DETERGENT POWDER MARKET

IN

INDIA

DETERGENT POWDER MARKET

IN

INDIA

CHARACTERISTICS

OF

INDIAN DETERGENT MARKET

CHARACTERISTICS

OF

INDIAN DETERGENT MARKET Rural consumer is one who has limited educational background, is

exposed to limited products and brands.

Choosing price over quality and is influenced by word of mouth communication.

Low per capita consumption.

The changing consumption pattern shows the new improved lifestyle of rural consumers.

The lifestyle of rural consumer is influenced by:

Increasing incomes & income distribution.

Marketers efforts to reach out & educate potential consumers.

The situation in which he or she utilizes the product.

New consumption patterns all brands are participating in the race of detergent powder & cakes.

DETERGENT MARKET an Indian Perspective.

$ 23 Lakh Tonne Market. vegetable oil-7 lakh tonne

&

16 lakh tonne-synthetic detergent

$ Synthetic Detergent Market. Detergent Cakes- 40%

&

60% Washing Powder

$ 23 Lakh Tonne Market. vegetable oil-7 lakh tonne

&

16 lakh tonne-synthetic detergent

$ Synthetic Detergent Market. Detergent Cakes- 40%

&

60% Washing Powder

PLAYERS IN DETERGENT MARKET

IN

INDIA

PLAYERS IN DETERGENT MARKET

IN

INDIA

MARKET SHARE OWNED BY DIFFERENT PLAYERS

Segmentation of Detergent Market in India

Premium

Ariel Ultramatic &Spring Clean

Surf-Automatic & Quick Wash

Mid-Priced

Surf Excel Blue,

Tide, Stain Champion

Mass Market

Wheel, Fena,

Nirma, Ghadi

CONTRIBUTION OF VARIUOS BRANDS

$ The Premium & Mid Priced segments -20% of volume share & 35% of the Value Share.

$ The Economy (mass market) – 80% of volume share & 65% of value share being Lion share of the market.

ARIEL

INTRODUCTION

$ Ariel was Launched by P&G India in 1991.

$ Compact Detergent.

$ Enzyme Technology.

$ Superior cleaning in a choice of fragrances.

NIRMA STORY

"Washing powder nirma,Washing powder nirma,

Doodh si safedi nirma se aaye,

Rangeen kapde bhi khil khil jaye,

Sabki pasand nirama

Washing powder nirma,Washing powder nirma.

NIRMA ……washing the competition away

Founded by Mr. Karsanbhai Patel.

Started in early 1970s.

HLL- being an MNC said, “That is not our market”, “we need not be concerned”.

Nirma became the success story being one man game and evolved as a national brand soon after 1982.

StrengthsStrong brand equity. Nirma is a Rs. 17 billion umbrella brand offering a broad portfolio f of products as multiple price points.

Market leadership in detergents & fabric washes and second largest player in toilet soaps market.

Wide distribution market.

WeaknessHighest interest burden.

Less presence iin premium segment.

Lack of global tie ups and thus finding hard to export markets.

OpportunitiesExports acquisitions for strengthening its distribution tie-ups.

Entry into other categories like shampoos, toothpastes and fabric whiteners.

Threats:

MNCs coming to India particularly in toilet and soap industry.

Emergence of small but strong regional plaers.

WHEEL DETERGENT

Taking the Consumers for a spin.............................Hindustan lever

Wheel Was launched by HLL in competition with Nirma to get the piece of market back in various ways.

Communication was designed to penetrate into lower middle class segment saying green for extra dirty clothes.

RANGE OF WHEEL IN MARKET

Wheel Soap Wheel Lemon Power Wheel Power White

Wheel Lemon Power Sachet

$ Less par capita consumption.

$Low per Capita Income.Low per Capita Income.

$Logistics (Transport & Handling)Logistics (Transport & Handling)

$ Storage (Warehousing & Storage (Warehousing & Commercial space).Commercial space).

$ Market organization & StaffMarket organization & Staff

$ Product PositioningProduct Positioning

$ Hierarchy of Markets Hierarchy of Markets

$ Hold of Middle menHold of Middle men $ Lack of Financial AidLack of Financial Aid

$ Lack of Market information.Lack of Market information.

PROBLEMS OF “RURAL MARKETING”

HLL’S Promotion:Came up with an add saying 1 kg surf with 1 kg low-priced yellow washing powder & showed that surf was better.

Based on Market Research: different colors of washing powder’s association with different fabrics.Yellow- middle class families.Blue- middle & higher income level families for expensive clothes.Green- for cleaning of extra-dirty clothes.

Based on this association HLL launched:Sunlight- yellowWheel- greenRin- blueSurf ultra- white.

MARKET AT A GLANCE

Nirma was the lowest priced branded washing powder.

Nirma also had an impact on the upper middle & higher income families for washing of inexpensive & linens.

However Nirma made all other consumer product companies sit up an take a fresh look of their markets once again.

Nirma announced the results with their marketing strategy behind the success.

The Benchmark in

Indian Detergent Market

Nirma a Grand success

Adequate Quality at an affordable price.

Unique selling proposition was PRICE PRICE & PRICE.

Against the industry growth of 15% Nirma achieved 30-35%

Backward Integration resulted in lowest cost detergent manufacturer with 25% cost savings (Rs 0.8-1 bn year)

Packaging – Nirma 1 kg -18.00

- Nirma 500 gms -9.00

Scouring Products Salt

Detergents

Soaps

Cakes&

For Rural Segment

For Premium Segment

The firs P –Packaging being simple with no color and design.

The second P- Price, the brand was selling like a hotcakes and the market for Nirma grew from 0% -61.6%.

The third P- Planning, comprehensive & widespread distribution network, they ruled the rural market.

The fourth P-Promotion, Nirma used radio, posters, banners & mobile vans as media options.

Selling to Rural Markets Selling to Rural Markets

TTHHAANNKK

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