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Detergent market is one of the segments of FMCG marketMainly consists of synthetic detergents, including powder and liquidsSize of detergent market in India was around Rs. 14000 crore in 2012, estimated to grow to over Rs. 24000 in 2017Detergent market segmentsPremium segmentMid price segmentPopular segment

Source : http://www.business-standard.com/article/opinion/soaps-and-detergents-market-sees-plenty-of-action-112121100104_1.html

Source: www.hul.co.in ; www.ariel.in; http://www.nirma.co.in/Source: www.hul.co.in ; www.ariel.in; http://www.nirma.co.in/Marketing Mix Model

Surf ExcelProduct

ArielProductSource:www.ariel.in

NirmaProductSource: www.nirma.co.in

Surf ExcelThe pricing strategy of surf excel have always been in accordance with its close competitorsPrice War and Discounts Stiff price war between Surf Excel and ArielRetail Distributor MarginFor sale of 200g packet 8% discount for dealersFor sale of 20g packet 12% discount for dealersWholesaler Distributor MarginStandard discount of 1.5% on sale of any variant

Products20gm200 gm500 gm1 Kg1.5 Kg3 KgSurf Excel Blue2/-16/-41/--113/-240/-Surf Excel Quick Wash2/-26/-56/-109/---Sur Excel matic--107---PricePRICE ArielUsually priced highIn 2003, P&G adopted a more aggressive pricing strategy and cut down prices by nearly 50% in September 2003, unleashing a price war with HULs Surf Excel

Detergent BrandsPrice for 500 gram packs Price for 0ne kg pack Surf Excel BlueRs. 38 (Rs. 50)* Rs. 60 (Rs. 85)* Surf ExcelRs. 50 (Rs. 70)* Rs. 99 (Rs.130)* ArielRs. 50 (Rs. 70)* Rs.99 (Rs. 135)* *Prices before price cut. Source: Compiled by IKC, March 20041P&G kicks off sudsy war, HLL to follow suit, Business Standard, 4thMarch 2004.

Prices of Detergent Brands after Price Cuts in 2004 Product namePrice in Rupees (/kg)Arial Complete182Ariel AntiBac193Ariel 24-hour Fresh199Ariel Matic193Ariel Oxy Blue199Current list prices of ArielPricePRICE NirmaPrice is Nirmas Unique selling propositionCredit - Nirma used to provide credit term for only 3 days to its distributors with only cash and cheque payCredit form

RetailorWholesalerList Price ( for 1kg- Rs37.)Rs 34Rs 32.745Discount10%11.5%Allowance--Period Week1 WeekHave to pay on next dayCredit TermsPay in cash/chequePay in cash/chequePriceSurf Excel

PromotionAriel

PromotionNirma

PromotionSurf Excel Source: http://www.livemint.com/Home-Page/Cm2Hg54xJmJHZeIOBVjzyI/HUL-set-to-streamline-distribution-network.htmlhttp://www.accenture.com/Microsites/emerging-markets/Documents/pdf/Accenture-Unilever-Case-Study-Final.pdfhttp://forbesindia.com/article/boardroom/hindustan-unilevers-bharat-darshan/17462/0

PlaceArielPlaceNirmaPlacePACKAGINGImportance of packaging in the rural market of IndiaInfluenced by low Income group section of societyAffordable smaller packet of 20gm(Rs 2 /packet) of Surf Excel & ArielMore cheaper packet Re 1/packet by TideStrategy to cover the rural market.Promotion Advertisement Word of mouthFreebiesWord of mouth isone of the most important sourcesto influence consumers decisions

PlaceLocal retail marketSupermarketOnline retailSurf Excel, Ariel has most of its purchasesfrom supermarketwhereas people buyNirma mostly from local retail marketPreferred AttributeCleaning PowerPriceAvailabilityFragranceStain removing capabilityCompatibility with washing machineEffect on fabric

HULSource: http://articles.economictimes.indiatimes.com/keyword/hindustan-unileverP&GSource: http://www.seattlepi.com/local/article/Counterfeit-laundry-detergent-sparks-police-raid-825250.php

NirmaSource: http://articles.economictimes.indiatimes.com/keyword/nirma

Recommendations

Marketing Management: Global Perspective, Indian Context -By RamaswamyThe fortune at the bottom of the pyramid - By C K PrahaladSales and Distribution Management -By S.L.GuptaArticles from Business Standard and Times of Indiawww.hul.co.inwww.ariel.inwww.nirma.co.in

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