Marketing ManagementProject

On

Spark Private Limited

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Group 11.) Current Trends in Product Category (Detergent Category)

Spark Private Limited currently owns brands that offer detergent products only. Hence the

product category is Detergents.

Current Market Size of Organized Detergent Market in India, as on 2015, is Rs.15000 Crore.

Total Volume, for the year 2013, in terms of production was 1.9 Million Tonnes.

CAGR for last three years from 2012-2015 is approximately 11% per year.

Washing Machine Penetration in India is 8.8%

Indian Population Division:

Urban : 33%

Rural : 67%

Households Owning Washing Machine:

Urban : 27.5% of all urban households

Rural : 0.6% of all rural household

Detergents are available in 3 forms:

Powder

Bar

Liquid

In India

18.2% of people use Automatic Detergent and within that 17.9% use Powder form and

only 0.3% use Liquid form while

81.8% of people use Non Automatic Detergent and within that 55.9% use hand wash

detergent, 25.1% use Detergent Bars and 0.8% use other.

For different segments, mentioned below, different detergents are offered.

Premium (15%) - Surf Excel, Ariel

Mid (40%) - Rin, Tide

Economy

(45%) -

Ghari,

Wheel,

Nirma,

Fena

Cleaning products have become essential in the everyday life of the modern consumer. For this

reason, the market continues to grow year on year - global sales of household cleaning products

are predicted to reach $147bn in 2017. Some current trends, as per various aspects are:

(i) Performance

Above all, a cleaning product must be effective and live up to the promise made on the pack.

Although essential, cleaning can be time-consuming so products which complete the task quickly

and to a high standard are favorable. Products which combine their efficiency with innovative

features have an advantage in this marketplace.

(ii) Cost-Effectiveness

While a number of customers in more developed regions are willing to pay more for a product if

it performs better, others may prefer cheaper products, and will accept a certain reduced level of

performance. Manufacturers can minimize costs by using less sophisticated ingredients, provided

that they still achieve the level of performance which consumers expect.

(iii) Ease of Use

Consumers have increasingly busy lifestyles, so products which make the process of gaining a

spotless home more quickly and at minimum effort are becoming increasingly popular.

Identifying ways to make products as intuitive and easy to use as possible will be key to

succeeding in this market.

(iv)Environmental Awareness

Sophisticated consumers are considering how the extraction, manufacture and disposal of

cleaning products has a major effect on their energy and water consumption, and are looking for

ways to minimize their wider impact.

(v) Fragrance, Aesthetics and Packaging

As the market becomes more saturated, differentiators such as attractive packaging or pleasant

fragrances have increased shelf appeal and can influence buyer's quick purchasing decisions.

One of the most important factors of a cleaning product is efficacy, so packaging should

showcase both the product's efficiency and quality.

2.) Company Profile

Spark Private Limited

About Us

We live in fast-paced ever changing world. These changes affect our lives and lifestyles and

therefore it is crucial to learn to be resilient. The driving force at Spark is to understand profound

changes in product technology and consumer needs to make our brands the way consumer

desires them to be. We started in 2000 with modest resources and honest intentions. Over the

years, we have grown steadily to its present position and are recognized as a leading player in the

field of detergent. Spark today is a professionally managed company which seeks to realize its

vision within the framework of its well defined value system.

The flagship brands of our company are DeoWash, InstaShine and ‘Bachat’ which enjoy strong

brand equity in their respective segments due to their excellent quality, innovative offering,

superior performance and value for money proposition.

Vision

We aspire to be world class organization and global player in the detergents and cleaning

industry. Our company is committed to consistently offer better quality products and services

that maximize value to the customer. We aspire to solve consumer problems related to laundry

and offer them innovative products to offer products that people didn’t imagine can exist.

Mission

As our name suggest, we want to ‘spark’ inspiration in youth of India, to bring out more

innovation, be more responsible and drive growth of our country. We wish to serve and satisfy

all types of customers. It is our aim to be profitable by optimized business operations, achieve

prosperity for our stakeholders, and contribute to the society, our nation, and the environment by

constantly innovating products that are eco-friendly and use less amount of water.

Our Core Values

Credibility

Innovation

Integrity

Responsibility

With these values at its core, Spark Private Limited strives to not just satisfy its customers but

delight them by offering superior, innovative and valuable products.

3.) Current Trends of Organization

India is inclined towards positive momentum with increase in demand for premium powder

detergents in big cities in 2014. Consumers are trying out brands that are one notch higher

compared to what they were using and this is increasing in switching ratios. Increasing sales of

branded apparel have also influenced consumers to use branded detergents and fabric softeners.

Spark continued to maintain its lead in laundry care with a major market share in 2015. The

company enjoys a long-established presence in all categories of laundry care in India. The

company’s widening distribution and its continued offer of various products at different price

points helps it cater to a larger consumer base. The company’s brands present at different price

points are an advantage when looking towards developing a larger consumer base.

Value sales of laundry detergents are expected to grow at a CAGR of 11% at constant 2015

prices over the forecast period, due to the increasing urbanization and increasing penetration of

washing machines into semi-urban areas of India. Bar detergents are expected to continue losing

consumers over hand wash and standard powder detergents, as this product is suffering from

changing preferences due to lifestyle and convenience factors.

The net-worth of Spark Pvt. Ltd., as on 2015, is Rs.3800 Crores, with its flagship brands

DeoWash, Bachat and InstaShine accounting for all the turnover.

Spark Pvt. Ltd. reaches out to even the remotest villages of India, thus accounting for 22% share

of the total detergent market in India. ‘Bachat’, the low cost, quality detergent, launched recently

in 2014 especially for rural market, has acquired 28% of whole rural market for detergents and

approximately 9% of whole detergent market. As of April 2014, Spark’s strong distribution

network covered over 1 million retail outlets in India. Company has overall more than 2000

wholesalers in the country and is even available in villages with a population of 500. As regards

the consumption pattern is concerned, surveys and estimates by industry from time to time

indicate the average consumption scenario in the four zones have been more or less close to each

other with some variations observed time to time. ‘InstaShine’ is the most trusted brand across

detergent category, according to the Trusted Brands Survey conducted last year. One of the

reasons behind the popularity of this brand is its efficacy and superior value.

Social Media and online retailing being the key drivers of growth and brand building, Spark Pvt.

Ltd. has focused on these growing platforms and carried out various promotional activities for its

brand ‘DeoWash’, a premium segment brand to directly engage with the customers. ‘DeoWash’

and ‘InstaShine’ are also made available in leading e-tailers like Flipkart, Snapdeal, Amazon,

infibeam, shopclues, etc. and has gained much popularity in the respective segment due to good

user-ratings and reviews.

4.) Product Names:A.) Brand 1: Bachat

Under this brand ‘Bachat’, there is only one variant which is ‘Bachat

Rozana’. But we also offer ‘Bachat Detergent Bar’.

The brand logo is as shown besides. The brand is tailor made for the

needs of Rural Consumers, who are price sensitive and face water

problems, as this product offers same performance as others using far less

amount of water and at a cheaper rate. The product is designed on the

lines of our mission to save water, make environment-friendly products.

B.) Brand 2: InstaShine

Under this brand ‘InstaShine’, there are two variants, first is ‘InstaShine

Auto’ for washing-machine users and other one is ‘InstaShine Ultra’ for

hand-washing users.

The brand logo is as show besides. The brand is custom made for the

middle segment customers who want quality product consuming lesser

time and effort to wash clothes. The target market is the hostellers and

PGs who don’t have much time to wash clothes and do not like to put

much efforts in washing clothes, yet want their clothes to look clean and

bright every day.

C.) Brand 3: DeoWash

Under this brand ‘DeoWash’, there are three variants, first is ‘DeoWash Paris’, second is

‘DeoWash Musk’ and third is ‘DeoWash Jasmine’.

The brand logo is as shown besides. This brand was the first brand

launched by Spark Pvt. Ltd., in 2000 when it entered the market offering

only the ‘Paris’ and ‘Musk’ variants. This is an upscale brand catering to

the needs of premium buyers, ready to pay extra for innovative products.

The products under this brand offers fragrance that lasts 8 hours, and the consumers won’t even

require deodorants and perfumes as every yarn of the clothe exudes great fragrance. Over the

time, with growing demand of home-like flavors, we launched ‘Jasmine’for consumers having

preference for native fragrances.

5.) Segmentation, Targeting, & Positioning [STP] (for all the 3 Brands)

1.) DeoWash

S- Home-care segment, consumers belonging to ‘middle-class’, ‘upper-middle’, ‘upper-

class’ categories, and also belonging to ‘urban’ geographic locations.

T- All Indian households, especially ‘upper-middle class’ and ‘upper-class’, business

executives, officers, students in premier schools and colleges, doctors, and all high-

income group customers.

P- Positioned as an upscale brand, offering 8 hour fragrance. The ‘Stay Bright, Stay

Fresh’ is the tagline denoting the youthfulness of the product, while the name itself

suggests Deodorizing wash and hence no need of using deodorants/perfumes.

(DeoWash is priced at Rs.220/kg compared to highest Rs.195/kg price of competitor Ariel.

DeoWash is available at all major supermarkets and at all retail stores in good urban areas,

promoted by advertising campaign ‘Using DeoWash is as easy as using deodorant’.)

2.) InstaShine

S- Home-care segment, consumers belonging to ‘lower middle’, ‘middle’ and ‘upper

middle’ class categories.

T- Targeting above segments, especially all the people working/studying away from

home. All the individuals washing some clothes on their own, requiring effort-less

washing and those who have less time for this chores. Target market is also all those

businesses which provide laundry services.

P- Positioned as a unique detergent, which on using, doesn’t require clothes to be

scrubbed by detergent bars, the detergent being self-sufficient to remove all the stains

instantly, and offers color locking technology to preserve colors and make them more

vibrant. The name and tagline suggests, that it provides instant wash & vibrancy to

clothes.

(InstaShine is priced at Rs.95/kg compared to Rs.85/kg of the competitor Tide, in the same

segment. The bit of premium is due to its USP of no scrubbing of clothes required. Promoted

using the advertising campaign ‘Just Soak and you are done.’)

3.) Bachat

S- Bottom of the pyramid consumers, consumers belonging to rural regions, and ‘low

income’ group of customers from urban area as well.

T- This detergent is targeted to all the households of rural areas, water-scarce regions,

and all ‘low income’ class of consumers from urban segment too. All the small scale

laundry service providers in rural and rurban regions.

P- Positioned as a low cost detergent powder, requiring very less water. It is positioned as

a quality detergent powder at a very low cost, especially a USP of using less water

resources for washing. The brand name and slogan are in Hindi to attract more rural

customers and signify its value proposition clearly.

(Bachat is priced at Rs.40/kg against least priced Rs.45/kg competitor Nirma. It is highly

distributed product in Rural areas, through aggressive distribution strategy, made available in

villages having population of even just 500 people. It is available at most of the local kirana

stores at all rural and rurban regions and major urban areas except posh areas. Promoted by

advertising campaign, using slogan, ‘Paise Bachaav, Paani Bachaav’ meaning save water and

save money.)

6.) Future Trends & Conclusion

Spark is committed to meeting the needs of consumers in an environmentally sound and

sustainable manner, through continuous improvement in environmental performance in all our

activities. We envision a future revolution that makes the most ordinary thing extraordinary!

The industry increasingly recognizes its responsibility both to introduce new, cleaner

technologies and products, and to encourage consumer behavior that will result in a lower

environmental impact.

Following are some of the future trends predicted on the basis of research going on in the present

and consumer requirement surveys.

1) Fabric Conditioner

Long Lasting Fragrance: Clothes remain fresh and fragrant for up to 14 days after washing.

Softness: Smoothens the fibers, thereby providing them with a rich softness that makes them

a delight to wear.

2) Detergent Tablet

Tablets enable controlled lower dosage of detergents per wash: controlled, because of the format;

lower because of the fixed (low) amount required. The immediate and major benefit of tablets

would be a 53,000 Tonnes of reduction in chemical disposal into the environment. In fact, the

environmental benefits of tablets are threefold:

Reduced chemical disposal

Reduced packaging consumption

3) Detergent Spray

A "preventive" detergent is designed to minimize washing, envisioning a "hydrophobic solution"

that would be sprayed onto clothing, "creating a protective layer" and hence there won’t be any

stains. It would be formed from nano-particles, and dispensed from a handheld device small

enough for a handbag. It is being called the "new way to wash".

4) Detergent Stickers

Not every part of shirt is equally dirty. Hence the need for "detergent stickers" that fix to

particular areas, and that are designed for certain stains (grease, chocolate, etc.). Instead of using

extra detergent on stains, inventing something that could be applied directly on dirt or body odor,

would be better. The product would be lighter than conventional liquids and reduce

environmental impacts.

Spark Private Limited closely watches and spends on R&D to continuously improve product

offerings, and delight its customers by providing innovative, and value for money products

which make their lives easier.