Detergent Market in India as of 2015 (Surf Excel, Ariel, Nirma, Wheel, Tide, Ghari)

Porter's Five Forces, Porter's Generic Strategies, STP, Perceptual Map for all of the following.
1) Surf Excel vs. Ariel,
2) Nirma vs. Wheel,
3) Tide vs. Ghari
This .ppt originally contained video but I had to remove them due to size issues.

This presentation links all the above mentioned brands with Porter's 5 forces model and Porter's Generic Strategies.

1. Detergent Market in India

2. Indian Detergent Market Landscape Current Market Size (Organized Detergent Market) 2015: Rs.15,000 Crore Total Volume 2013 (Production): 1.9 Million Tonnes CAGR (2012-2015): 11% approx. Washing Machine Penetration in India: 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 households Source: Market Research Report on Detergent Industry in India by Niir Project Consultancy Services (NPCS)

3. Indian Detergent Market Landscape

4. Indian Detergent Market Landscape Timeline:

5. Indian Detergent Market Landscape The Detergent market is dominated by following major players: Hindustan Unilever Limited (HUL) Rohit Surfactants Pvt. Ltd. (RSPL) Procter & Gamble (P&G) Nirma Jyothy Laboratories & Others

6. Surf, Ariel Rin , Tide Ghari , Nirma, Wheel, Fena Brands:

7. Porter’s Five Forces Model Competitive Rivalry Threat of New Entrants Bargaining Power of Suppliers Threat of Substitutes Bargaining Power of Buyers

8. We will measure the forces on the following scale:

9. 1 .) Competitive Rivalry

10. 2.) Bargaining Power of Suppliers

11. 3.) Threat of New Entrants

12. 4 .) Bargaining Power of Buyers

13. 5.) Threat of Substitutes

14. Porter’s Generic Strategies Broad Target Narrow Target Lower Cost Differentiation Competitive Advantage Market Scope

15. VS.

16. Surf Excel Launched in 1959 in India as 1 st D etergent P owder. One of the brands under Unilever. Ariel Launched in 1991 in India as Detergent Powder. One of the brands under P&G.

17. Surf Excel Product Range Surf Excel Matic Surf Excel Quickwash Surf Excel Easy W ash Surf Excel Liquid Wash

18. Surf Excel Product Range Surf Excel Matic Surf Excel Quickwash Surf Excel Easy W ash Surf Excel Liquid Wash Surf excel Quickwash with X- tra clean particles combines the power of stain removing products like blue, bleach and lemon. Multiple stains are removed with just 1 product. Surf excel Easy Wash is a superfine powder, in which tough stains are taken off in a jiffy. It is made with superior technology which unleashes the power of 10 hands Works in high water levels of front load washing machines. It has hand rub action power and is value for money. For 2 different types of washing machines, it offers 2 products: A.) Surf Excel Matic Top Load, B.) Surf Excel Matic Front Load. Surf excel Liquid Detergent works with the Dip Dab Drop formula. It has better dissolution with superior fragrance. It offers ‘ Color care’, and is safe for hands.

19. Ariel Product Range Ariel Color and Style Ariel Matic Ariel Complete+ Ariel 24 Hour Fresh

20. Ariel Product Range Ariel Matic Ariel Complete+ Ariel 24 Hour Fresh Ariel Colour and Style Ariel Complete+ removes tough stains in just 1 Wash. Especially formulated for semi automatic washing machines, Ariel’s cutting edge technology to provide impeccable cleaning Ariel 24 Hour Fresh provides tough stain removal along with long lasting fragrance. A dvanced perfume technology provide impeccable clothes along with refreshing fragrance that lasts upto 24 hours. It provides the Best stain removal in 1 Wash. Especially formulated for Fully Automatic Washing Machines. Best used for Front & Top Loading Fully Automatic Washing machines Ariel Colour & Style is specifically created for coloured clothes to remove tough stains and prevent colour fading. With Colour Lock Technology, it ensures coloured clothes stay shining like new.

21. “ Daag Achhe Hai ” “ Maa Ke Haathon Jaisi Safai ” “# ShareTheLoad ” Ad Ad Ad

22. Surf Excel ArieL S – Segmentation Premium Segment, Detergent. Mom’s washing children’s dirty clothes by T – Targeting Blue : All mid scale and premium segment buyers, Matic: Washing machine users Bar: Medium and Low Income families Quickwash : Consumers in water-scarce and hard-water regions. “ Daag Achhe Hai ” P – Positioning Positioned as a quality product at comparatively lower prices, in premium segment. S – Segmentation Premium Segment, Detergent. Nuclear families with high income-levels. T – Targeting Upper middle class – rich class of the society wanting superior quality. Washing machine users are also targeted by its product Ariel Matic . C ustomers wanting fragrance and color preservation. # ShareTheLoad P – Positioning Positioned as superior stain remover, offering fragrance and preserving colors, for a premium price.

23. 2kg 1kg 500gm 100gm 60gm 25gm Rs405 Rs210 Rs115 Rs20 Rs10 Rs5 2kg 1kg 500gm 100gm 60gm 25gm Rs437 Rs240 Rs130 Rs40 Rs20 Rs10

24. Porter’s Generic Strategies Broad Target Narrow Target Lower Cost Differentiation Competitive Advantage Market Scope

25. VS.

26. Nirma Launched in 1969 in India as Very Low-cost D etergent P owder. Nirma brand launched by a chemist named Karsanbhai Patel Wheel Launched in 1988 in India as fragrant low cost Detergent Powder. One of the brands under HUL.

27. Nirma Wheel In 1969, Karsanbhai Patel , a chemist, founded Nirma in Gujarat and went on to sell it nationally by 1985. Patel was offering detergent products for poor consumers, mostly in rural areas.   In fact, Nirma created a new business system that included a new product formulation , low-cost manufacturing process , wide distribution network , special packaging for daily purchasing, and value pricing . Current market share of Nirma is 12% of the total detergent market in India. HUL, in typical MNC fashion, initially dismissed Nirma’s strategy . However, as Nirma grew rapidly, HUL could see its local competitor was winning in a market it had disregarded. HUL decentralized the production, marketing, and distribution of the product to leverage the abundant labour pool in rural India, quickly creating sales channels through the thousands of small outlets where people at the bottom of the pyramid shop. In 1988, HUL launched Wheel to counter Nirma . Current market share of Wheel is 16.9% of the total detergent in India . History

28. Nirma Product Range Super Nirma Detergent Nirma Detergent Nirma Detergent Cake Super Nirma Detergent Cake

29. Active Wheel Detergent Lemon & Jasmine Active Wheel Bar Lemon & Orange Active Wheel Bar Lemon & Jasmine Active Wheel Detergent Lemon & Orange Wheel Product Range

30. “ Sabki Pasand Nirma” “Super Nirma Se Mile Super Safedi ” “ HaathNaa Jalein ” “ Nimbu Ki Shakti Aur Hazaro Phoolo Ki Khusboo ” Ad Ad Ad Ad

31. Nirma Wheel S – Segmentation Low-End Segment, Rural Households (Basically all belonging to bottom of the pyramid) ‘ Sabki Pasand Nirma’ T – Targeting Nirma is spread across a huge market having an excellent distribution channel. Low Income and rural families. P – Positioning Nirma positioned itself as an affordable product between the people who could not afford detergents and for people who were looking for something more reasonable and added value for money. S – Segmentation Low-end Segment Detergent, people from lower-middle class and poor class. ‘ M ehangi W ali D hulai B udget M ein S amai ’ T – Targeting Low income and rural people C ustomers wanting fragrance P – Positioning Positioned as a house-hold chore Powerful detergent with fragrance.

32. Nirma Wheel Cost leadership strategy Nirma chemicals was able to challenge the might of Hindustan lever by pursuing this strategy by producing products more cheaply than Surf. At that time, it was sold at Rs 3.5 per kg while HUL’s surf was priced at Rs 15. The mission of Nirma was to provide better quality products at best prices Nirma is a very good example of fulfilling the unmet needs of the customers. Once you fulfill the unmet needs, you also get the  first mover advantage . Differentiation strategy. Nirma was already there in the market for many years so the possibility of breaking the price barrier of Nirma ruled out and so also the place. Now the only thing left was the promotion by getting a Brand Ambassador / Celebrity Endorser and that’s what HUL did.   HUL incorporated artificial fragrance into Wheel, with photographs of Lemon, Jasmine, Sandal etc. to make consumers believe that it contains real ones. Research picked up the insight that Nirma was not kind on hands because of its high soda ash content. "Maine maangi thi safaai , aur tu ne di haathon ki jalan " commercial, which took the battle straight to Nirma's turf.  

33. Porter’s Generic Strategies Broad Target Narrow Target Lower Cost Differentiation Competitive Advantage Market Scope

34. VS.

35. TIDE Launched in 2000 in India as Detergent P owder. One of the brands under P&G. GHARI Launched in 1987 in India as Low Cost, Good Quality Detergent Powder. Brand under RSPL.

36. “ Chaunk Gaye?” “ Pehle Istemal Karein , Fir Vishwas Karein ” Ad Ad

37. Tide GHARI S – Segmentation Medium Level Income Segment, Soaps & Detergent. T – Targeting Middle class women, washing clothes on their own. Middle class buyers who cannot afford premium products but aspire for equally good products P – Positioning Positioned as a very good quality detergent offering superior whiteness, good odor, affordable price. An all round detergent possessing all the desired qualities of a detergent. S – Segmentation Low-end Income Segment (Mass), Soaps & Detergent. T – Targeting Lower middle class households in Tier 3 and Tier 4 regions. Also targeted people in rural areas in different geographies. P – Positioning Positioned as a good quality product (compared to low-end products like Nirma and Wheel) but at a slightly higher price. A product that doesn’t impair ‘ Kismat ki rekha ’.

38. Porter’s Generic Strategies Broad Target Narrow Target Lower Cost Differentiation Competitive Advantage Market Scope

39. This is not the End, my friends. Let’s have a quick summary on Porter’s Generic Strategies.

40. Broad Target Narrow Target Lower Cost Differentiation Competitive Advantage Market Scope Porter’s Generic Strategies (with respect to competition and price segment)

41. Broad Target Narrow Target Lower Cost Differentiation Competitive Advantage Market Scope Porter’s Generic Strategies (in overall Detergent Industry)

42. Perceptual Map (Above discussed brands) High Price Low Price High Quality Low Quality

43. References http:// www.icmrindia.org/free%20resources/casestudies/The%20Nirma.htm http:// mba.mit.asia/waves-2014/Success-Story-of-Nirma.pdf https ://www.surfexcel.in/laundry-products / Market Research Report on DETERGENT INDUSTRY IN INDIA (By NPCS) [PDF] Indian Consumer Laundry Study (By Dupont ) [PDF] Porter’s Five Forces Model and Porter’s Generic Strategies (multiple sites)   http:// consumeraffairs.nic.in/WriteReadData/userfiles/file/DetergentPowders.pdf

44. The End Thank You 