Professional Documents
Culture Documents
On
Detergent
Submitted to-
submitted by-
Dr. vaishali goel divya
rastogi
NAINA CHAUHAN
ALI KHAN
Evolution of detergent industry in India
Huge post-war expansion of the synthetic detergent industry in its key market, the US,
and the associated environmental problems. Sulphonates used in detergent to get the
1950s dirt of clothes, were not biodegradable. Their release into water bodies lead to huge
amounts of foam being formed in lakes and rivers. Under public pressure,
manufacturers switched to biodegradable substances.
1957 The first Indian factory to manufacture synthetic detergents set up by Swastik Oil
Mills in Wadala, Mumbai. Even though key ingredients are imported, they still cost far
less than importing finished detergents.
HUL (then HLL) enters India accelerating the shift to detergents is persisting shortages
of vegetable oils, a key ingredient in soap. By the mid-60s large corporates like Tata Oil
1960s
Mills and Hindustan Lever establish themselves in the business. The latter even begins
exporting to Russia.
Since 1950, another key ingredient in detergents was phosphate chemicals, which is
effective in washing clothes in 'hard' water. But they also caused 'eutrophication', a
1965- dramatic and excessive growth of plants in lakes and other water bodies that uses up
70 most of the oxygen, leading to the death of marine life like fish. Detergent makers in the
US started using non-phosphate chemicals in response to the criticism, though they fight
against an outright ban.
Shortages in vegetable oils accelerate and so does the use of synthetic detergents. To
promote their use among wary soap-using consumers in rural India, companies like HUL
1970s perform plays and puppet shows at mandis. HUL also introduces Rin Bar at about this
time. Mindful of the need to conserve the use of vegetable oil, government classifies
synthetic detergents as a 'core' industry.
1974 Despite the expansion in synthetic detergents, the capacity of the Indian industry is still
only 84,000 tonnes, far less than the government-sanctioned capacity of 3.5 lakh
tonnes. Queering the pitch, the government begins pondering the liberalisation of
licences, but only to the small-scale sector.
Due to the West Asia oil crisis, prices of key petrochemicals skyrocket, by as much as
100%, forcing manufacturers to raise prices of detergents. The price of Surf doubles in
1975
one year, causing outrage in Parliament against companies like HUL. Such high raw
material prices will persist through the 70s.
Point, a detergent brand, achieves history by being the first product in this category
launched by a sarkari factory, the public-sector Government Soap Factory of
1975 Bangalore (which also makes Mysore Sandal soap). Soap Opera, Mid- to Late-70s
High detergent prices make soap manufacturers competitive, causing consumers to
switch.
25 years after the first domestic factory was established, synthetic detergents only
1983 manage a 25% market share of the total fabric washing market. By comparison, the
market shares in Thailand that time is 99% and in Kenya, 60%.
Saea ade as lower-priced Nirma evicts HUL's Surf from the pole position in the
1985
detergents market.
Unnoticed by the biggies, brothers Muralidhar and Bimal Kumar Gyanchandani launch
1987
Ghari, which will eventually come to rival the two giants in market share.
HUL introduces Wheel to take on Nirma. In its battle with Nirma, HUL will bring its
1988
massive marketing and distribution muscle to bear.
1990
Ariel was launched by p & g.
DIRECTORS OF HUL
Name Designation
Sanjiv Mehta Managing Director & CEO
Dev Bajpai Executive Director
S Ramadorai Independent Director
Sanjiv Misra Independent Director
Aditya Narayan Independent Director
Pradeep Banerjee Executive Director
Srinivas Phatak Executive Director & CFO
O P Bhatt Independent Director
Kalpana Morparia Independent Director
ORGANISATION STRUCTURE OF
P&G
Chairman,
President& Ceo;
David S. Taylor
Baby &
Fabric&
Family Health Care
Home Care
Care
Vicks
Tagline
Marketing Strategy
Surf has been in the market for a long time and has effectively managed
his product life cycle with the help of product innovations and great
marketing strategies.
Formulation of the detergent and the market targeted vary by region
Advertisement through television ,radio
Forming emotional relation with consumers by advertising through
general public
Producing skin care products
Working with suppliers thus covering business integrity and
responsibilities relating to employees
Online advertising for internet consumers
Effective ad campaign
Approaching new market
T ARGET GROUP
Every Indian Household – for washing purposes
P OSITIONING Surf Excel has constantly upgraded itself over the years, to
answer the constantly changing washing needs of the Indian
homemaker
USP
Surf Excel offers outstanding stain removal ability on a wide
range of stains
Weaknesses-
1. Slightly Higher price prevents it from reaching to the mass of customers.
2. Product awareness not high among rural markets.
3. Legal issues due to brand wars.
Opportunities-
1. Rapid market growth with further rural penetration.
2. Adapting to changing customer needs & improving life styles.
Threats-
1. Low profit margins in detergent sector.
2. Threat from existing and new players in the market.
ARIEL INTRODUCTION
ARIEL is marketing line of laundry detergents made by Procter &
Gamble co.
It is the flagship brand in P&G.
It was launched in 1991 in India.
Ariel products are developed with sustainability in mind; from the
ingredients we use and the concentration of our formula, to an
outstanding performance in energy efficient cycles, right through
to our packaging.
The 2000s brought with them a change of pace, though, and we
found there was suddenly no time left in the day. This is why in
2001, liquitabs were invented, giving the world the quickest, easiest
Ariel clean yet, while still offering amazing results.
In early 2018, Ariel launched the purcleanTM Washing Liquid,
Ariel’s first 70% plant-based detergent, designed to give
outstanding cleaning performance even in quick cycles.
Enzyme Technology-each enzyme removes a specific stain.
Compact Detergent-as very less amount of Ariel is required for
washing the clothes.
Ariel has decided to enter the rural market of household products
and hence has launched some mid-priced brands to penetrate and
capture this section of society.in order to cater to consumers who
belong to medium income group they have launched “ARIEL SUPER
SOAKER”, a new product, without comprising on its quality.
PRICE-RS.242/KG
PRICE-RS.236/KG
PRICE-RS.204/KG
PRICE-RS.205/KG
Ariel STP
Segment Premium product – People who want quality and are ready to pay
more price for good quality product
3. Has made a strong base in the mind of users by various innovations in marketing
Weaknesses-
2. Strong competitors
Opportunities-
• Introduced in 1946.
1kg Rs.98/-
Tide STP
Segment People who have fixed budget for household things like detergents
and look for
economical options
Target Group Women ages 18 to 54 years old, middle classes
Weaknesses-
1. Strong competitors
2. Substitute products available at the same price
Opportunities-
opportunities
Threats-
1. Price wars with competitors
2. Aggressive promotion by competitors , harming the reputation of the product
and ambush marketing
3. Counterfeit products in the rural market
CSR OF HUL
I. PROJECT SHAKTI- It is an initiative to financially empower rural
women and create livelihood opportunities for them. Through this project, the
Company endeavours to enhance livelihoods of rural women. Around 70% of
Shakti Ammas are working in low Human Development Index (HDI < 0.51)
districts. The company contact and appoint rural women as Shakti
Entrepreneurs (SE), commonly referred as 'Shakti Ammas'. SE are educated
and trained by the rural promoter about the Company products and their utility
in day to day life in maintaining health and hygiene. After being trained about
the products she sreceives stocks from company rural distributor at a discount
below the price at which the products are sold in the normal course. The
Shakti Entrepreneur then sells these goods both directly to consumers
(through home to home selling) and to retailers in the village. The Company
has trained thousands of Shakti Ammas across the villages in a bid to develop
an entrepreneurial mindset and make them financially independent and more
empowered. A typical Shakti Amma earns around Rs. 1000/- per month
through selling our products. A Shakti Amma in her village gains a social
stature as she is associated with the reputed company in addition to being
financially empowered.
CSR OF P&G
Market Share
SURF EXCEL
ARIEL
56%
28%
16% TIDE
140
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Brand Name Quality Frgrance PerformanceAdvertising Price
Innovatio
n
Brand
Loyalt
y
Low Awaren
Pricing ess
building
Strateg campaig
y ns
Innovation- Surf excel has constantly innovated ahead of market & launched different product
formats to cater changing needs of Indian consumers.
Low pricing strategy- Surf excel targets premium and mid-tier consumer with maximum market
share pricing strategy. All its products are priced lower than the rival P&G brand ARIEL and
TIDE.
Brand loyalty- Surf excel is one of those brands with which consumer has strong association
and loyalty level of consumer is very high with this brand and surf excel is highly advertised and
awareness level of this brand is very high among consumers .
Awareness building campaigns- In the recent past, there has been a lot of awareness about
Swachh Bharat Abhiyaan. We have also seen host of celebrities come out to clean up their
localities and in turn motivate us to take that first step to keeping our country clean. But how
many of us actually contributed to this initiative? We always ensure that we keep our homes
clean, but what about our immediate surroundings and our country? Isn’t India our home too?
Surf Excel saw this opportunity and partnered with mothers & kids to encourage us to be
responsible citizen & to take initiative to KEEP INDIA CLEAN campaign. The other campaigns
are READY FOR LIFE, FORGIVENESS, DIGITAL campaign which promotes parent and child
bonding.