A PROJECT REPORT ON

AN ANALYSIS OF THE DETERMINANTS OF PROFITABILITY OF THE

LAUNDRY CARE INDUSTRY AND PROPOSED MARKETING PLAN FOR
HINDUSTAN UNILEVER LIMITED.

SUBMITTED BY

JANET JOSE PALLIPARAMBIL

IN PARTIAL FULFILMENT FOR THE DEGREE OF

MASTER OF MANAGEMENT STUDIES
OF THE UNIVERSITY OF MUMBAI
(2020-2022)

XAVIER INSTITUTE OF MANAGEMENT AND RESEARCH

5, MAHAPALIKA MARG, MUMBAI – 400001

1
 DECLARATION

I, Janet Jose Palliparambil, student of Xavier Institute of Management and Research,

affiliated to Mumbai University, hereby declare that this project report titled “An analysis of
the determinants of profitability of the Laundry Care Industry and proposed
marketing plan for “Hindustan Unilever limited”, carried out under the guidance of
Prof. Pranil Naik is the record of authentic work carried out by me during the period from
16th May 2021 to 15nd July 2021.

Date: 22nd August 2021

Signature: Signature:

Janet Jose Palliparambil, Academic Project Guide: Prof. Pranil Naik.

 CERTIFICATE OF APPROVAL

The following project titled

AN ANALYSIS OF THE DETERMINANTS OF PROFITABILITY OF THE

LAUNDRY CARE INDUSTRY AND PROPOSED MARKETING PLAN FOR
HINDUSTAN UNILEVER LIMITED.

is hereby approved as a certified in the management carried out and presented in a manner
satisfactory to warrant its acceptance as a prerequisite for the award of the degree of Master
of Management Studies for which it has been submitted. It is understood that by the
approval, the undersigned does not necessarily endorse or approve any statement made,
opinion, or conclusions drawn therein but approve the project report for the purpose it is
submitted for.

Prof. Dr. K. N. Vaidyanathan

 ACKNOWLEDGEMENT

Working on the Laundry Care Industry keeping the Marketing aspect in focus has been highly

enlightening.

I would like to thank Prof. K. N. Vaidyanathan, Director, Xavier Institute of Management and

Research for the deep insights he provided while researching on the topic and introducing me to

Porter’s Five Forces Model for Industry Analysis.

I would like to thank Prof. Venkata Subramanian, Xavier Institute of Management and Research for

guiding me on the TOWS Matrix and Prof. Pranil Naik for crucially providing feedback about

Market Sizing and Marketing Plan.

I would also like to express gratitude to my classmates for supporting me throughout the project.
INTRODUCTION

The Indian detergent market is largely divided into two markets of organized and unorganized

players. The main products sold here are the detergent bars, detergent powder & liquid

detergent. The major proportion of the Indian market lies in the rural area in which people are

less aware of the brands, buys from general retails and is also highly price sensitive. Moreover,

they can easily switch to another product if it is being offered at a lower price. Hence, price

competition is a major factor in the Indian Detergent market. On the other side, urban people are

educated and are aware of the trends, brands and fabric hygiene. Furthermore, they also

purchase detergents from multi-brand retailers and e-commerce. Hence, the premium detergent

products such as washing machine powders and liquid detergents were developed targeting the

urban audience

The Indian Detergent market has always seen substantial growth and is expected to reach INR

49067 crore with a compounded annual growth rate (CAGR) of more than 9%. The Surf brand

of Hindustan Unilever Limited claims to be the first brand of the market but soon with the

introduction of indigenous brands such as Nirma and Ghari, the global leader lost its shares in

the Indian market. The indigenous brands Nirma and Ghari pinched the empathy of Indian

consumers and started making available detergent powder in the Indian market. However, Nirma

lost its share over the Ghari Detergent and the brand Ghari by Rohit Surfactants is currently

leading the Indian Market with the highest market share. The liquid detergent was brought by

HUL in the year 2013 under the brand name of Surf Excel. Other price-friendly brands such as

Rin, Active Wheel, Tide, etc came into the market with their pricing strategies.

The detergents are made available to the end consumer through mainly three sales channels -

General retail, Multi-brand retail and online retails. The rural market has only general retails

which restricts the people to have only one buying option. But the urban people enjoy various
discounts and festive offers given by Multibrand and online retails. The major working chains in

Indian multi-brand retailers are Big Bazaar, D mart, Bansal, etc. and e-commerce such as

Amazon, Flipkart, etc. offers a variety of detergents in different sizes and packaging.

To gain consumer satisfaction, the brands campaign their products for trials and attract

consumers by catchy taglines such as by Ghari detergent, by Nirma, by Tide and detergent brand

Surf Excel. Brand representatives also visit various houses and demonstrate their product

claiming to give the ultimate wash satisfaction. They also offer free trial pouches attached to

other products to let people test for the first time.

The prominent players in the Indian detergent market are Rohit surfactants, Hindustan Unilever

Limited, Procter & Gamble, Jyothy Laboratories and Nirma Limited.

LITERATURE REVIEW

Detergent Market - Overview

The Detergent Market is one of the segments of the FMCG market in India that has high growth

potential. The detergent based segment is divided into two broad categories - oil-based laundry

soaps and synthetic detergents, including bars, powder, and liquids. The detergent market is mainly

concentrated in the urban areas but the level of penetration in the rural areas for the past few years

has been good. The size of the Indian detergent market is roughly estimated to be ` 12,000 Cr.

Characterized by immense competition and high penetration levels the Indian detergent segment is

ruled by players like Hindustan Unilever Limited, Henkel and Procter & Gamble. As a result of

rapid urbanization the demand for better quality household products is constantly on a rise.

To cater to this increasing demand of quality washing powders most of the top detergent brands in

India are continually introducing better packaged detergents that are offering a host of benefits in a

single wash. In India HUL holds a 38 per cent market share in the washing powder segment clearly

standing as the winner. The other important players in the detergent industry include Surf Excel,
Nirma and Sunlight.

Detergent Market - Segments

● Detergent market in India can be further divided into four sub categories

● Concentrated and Compact Segments for washing machines such as, Surf Excel, Henko,

Ariel, etc.

● Premium Segments such as Surf Excel, Henko, Ariel, etc.

● Mass Premium and Mid Price Segment such as Rin, Mr.White, Tide, and other regional

brands

● Popular Segments such Nirma, Wheel, Chek, 501, etc.

Detergent Market - Consumption

The detergent consumption in India is less in comparison to the other Asian countries. The per

capita detergent consumption in India is around 2.7 kg per year, whereas places like the

Philippines and Malaysia, the per capita consumption is 3.7 kg, and in the USA it is around 10

kgs. The detergent market in India is expected to have a growth rate of 7 % to 9 % per year in

terms of volume. The major players in the detergent market are UniLever and Nirma. The

UniLever dominates the premium and mid priced segment, and the Nirma dominates the low

priced segment.

Detergent Market - Growth Potentials

● The penetration level should be enhanced to enable the market to grow at the rate of 8 to

10 % per year.
 ● The consumer awareness programs should be launched in the rural areas in order to

increase the per capita consumption in such areas.

RESEARCH METHODOLOGY

Research Method

The research was conducted using secondary data like journals, research papers, books, and various

other informational sources. Annual reports of Johnson and Johnson, Procter and Gamble and

Hindustan Unilever for the year 2019-20 were studied for financial analysis, Company policies and

CSR activities. Relevant information was then used accordingly to formulate a formal outcome.

Industry Analysis was purely based on the Porter's Five Forces Model and the industry functions

in India. For market sizing, only 2 widely used products were estimated with price points taken

into consideration.

For the TOWS analysis Company work environment, SWOT Analysis and Market presence were

investigated from the annual reports.

The Marketing Plan was largely based on the TOWS and the suggested strategies.

RESEARCH ANALYSIS AND INTERPRETATION

Industry Analysis
The industry analysis was done using Porter’s Five Forces Model. For business strategists, industry

analysis, commonly known as Porter’s Five Forces Analysis, is a very valuable technique. It is based

on the observation that profit margins differ between industries, which can be explained by an

industry’s structure. The major goal of the Five Forces model is to determine an industry’s

desirability. The analysis, on the other hand, serves as a beginning point for developing strategy and

comprehending the competitive landscape in which a company operates.

The five competitive forces indicate that competition is not limited to existing rivals. Customers,

suppliers, alternatives, and potential entrants are all competitors for businesses in the same industry.

The five competing forces work together to establish the competitive strength and profitability of an

industry. The strongest force (or forces) rule and every industry study and resulting competitive

strategy should focus on this. Short-term variables affecting competitiveness and profitability must

be differentiated from the competitive dynamics that shape an industry’s basic structure. While

these short-term aspects may be tactically important, the focus of the analysis should be on the

industry’s underlying features.

Understanding both the competing dynamics at play and the broader industry structure, according to

Porter, is critical for effective strategic decision-making and the development of a compelling future

competitive strategy. The five forces that determine industrial competition, according to Porter’s

model, are the following:

1. Competitive rivalry - This force investigates the level of competitiveness in the marketplace. It

considers the number of existing competitors as well as what each one can provide. When only a few

enterprises are selling a product or service, the sector is growing, and consumers may easily move to

a competitor’s offering at little cost, then competition is intense. When there’s a lot of competition,

there’s a lot of advertising and pricing wars, which can affect a company’s bottom line.
2. The Bargaining Power of Suppliers - This force assesses a company’s supplier’s strength and

control over the potential to raise prices, lowering profits. It also determines how many raw material

suppliers and other resources are accessible. Suppliers have more power when there are fewer of

them. When a company has several suppliers, it is in a stronger position.

3. The Bargaining power of Customers - This task group investigates consumer power and its impact

on pricing and quality. When there are fewer consumers, they have more power, but when there are

many sellers, consumers can easily switch. When consumers buy modest amounts of things and the

seller’s product is extremely different from that of its competitors’, buying power is minimal.

4. The threat of New Entrants - This force considers how simple or difficult it is for competitors to

enter the market. The easier it is for a new competitor to break into a market, the more likely it is that

an existing company’s market share will be eroded. Absolute cost advantages, access to inputs,

economies of scale, and strong brand identification are all barriers to entry.

5. The threat of substitute products - This group investigates how simple it is for customers to switch

from one company’s product or service to another. It looks at how many competitors there are, how

their prices and quality compare to the firm under consideration, and how much profit those

competitors make, to see if they can cut costs even more. The threat of alternatives is determined by

switching costs, both short- and long-term, as well as the willingness of customers to shift.

Below is the Industry Analysis of the Detergent Market using Porter’s Five

Forces.

● Bargaining power of Suppliers : Very Low

The bargaining power of suppliers in the detergent market is very low as

 Multiple suppliers exist, who provide desired quality of soda wash to these

companies and hence they don’t have any competitive edge. There is no secret

ingredient to make a detergent, it is quite basic hence the number of suppliers

are more. Also the suppliers don't want to bargain because they don't want to

lose on big contracts that are provided by P&G etc., nor are they willing to work

on their product quality. Companies like Nirma produce their own soda ash

hence backward integration which again makes The suppliers have a very low

bargaining power.

● Threat of substitutes: Medium

Any new technology like liquid soap etc. can easily be used as a replacement or Substitute. In

the premium segment, frequency of purchase gets affected as customers are able to pay

premium prices and also tend to spend more on maintenance. Hence they are preferring Dry

Cleaning more which affects the premium segment more. Other alternatives, presumably high

priced, makes this segment highly vulnerable.There is no economical alternative/substitute

which is cheap enough to replace already low-priced detergents, So the threat from substitute

products / alternatives for fabric washing is low.

More people moving to higher segments, and increasing disposable income makes this

segment a little bit vulnerable to alternatives like Dry Cleaning. But still the market is huge

and the whole market cannot move to alternatives, hence the threat is medium and not high.

● Threat of New Entrants: High

In premium range products Entry is difficult as there are difficulties to get premium loyal

customers. But still with differentiated products it is still conquerable. Hence the medium

price segment, E.g. Henko from Henkel entered the premium price segment but then failed

miserably.

Whereas in mid range segment Entry is easy as there are low barriers to entry, As it is an
 FMCG industry it is easy to achieve high economies of scale. E.g. Tide was launched in 2000

,still it was able to get a decent market share. In the low price segment Entry is very easy as

there are low barriers to entry, Economies of scale. In this segment, even a small price

difference can topple markets of a brand. E.g. Ghari launched their business in 1987 when

Nirma was at its peak but later it overtook Nirma.

● Bargaining power of buyers: High

In Premium priced products Any product with a good price difference or differentiated

features will be opted by buyers. Hence price difference does change buyer behavior but

differentiated products also tend to have their own say in the market. E.g. When Ariel came

out with detergents with fragrance flavors, customers switched to that even when Ariel

charged a higher price than surf excel. Whereas in the mid price range segment Due to higher

competition, bargaining power of buyers is usually high. If companies have to resort to offers

and lesser margins then that shows high bargaining power of customers. E.g. Tide generally

attracts customers with “20% extra”, etc. type of offers which shows buyers have good

bargaining power. And in low price Range products More number of players are present,

customers in this segment are very cost sensitive. More offers have to be provided to attract

customers. Buyers also demand quality improvements in products. This shows the very high

bargaining power of buyers. E.g. Nirma, Wheel, Ghari. Ghari offered better quality and

buyers switched to it and Nirma & Wheel had to counter this with various measures.

● Competitive Rivalry: Very High

In Premium price segments, it's High because of easy brand switching. For Tier I and Tier II

cities only and competitive rivalry is high there. Surf Excel, Ariel, Henko. Surf Excel & Ariel

face tough competition from each other, where Ariel offers fragrance, Surf Excel offers a bit

lower price compared to Ariel.In the Mid Price Segment, it's Very high because there are more
 players, no loyalty, and customers switching to different price segments. Tide Plus, Rin,

Super Nirma Blue, Mr. White, etc. Tide faces a lot of competition from Surf as well as Ghari,

Ghari being low priced and good quality. And in Low price segments its Very high as

Customers in this segment, easily switch brands based on small price differences also.

Moreover markets are toppled easily by distribution strategies and promotions. Nirma, Wheel,

Ghari all face fierce competition in this segment based on price, product differentiation, and

distribution strategies.

Conclusion: Industry is Moderately Attractive.

Top Companies in the laundry care Industry

The detergent market in India is divided into three segments – premium, mid-range, and
popular. The premium segment comprises Ariel and Surf; the mid-range segment comprises
Tide, Henko, and Rin; and the popular segment comprises Mr White, Wheel, Nirma and
Ghari. The market share of the detergents in the premium segment is 15%, and that of the
mid-range and popular are 40% and 45% respectively.

These detergent brands are considered organized players in the industry and comprise 60% of
the total market. The remaining 40% of the market is saturated with regional and small
unorganized players. Reports show that India’s per capita consumption of detergent stands at
2.7kg – the lowest in the world.

Before 1985, Hindustan Unilever’s Surf held the number one position in the detergent market
in India. However, when Nirma Chemicals launched a detergent brand called Nirma, catering
to the middle and lower middle class customers, Surf was evicted from its number one
position.

Soon, HLL realized that there were fragments of the market which were untouched by major
detergent players in India and it came up with two low-priced detergents called Wheel and
Rin to cater to the lower middle class group.
When Hindustan Lever, HLL, and Nirma Chemicals began increasing their market share,
Rohit Surfactants, yet another player, launched a detergent brand called Ghari for rural
customers, and middle and lower middle class customers.

Today, Ghari is the market leader in the detergent industry, with a market share of 17.3% and
Wheel is tagging behind closely at 16.9%. Tide is at present at the third position with a
market share of 13.5% and Nirma has less than 6% market share. Ghari has always
maintained affordable pricing, which is why it has managed to become a household name in
India.
To increase its customer base, Rohit Surfactants has spread its distribution network for Ghari
detergent to more states in India. In fact, in the last three years, the company has increased its
reach to 10 more states and it sells Ghari detergent through more than 3,500 dealers.

The detergent industry is worth Rs 13,000 crores and industry players are constantly
improving their products to suit the changing needs of consumers. A few years back, liquid
detergents were almost unheard of; however, today, we witness more and more companies
producing liquid detergents alongside powder detergents and laundry bar soaps.

In the past, consumers in India used to wash clothes by hand but today, with the advancement
of technology, more and more people are shifting to washing machines. Hence, detergent
companies have tweaked their products to enable the washing of clothes in all types of
washing machines - top load, front loading, fully automatic, and semi automatic washing
machines.
In addition, detergent companies have started manufacturing powder detergents in packs of 20
grams, 200 grams, 500 grams, 1 kg, and 2 kg to cater to the needs of those who prefer to buy
in small packets and in bulk.

Today, consumers have a number of products to choose from, which is why companies are
constantly upgrading their products and coming up with better and innovative advertising
campaigns to increase their market share.
List of Top Detergent Brands in India

Wheel

Launched in 1987 by Hindustan Unilever Limited, Wheel is India's top detergent brand. Launched

with the motive of catering to the masses this detergent brand in India was an instant hit especially

with India's low income group. Known for its effective cleaning with least effort, this product today is

the country's most widely used detergent brands both in urban as well as rural India. The introduction

of Wheel came as a welcome solution for the elimination of dirt especially from heavy laundry like

bed sheets, curtains, blankets etc.

Surf Excel

Introduced by HUL to cater to the 'Affluent' or elite-class of India, Surf Excel has evolved to become

synonymous with the word detergent in India. Reputed as being the pioneer of detergents in the

country, Surf Excel over the years, has evolved to become one of the most flexible detergents that is

used to cater to the constantly changing washing needs of the Indian masses. Ranging from whitening

to removal of stubborn stains this top detergent brand in India caters to all kinds of washing

requirements.

Sunlight

Sunlight is India's oldest detergent brand. Sunlight among the top detergents brands in India was

launched in 1888. It was first introduced in the market in the shape of a laundry cake. Since the shape

did not favor the brand much it was later relaunched in the form of a detergent which sold like hot

cakes and gave tough competition to the other detergent brands in the Indian market

Rin
Introduced in 1969 Rin was launched keeping in mind the 'Aspiring' or mid-strategies of Indian

society. Known for providing innumerable benefits at absolutely affordable prices this brand soon

shot up to the top three detergent brands in India.

SWOT analysis

(Hindustan Unilever Limited)

Strengths: Weakness:

● Strong Brand Portfolio • ● Strong Competitors

● Price Quantity & Variety ● High Price of the product

● Solid base of the company ● Substitute Products

● Innovative Aspects • ● Policy of Spending for the Social

● USP’s (Unique Selling Points) Responsibility

● High Quality Manpower ● Financials of the company Lack of

● Reach of the products control in the markets

● Social Responsibility of the company. ● Lack Reliability of data, plan

● Competitive Advantages predictability

● Success of the Slogan – Stains Are ● Lack of Competitive Strength

Good
Opportunities: Threats:

● Changing lifestyle of the people. ● Political effects

● New markets, vertical, horizontal ● Legislative Effect

● Increasing the volume of production ● Environmental effects

● Seasonal Weather & Fashion ● Economic Crisis

influences ● Change in the life style

● Geographical Export & Import ● Introduction of Local Products

● Niche Target Market ● Obstacles faced

● Business and product development ● Increase in production and labour

● Technology Development & cost

Innovations ● Chances of Price War

● Applying tactics & surprise

❖ Strengths:

1. Strong Brand Portfolio

Surf Excel has been available in Indian markets for the last five decades. It has been getting

sold successfully in more than 20 countries including Pakistan, Sri Lanka, and Bangladesh

Etc. Surf Excel has got an excellent Brand Communication; with 'lalitaji', 'dhoondte reh

jaaoge', 'jaise bhi daag ho, surf excel hai na', and is today communicated on the platform of

'Daag achcha hai'. These all helped to retain the Brand name in everyone’s mind.

2. Price Quantity & Variety

The product is available in different quantities, and in different varieties. The varieties of the

product are well described in the section of “About the Product''.

3. Solid base of the company

HUL (Hindustan Unilever Limited) has a solid base all over the world. Some of the features

of the company are listed below. People - 174 000 Employees at the end of 2007 Nationalities

- 21 Nationalities among our top level group of 113 managers. Contributions - €89m

Contributed to communities around the world in 2007. Countries - about 100 Countries in

which we operate. R&D - €868m Invested in R&D world wide. Environment - over 1/3

Reduction in CO2 emissions from energy per tonne of product produced over

4. Innovative Aspects

From time to time the Company has implemented different innovative aspects and have

introduced different varieties of products in the markets. Some of the innovative steps taken

by the company are as follows. The company has introduced Surf Excel Blue, which can be

used for Fabric and colour care. The company has introduced Surf Excel Matic, a detergent

powder designed specially for Washing Machines as it has a low lather formula. Quick Wash
 is a product that saves up to 2 buckets of water introduced for a concept of reducing the water

consumption. Surf Excel Bar, which is a nil mineral detergent bar.

5. USP’s (Unique Selling Points)

The following are the important USP’s of the company, The detergent which is in the market

for the last five decades, Which is sold successfully in more than 20 countries. Detergent

which will reduce the water consumption. The product of the company which is involved in a

lot of social responsibilities.

6. High Quality Manpower

The Company has got high quality Manpower which is playing a fabulous role in ensuring the

growth of the company. The below are the short profiles of the key personnel’s,

Harish Manwani – Chairman.

Mr. Manwani joined the Board of HUL in 1995, responsible for the Personal Products

business. In addition, he held regional responsibility as the Category Leader for Personal

Products for the then Central Asia and Middle East (CAME) Business Group.

Nitin Paranjpe - CEO and Managing Director.

Mr. Nitin Paranjpe joined the Company as a Management Trainee in 1987 after obtaining a

degree in BE (Mech) and MBA in Marketing (JBIMS) from Mumbai. During 2001, he

became the Personal Assistant to the Unilever Chairman in London. On his return to India in

2002, he became the Category Head – Fabric Wash & Regional Brand Director (Asia) for

some Laundry and Household Cleaning (HHC) Brands. Mr. Paranjpe was appointed as the

CEO and Managing Director of the Company in February 2008.

D. Sundaram - Vice Chairman and CFO.

He joined Unilever in August 1996 as Senior Vice President – Finance Central Asia and

Middle East Group with responsibility for Finance, IT and business strategies for Unilever
 companies in the Indian subcontinent, North Africa and the Middle East countries. Mr.

Sundaram was elevated as Vice Chairman of the Company in April 2008.

Gopal Vittal - Executive Director, Home & Personal Care.

For 16 years he worked across both in India and Asia for Unilever, following which he was

the Marketing Director at Bharti Airtel for a period of two years leading Marketing and

Distribution strategy for the group. Effective 1st July 2008 he rejoined Hindustan Unilever

Limited as the Executive Director for Home & Personal Care business.

7. Reach of the products

As per the studies made in the Indian Detergent market, HUL is holding a market share of

40% (detergent cakes + powder). In that Surf Excel is holding 10 to 12% of the total market.

The distribution chain followed by HUL is, Manufacturer-> regional stockist -> retailer ->

customer. Hence it assures the reach of the product in all the Urban & Rural areas.

8. Social Responsibility of the company.

HUL is involved in a lot of Social and Cultural activities nowadays. It will automatically

increase the image of the company and subsequently it will help in increasing its Brand

Image.

9. Competitive Advantages

The product has the following competitive advantages,

• Various varieties of the product.

• Price of the product

• Promotion & Advertising

• Marketing strategies of the company

• Effective and attractive Packaging

 • Effective R&D towards the product

10. Success of the Slogan – Stains Are Good

The Slogan ‘’Stains Are Good’’ is playing a good role in getting the Publicity among the

people for Surf Excel products. The company conducts a lot of Seminars and Cultural

Activities with the Theme of ‘’Stains Are Good’’. It has helped a lot in increasing the Demand

for the product.

❖ Weakness:

1. Strong Competitors

Surf Excel has a lot of competitors in the market. The main competitors of Surf Excel are

listed below;

• Tide Detergent

• Ariel Detergent

• Sun Laundry Detergent

• SA8 - Amway Detergent

• Wisk Laundry Detergent

• OxiClean Stain Remover

• Febreeze

• Rin Detergent Bar

• Downy Enhancer

2. High Price of the product

While comparing with the other Detergents products in the market the price of the Surf Excel

is very high. In Fact some of the products (for Example Tide, Nirma etc...) are available at

half price of the surf Excel.

 3. Substitute Products

For Detergent Powders there are lots of substitute products available in the market. Like

detergent cakes, liquid detergents etc. This will reduce the market demand for the detergent

powders.

4. Policy of Spending for Social Responsibility

The company spends a lot for Cultural & Other Activities in the public other than spending

for product development and research activities. It may result in reducing the growth of the

product and may the product become outdated in the market.

5. Financials of the company

As per the interim financials the company has obtained 20 % growth in the turnover compared

with the previous year. Even though the growth rate is high we should consider that in the

current Competitive Market the expenses for Marketing & Advertisement will keeps on

increasing even though the turnover is increasing. With this 20% growth in turnover the

company may not be able allocate sufficient amounts for Marketing & Advertisement.

6. Lack of control in the markets

As we see the Distribution channel followed by the company is Manufacturer-> regional

stockist- > retailer-> Customer. As per this it is clear that the Regional Stockiest is having all

the powers of a Huge Region. If conflict arises between HUL & the Regional Stockist may

result in losing the whole region market for the product.

7. Lack of Reliability of data, plan predictability

Since the Market for the product is too large and it is spread over a lot of countries, it is not
 possible to get reliable data about the market, demand, and other data which will help in

market development, planning. This will reduce the predictability of the company.

8. Lack of Competitive Strength

The Surf Excel Products have the following defects which are reducing the Competitive

Strength of the product. • No deep knowledge about the local markets. • Local Manufacturers

are more known to the people • High price of Surf Excel Products. • No famous Brand

Ambassadors are there for the company • Lack of control in the supply chain of the product.

❖ Opportunities

1) Changing lifestyle of the people.

The Company can utilize the changing lifestyle of the people for increasing the demand of the

product. By concentrating on customer needs and by giving different kinds of detergents the company

can widen the scope and can increase the demand of the Surf Excel brand products.

2) New markets, vertical, horizontal

Even though the product reaches almost every market there are a lot of untouchable market areas for

the product. It is possible to outsource the distribution channel and increase the reach of products in

the countries. By outsourcing the distribution channel, the company can concentrate in product

development.

3) Increasing the volume of production

The company can concentrate on increasing the volume of production and can try to acquire a high

market share for the product. By increasing the production and market share it is possible to achieve

high demand and a small reduction in price of the product. It will ensure customer satisfaction.
 4) Seasonal Weather and Fashion influences

The fashion in our country is changing day by day. The seasonal weather also has a great influence on

fashion. By change in fashion, change in cloth types also will occur automatically. Surf excel should

be made effectively which will suit the changing cloth material and which will help the people to use

the detergent accordingly with the changing fashion and seasonal weather.

5) Geographical Export & Import

It is possible to concentrate on achieving the new markets inside the country by exporting or

importing the product. By this, the company can produce the product from the low cost countries and

can sell the same in the high profit markets.

6) Niche Target Market

Niche markets are the small markets which the other companies are not concentrating on very much.

It is possible to explore the small market areas to market the Surf Excel brand and try to achieve a

monopoly-like situation. By this the product can get more demand even without making any change

in the price of the product.

7) Business and product development

The company can think about the business development and the product development of Surf Excel

brands by exploiting the increasing population, increasing consumption and other changes in the

global market.

8) Technology Development and Innovations

Technology Development can be introduced and experimented for decreasing the cost of production

and for increasing the quality of the product. New innovations can be introduced for manufacturing

the Surf Excel brands in an environmentally friendly manner which will increase the brand image of
Surf Excel

9) Applying tactics and surprise in new products

The present market trend is introducing a new product with different tactics. It is usually seen that a

real effort is taken to attract the prospective customers and give them a new surprise while

introducing a new product in the market. The Surf Excel can also follow this marketing tactic while

introducing a new variety in the market and can get a sudden boost in the demand of the product at

the time of introduction in the market.

❖ Threats

1. Political effects

Since the margin of a CONSUMABLE PRODUCT is very law. A very minute change in the

price also may effect in a terrific manner. If the government introduces any sort of changes in

tax or if it introduces any new CES, it will not be possible for the company to sell out the

products in the market. They will have no other way than to increase the price of the product.

As because the price is already high, further increase in price will affect the product in a larger

way.

2. Legislative Effect

The chemicals used for the production of Detergents are harmful for the human body &

natural environment. The Indian government till today has not taken any steps to address these

issues. If a mandatory legislation gets introduced it will be really hard for the company to

produce the product as per legislation and it will be hard to survive that.

3. Environmental effects

Detergent contains chemicals that can be harmful to human beings & natural resources. If the
 company does not work out something for making the product environmentally friendly and

produce the product with natural resources instead of chemicals in the coming years it will be

hard for the company to sell out the products in a better way.

4. Economic Crisis

We all know that the whole world is totally affected because of the sudden collapse in the

banking sector in the US. It has affected countries all over the world. The people become very

conservative in spending the money. In this situation in the coming years it will be hard for

the company to retain the products which have a higher price. Even though it has high quality

in the stage of economic crisis the people will look only at the price more than the quality.

5. Change in lifestyle

The lifestyle of the people; mainly working class people, is changing day by day. Because of

the concept of outsourcing, they have started giving the clothes for washing in the laundry

shops and other shops. Some of the professional laundry shops keep their own chemicals for

cleaning the clothes.

6. Introduction of Local Products

The local products are getting introduced in the detergent market. Because the size of the

local companies will be small they can easily concentrate in marketing and distribution which

may reduce the demand for Surf Excel.

7. Obstacles faced

Surf Excel is facing the following obstacles in the market.

• No direct involvement in the distribution chain.

• Unable to sell Surf Excel at a lower cost of its Competitors.

 • Preference to low cost products of the majority of the People in developing countries.

8. Increase in Production & Labour cost

The production cost and the labour cost is increasing in a massive way all over the world. But

because of the increase in cost, it is not possible to increase the price for Surf Excel like a

consumable product. By a slight change, it may result in a huge reduction in demand.

9. Chances for the Price War

The primary goal of every Manufacturer will be to increase the demand for their productions.

Only if there is sufficient demand for the products then only the company can survive in this

competitive market. For this reason if the company tries to reduce the price of the Surf xcel

brands, it may result in Price War in the market. By this the product may go to loss for the

company.

TOWS Strategy
TOWS Analysis is a spin-off of the popular SWOT Analysis. The acronyms TOWS and SWOT stand

for Strengths, Weaknesses, Opportunities, and Threats, respectively. These techniques can be used to

think about the strategy of your entire business, a department, or a team by examining the external

environment (threats and opportunities) and the internal environment (weaknesses and strengths).

TOWS analysis is a tool for creating, comparing, and selecting strategies. It’s not a SWOT analysis

in the strictest sense, and it’s certainly not a SWOT analysis that focuses on threats and

opportunities. This is a common misunderstanding. TOWS could have similar origins. SWOT

analysis is a tool for audit and analysis, while TOWS is a tool for strategy creation and selection. A

SWOT would be used at the start of the planning process, and a TOWS would be used later when

decisions are made. TOWS analysis is a strategic analysis process that entails a systematic and

complete evaluation of external and internal elements that influence the company’s existing

competitive position and growth potential. TOWS analysis is like the more well-known SWOT
analysis, but according to Michael Watkins, the order of the words in the acronym SWOT indicates

that real strategic analysis should be performed in the wrong order. Starting with a Strengths Analysis

is incorrect because managers should first identify all environmental dangers before moving on to

the planning and preparedness processes to protect against these threats.

Between internal and external forces, there is a trade-off. Internal elements include

strengths and weaknesses, whereas external factors include opportunities and challenges.

This aids in the identification of strategic solutions to the following additional questions:

Strengths and Opportunities (SO) - How can you leverage your strengths to seize opportunities?

Threats and Strengths (ST) - How can you use your strengths to protect yourself from real and

potential threats?

Weaknesses and Opportunities (WO) - What opportunities do you have to overcome your

weaknesses? Weaknesses and Threats (WT) - How can you minimise your flaws and stay safe

from threats?

Strategic Action area/ Objective Strategy:

Threat: Environmental effects If HUL launches a product that’s eco-friendly

Weakness: A lot of substitutes and can be of the same efficiency, it will help

customers with a sense of doing right and will

also increase the market.

Threat: Economic Crisis India has more rural areas and they are highly

Strength: Strong Brand Portfolio price sensitive when it comes to detergent,

hence price is an important part in the detergent

market. They should Reduce the price or launch

a different range of cheaper detergent.

Strength: Solid Base for the Company HUL should broaden the targeted sector, it

Opportunity: New Markets should expand its products to the rural areas.

Weakness: High Price of the product The Distribution channel followed by the

Opportunity: Business and Product company is Manufacturer->regional

development stockist->retailer->Customer. As per this it is

clear that the Regional Stockiest is having all the

powers of a Huge Region. If conflict arises

between HUL & the Regional Stockist may

result in losing the whole region market for the

product. They need to get control of the market.

Market Sizing
The process of determining a market’s potential is called market sizing. For organisations intending

to introduce a new product or service, it’s critical to understand the market’s potential. We

synthesis results from previously published research and other data sources using several

secondary market research sources and databases to assist in defining:

1) The size of a market’s entire (or potential) size.

2) The most significant rivals in a market, broken down by category.

3) A target customer’s demographics and profile.

4) The market’s products/services

5) The current market’s most important trends

Estimating the market size is a crucial first step in putting together a business case for any new

product development project. Given the possible return that the market delivers, the quantity of

investment required to be successful must make sense. We can discover crucial elements that need

to be addressed in

downstream development business planning activities by being open about the facts and

assumptions that were utilised to establish a market size estimate. The evaluation of a market’s

potential is known as market sizing. Market sizing, which incorporates market research, is essential

for organisations intending to introduce a new product or service to assess the commercial

possibility.

Given below is the Market sizing for Laundry care Industry.

Assumption:

● 2 cups of detergent used for each wash of (2 ounces) that’s 56.70 grams.

● 2 kg packages run a month for a family of 3.

So,

2 kg package 3 packages
Per head = 865 g per month
It’s a little over 1 kg

Further,

865 g 30 days

1000 g ??

= 34 days

Conclusion:
“Per head 1 kg package lasts a little over 1 month”

Population:

“139 cr is total population”

Urban Area Rural Area

28% is Urban Area 72% is Rural area

-5% is extremely poor
67% (rest of rural area)
So,
Of the population 11 cr 93 cr of total population (67%)

Assuming, Assuming,
Urban area buys mid range & Rural area buys popular products
premium.

40% : 15%
Hence, Hence,
11 cr distributed in 8:3 ratio 93 cr buys Popular Product costing 60
rs per package.
8 cr 3 cr
(mid range) (Premium) 60*12m*93 cr
=100 =180
100*12 m *8 cr = 80*12m*3 cr = 66960 cr
9600 cr = 6480 cr

❖ So the total of all segments is 83,040 cr

Marketing Plan:

A marketing plan is an operational document that details an organization’s advertising strategy for

generating leads and reaching its target market. A marketing strategy outlines the outreach and public

relations activities that will be implemented over time, as well as how the organisation will measure the

impact of these initiatives.

A typical marketing strategy will incorporate the following elements:

1. The business’s marketing objectives should be reachable and measurable – two SMART goals.

SMART stands for Specific, Measurable, Attainable, Relevant, and Time-bound.

2. Present business marketing positioning: An examination of the current situation of the company’s

marketing strategy.

3. Market research entails an in-depth analysis of current market trends, client needs, industry sales

volumes, and forecasted developments.

4. The following is a summary of the business’s target market: Demographics of the target market for

businesses.

5. Marketing activities: A list of all actions related to marketing goals that are scheduled for the

period, together with the deadlines stated.

The marketing plan for the laundry detergent is briefly stated below:

Assuming:

The CEO has asked the marketing manager to introduce a new product of detergent line and reach a target

worth 100 crores in one year.

Pestle Analysis of tide eco:

Political Factors:

The political factors in the Tide Eco PESTLE Analysis can be explained as follows:

Tide strongly believes that word of mouth plays a major role for the success of their organization. The

company has placed themselves among the top players in the detergent industry. Around 40 million

households use Tide detergent across America. With the widespread promotion of the tide pod

challenge the politicians in America raised their concerns against the packaging of the Tide Pods.

They criticized the packaging of the company on the grounds that the product looked like a candy and

displayed their aversion towards the entire concept of teenagers consuming those poisonous pods.

There often have been allegations on the company that whichever country the company enters it

brings with it, the American style of consumerism which they try to spread across the globe. In India

the company has a tough competition with products of HUL in the detergent segment as the economy

wasn’t completely open to outside competitors nor it was investment friendly until the policies

changed.

Economic Factors:

Below are the economic factors in the PESTLE Analysis of Tide:

The detergent market especially in the premium sector is growing at a rapid rate.

The market for liquid detergent is expected to grow at an annual rate of 5%. The market for liquid

detergent would become the size of 39.8 billion at the end of 2025. The company can take advantage

of fast paced growth in the market for laundry detergent. Although the majority of the market share in

the detergent segment is dominated by parent company of tide i.e. Proctor and Gamble, the overall

market is highly competitive. At Tide the products are continuously formulated in order to introduce

innovation and provide superior packaging for the products. In India, with the reduction in the tax

rate of GST for the premium and the middle segment, the gap between the prices of the detergents

from the lower segment to the upper two segments has reduced. This has further increased the
revenue for the products under these segments. Products such as Tide Plus fall under the category of

middle segment.

Social Factors:

Following are the social factors impacting Tide PESTLE Analysis:

In the rural areas especially in India, people started facing certain problems with the usage of locally

manufactured products. These products are usually high in soda ash content and these products have a

very harsh effect on the skin. This has changed the preferences of the consumers in the rural areas

who have now switched to middle segment and high segment detergents such as Tide. Another factor

that has increased the usage of detergents is that the bars dissolve faster. The consumer prefers a

product that lasts for a longer period of time. However, the customers at the top end of the market

usually prefer to use detergent over lower quality bars as they believe that bars take a lot of time and

manual effort in order to wash clothes efficiently. Detergents like Tide possess a better market share

because of the different consumer choices.

Technological Factors:

The technological factors in the PESTLE Analysis of Tide are mentioned below:

The company believes in innovation through the usage of improved technology. In the past, Procter &

Gamble Co. had launched Tide Pods. These pods were small but were highly concentrated liquid

detergent tablets. In order to ensure the success of the product they had invested more than $150

million in the marketing campaign of the same. Also, the sale for detergents such as Tide were

affected mainly due to the increase in the sales of washing machines. The availability of the funds and

massive penetration of the washing machines has forced consumers to switch to middle and higher

segment detergents. Sales personnel and technicians inform consumers about the positive effects of
using Tide which in turn drive the sales of the products.

Legal Factors:

Following are the legal factors in the Tide PESTLE Analysis:

The company has engaged itself in price wars before in order to reduce the competition in the market

and establish a new customer base. In the year 2009 P&G introduced a new product variant of Tide in

order to reduce the sales of Hindustan Unilever’s product variant Wheel. Due to reduced sales HUL,

reduced the prices of Wheel further in order to gain back its market position. The company came

under public scrutiny after the Tide Pod Challenge when eight people died after consuming Tide Pods

which contained dangerous chemicals. Even overexposure to the chemicals contained in the pods

causes irritation on several parts of the body. The detergent companies are required to comply with

the legal laws and they have been constantly discouraged regarding the use of such chemicals in their

products.

Environmental Factors:

In the Tide PESTLE Analysis, the environmental elements affecting its business are as below:

Tide was successful in incorporating sustainable practices and innovation through their disaster relief

campaigns such as Tide Loads of Hope campaign. They believe in the fact that everyone deserves to

wear clean clothes even in their times of crisis. After Hurricane Katrina, Tide introduced the Loads of

Hope program. Their main goal was to empower communities which were suffering through the

negative effects of natural disasters. They provided clean clothes to such communities in the outlying

area.
MARKETING OBJECTIVE

We set 3 goals, including product design, increasing sales revenue, and satisfying customer needs. The

purpose of this marketing program is to build brands. There are a significant number of brands and

construction companies. The products convey the same quality, reliability, and experience. More

consumer purchases brands even buy the premium brand. The best branding is based on a solid product

design concept of the heat and lust of the product. When people have relationships with products, they

will be loyal to the products. Products can activate a group of people who like to do something.

Products cannot do that. Another goal of this marketing program is to increase sales and reach the target

of 50 crores. The sales profit value is significant in business because the profit is the same as the profit

earned. Significant sales growth means enormous profits. Ultimately, customer satisfaction focuses on

what the customer needs, such as contradicting his own needs and desires. This goal tends to impact a

long-term benefit on the Company in the eyes of the customer.

MARKETING MIX

Product: In terms of Product, Tide eco is a product that people can use every day and need not worry

about how it affects the environment and their clothing. There are three different variations of the

product. From a small package which is without Fragrance and a family pack which is available in

different fragrances. The product's main USP is an eco Friendly fabric conditioner.

Price: The Company can adopt several pricing strategies in terms of pricing, and the pricing strategy

will usually be based on corporate objectives. Pricing should consider the factors that contain

competition, company objectives, target group, and willingness to pay. Firstly, Tide eco will be in

Competition Pricing to go into the market. Competitive Price sets the Price compared to competitors. Of

course, the firm has three options, and this will go down in Price, comparable prices, or higher prices.

This pricing strategy will attract a number of the customers who use the competitors' products to change

to employ our products. Another pricing strategy we use is Psychological Price.The trader here will look

at the psychology of Price and price structure within the market area. As detergent is very price sensitive

but also is a loyalty product for people who know about fabric health these two strategies for pricing will
be adopted.

Place: Detergent suppliers are department stores, retailers, caravan stores, and co-operative shops. The

product is made available in cities, urban areas, and rural areas. It will be Introduced in urban areas as

people are more aware about climate change and would like to switch to something eco-friendly. Slowly

we will expand into rural areas as the market is bigger in rural areas compared to urban areas.

Promotions: We would promote the product on more of Social media as a lot of our new generations use

social media and they are well aware of the environmental crisis which will make them want to shift to a

more sustainable product which does not bring harm to our natural habitat.

MARKETING BUDGET:

PARTICULARS AMOUNT

Advertisement Expense (TV, OTT, News Papers, Hoardings, Pamphlets and 6 Crore

Brochures)

Digital Media 5 Crore

Research & Development 7 Lakhs

Employees Cost- Sales Men/Women 3 crores

Raw Material 6 crores

Selling and Distribution Cost 7 crores

Miscellaneous 1 crore

Total 30 Crores
Timeline:

Week 1 Week 4 Month 2 Month 3 Month 4 Month Month

5 6

Product Market Budgetary Discussion Promotional Preparati Testimo

Ideation Research Discussions with senior plan, Initial on for nials
and , Product management release launch, and
Product Costing campaign, advertis Review
Developme Assess ing, s for
nt, Beta reviews sales betterm
testing from beta target. ent.
testers.

CONCLUSIONS

The demand for detergent products in India is on the rise due to the growing awareness towards
health and hygiene coupled with changing lifestyles of people as well as a considerable increase in
per capita disposable income. At present, people are more concerned about sanitization in general
than ever before. The critical development of the homecare items advertised is likewise ascribed to
developing mindfulness among purchasers about close to home wellbeing and cleanliness. Customers
are spending more on these items than ever. The unmistakable utilization of cleansers in all the
homecare items gives persistent push to the interest in cleansers. Mounting awareness among people
about health and hygiene as well as considerable increase in per capita disposable income has boosted
the sales of homecare products in India. Also, the advent of e-commerce websites, extensive
marketing campaigns by national players and growing penetration of multinational players is further
expected to support the growth of detergents market in India.

The ongoing COVID-19 pandemic has altered the status of the detergents industry. The outbreak has
distorted operational efficiency and disrupted the value chains due to the sudden shutdown of national
and international boundaries, thereby impacting the demand for detergents. Concerns regarding the
spread of various diseases such as coronavirus have increased awareness among the consumers to
keep their homes and surroundings clean and sanitized. This has substantially maintained the demand
for detergents in the Indian market. Further, as the economies are planning to revive their operations,
the demand for detergents is expected to rise globally in the coming months. Further, significant
investments by prominent companies in the development of advanced and organic products is, yet,
another factor supporting the market growth.

Market Insights
Rising Inclination of Consumer Over Super Premium Detergents than Ordinary Regular Detergents
The shift in living standards backed by rising disposable incomes in the middle-class populace has
escalated the demand for superior quality premium detergent products. Premium and super premium

detergent powders which are specifically designed for front and top load washing machines have fine
granules which can penetrate into the fibers and clean the fabrics while producing less lather and
consuming less volume of water. The burgeoning ownership of washing machines in the Indian
households has driven a significant consumer base to try new premium and super premium detergent
products and forged consumer loyalty for these premium products. Thus the evolving consumer
preferences for enhanced and super premium detergent powders in India is likely to provide untapped
opportunities for local as well as global detergent manufacturers in the forecast period.