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Detergent Market in India
Detergent Market in India
Powder
Bars
Liquid
195
9
196
9
198
7
198
8
199
1
200
0
13.2
34
12
18
22.8
HUL
Gha
ri
P&G
Nirm
a
40%
30%
20%
15%
10%
0%
Brands:
Premium
Surf, Ariel
Mid Scale
Economy (Mass)
R i n , Ti d e
Ghari,
Nirma,
Wheel,
Fe n a
Threat
of New
Entrants
Porters
Five
Forces
Model
Bargaini
ng
Power
of
Buyers
Competit
ive
Rivalry
Threat
of
Substitu
tes
Bargaini
ng
Power
of
Supplier
s
Very Low
Low
Mediu
m
High
Very
High
High
High because 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
Very High
Very high because
more number of
players, no loyalty,
and customers
switching to
different price
segments.
Tide Plus, Rin, Super
Nirma Blue, Mr.
White, etc.
Tide, faces lot of
competition from
Surf as well as
Ghari, Ghari being
Very High
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
Very Low
Multiple suppliers
exist, who provide
desired quality of
soda ash to these
companies and hence
they dont have any
competitive edge.
Moreover, suppliers
do not want to lose
huge contracts with
behemoths like P&G
and hence they have
low bargaining power
E.g. Tide
Very Low
Many suppliers of
soda ash
High quality of soda
ash is not required
and it can be
procured from any
supplier.
Companies like Nirma
produce their own
soda ash (Backward
Integration)
Hence suppliers have
very low bargaining
power.
High
Entry is easy as
there are low
barriers to entry
As it is 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
Very High
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 the it overtook
Medium
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 market.
E.g. When Ariel came
out with detergents
with fragrance flavors,
customers switched to
that even when Ariel
High
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
High
In premium segment,
frequency of purchase
gets affected as
customers able to pay
premium prices 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.
Medium
Any New technologies,
like liquid soaps, etc.
can easily replace the
existing players/
brands.
More people moving to
higher segments, and
increasing disposable
income makes this
segment little bit
vulnerable to
alternatives like Dry
Cleaning. But still the
market is huge and
the whole market
cannot move to
Low
There is no economical
alternative/substitute
which is cheap enough
to replace already lowpriced detergents.
So the threat from
substitute products /
alternatives for fabricwashing is low.
Competitive Advantage
Differentiation
Differentiati
on
Target
Generic
Strategi
es
Lower Cost
Cost
Leadership
Target
M a r ke t
S c o p eBroad
Narrow
Porters
Focus
Differentiati
Cost Focus
on Focus
VS.
Surf Excel
Ariel
Surf Excel
Quickwash
Surf Excel
Liquid
Wash
Surf Excel
Easy Wash
Surf Excel
Easy Wash
Surf Excel
Matic
Surf Excel
Liquid
Wash
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.
Ariel 24
Hour
Fresh
Ariel
Complete
+
Ariel
Color and
Style
Ad
Ad
Daag
Achhe
Hai
Maa Ke
Haathon
Jaisi
Safai
Ad
#ShareTheLoa
d
Surf Excel
ArieL
S Segmentation
S Segmentation
T Targeting
T Targeting
P Positioning
P Positioning
2kg
1kg
500gm
100gm
60gm
25gm
Rs405
Rs210
Rs115
Rs20
Rs10
Rs5
2kg
1kg
500gm
100gm
60gm
25gm
Rs437
Rs240
Rs130
Rs40
Rs20
Rs10
Broad
Target
on
Cost
Leadership
Narrow
Target
Market Scope
Lower Cost
Focus
Differentiati
Cost Focus
on Focus
Differentiati
on
VS.
Nirma
Wheel
History
Nirma
Wheel
Nirma
Detergent Cake
Super Nirma
Detergent
Super Nirma
Detergent
Cake
Active Wheel
Detergent
Lemon & Orange
Ad
Ad
Sabki
Pasand
Nirma
Super
Nirma
Se Mile
Super
Safedi
Ad
Haath
Naa
Jalein
AdNimbu Ki
Shakti Aur
Hazaro
Phoolo Ki
Khusboo
Nirma
Wheel
S Segmentation
S Segmentation
T Targeting
Nirma is spread across a huge market
having an excellent distribution
channel.
Low Income and rural families.
T Targeting
Low income and rural people
Customers wanting fragrance
P Positioning
Nirma positioned itself as an
affordable product between the
people who could not afford
P Positioning
Positioned as a house-hold chore
Powerful detergent with fragrance.
Nirma
Wheel
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
thats 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
Broad
Target
on
Cost
Leadership
Narrow
Target
Market Scope
Lower Cost
Focus
Differentiati
Cost Focus
on Focus
Differentiati
on
VS.
TIDE
GHARI
Ad
Chaunk Gaye?
AdPehle Istemal
Tide
GHARI
S Segmentation
S Segmentation
T Targeting
T Targeting
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.
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 doesnt
impair Kismat ki rekha.
Broad
Target
Narrow
Target
Market Scope
Lower Cost
Cost
Leadership
on
Differentiati
on
Focus
Differentiati
Cost Focus
on Focus
Competitive Advantage
Differentiati
Broad
Target
Narrow
Target
Market Scope
Lower Cost
Cost
Leadership
on
Differentiati
on
Focus
Differentiati
Cost Focus
on Focus
(with respect to
Industry)
Competitive Advantage
Differentiati
Broad
Target
Narrow
Target
Market Scope
Lower Cost
Cost
Leadership
on
Differentiati
on
Focus
Differentiati
Cost Focus
on Focus
High Quality
Low Quality
Low Price
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]
Porters Five Forces Model and Porters Generic Strategies (multiple sites)
http://consumeraffairs.nic.in/WriteReadData/userfiles/file/DetergentPowders.pdf
The End
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