CASE STUDY -

GHARI DETERGENT

PRESENTED BY –

SURAJ MISHRA

ASM – DUROFLEX PVT.LTD

MUMBAI

8356815001

05/05/2020 1
 EVOLUTION OF DETERGENT INDUSTRY IN INDIA

1957

• The first Indian factory to manufacture synthetic detergents set up by Swastik Oil
Mills in Wadala, Mumbai

1960

• 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 Mills and Hindustan Lever establish themselves in
the business. The latter even begins exporting to Russia.

1969
05/05/2020 2

• Nirma, HUL's future nemesis, is born.

 EVOLUTION OF DETERGENT INDUSTRY IN INDIA

1975

• 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 Bangalore (which also
makes Mysore Sandal soap).

1983

• 25 years after the first domestic factory was established, synthetic detergents only 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%.

1985
05/05/2020 3

• Nirma evicts HUL's Surf from the pole position in the detergents market.
 EVOLUTION OF DETERGENT INDUSTRY IN INDIA

1987

• Brothers Muralidhar and Bimal Kumar Gyanchandani launch Ghari, which will eventually
come to rival the two giants in market share.

2000

• In 1988 HUL introduces Wheel to take on Nirma. HUL wins the battle. Nirma falls to
second place.

2012
05/05/2020 4

• Ghari overtakes HUL

 WHAT IS DETERGENT, SOAP & SODA
 DETERGENT :- A CHEMICAL LIQUID OR POWDER THAT IS USED FOR CLEANING THINGS
IS CALLED DETERGENT.

 SOAP :- SOAP IS A SALT OF FATTY ACID USED IN A VARIETY OF CLEANING AND

LUBRICATING IS CALLED SOAP. SOAP IS CREATED BY MIXING FATS AND OILS WITH A
BASE OPPOSED TO DETERGENT WHICH IS CREATED BY COMBINING CHEMICALS
COMPOUNDS IN A MIXED. HUMAN HAVE USED SOAP FOR CLEANING MILLENNIA.

 SODA :- WATER THAT HAS BUBBLES IN IT AND IT USUALLY USED FOR MIXING WITH
OTHER DRINKS.

05/05/2020 5
 BRAND STORY :-

 Company started by Murlidhar gyanchandani & Bimal gyanchandani.

 Ghari detergent brand dates back to 1987 and is a product of Rohit Surfactants Pvt. Limited (RSPL), a
Kanpur based conglomerate.
 Since starting, the brand has fought off the competition from players like Nirma and Wheel (HUL offering).
 It became the largest player in India detergent market by gaining market share of 17.3% and overtook
Hindustan Unilever Limited (HUL) brand Wheel.
 RSPL has positioned Ghari detergent brand as a low-priced brand for lower middle class families.
 It targets the household women who are seeking cleaning at affordable pricing.
 Tagline: Pahle istemal karein fir vishwaas karein (Use it and then believe it)
 This tagline has been made hugely popular and people immediately connect it with the brand Ghari
Detergent.
05/05/2020 6

 It has helped Ghari in not only communicating its credibility as a product but also achieving high brand
recall value.
 Ghari has spread its distribution network to more states now and directly reaches rural markets, which is its
biggest audience. It has More than 34 manufacturing units, 25 of which were added after 2000.

 Ghari is for common man and usually it targets household wives.

 To live in that spirit Ghari brand has avoided using and celebrity to endorse it unlike wheel (endorsed by
Salman Khan ), Rin (Kajol), and Ariel Oxybin (Kiran bedi).

 At present Ghari detergent brand ambassador super star Mr. Amitabh Bachchan.

 This is the position of business man at 75th rank in 100 Businessman.

 3500++ Dealers and more than 1 million outlets

05/05/2020 7
 MARKETING AND BRANDING
STRATEGY
FOLLOWING NIRMA’S SUCCESS STORY

 GHARI USED NIRMA’S BOTTOM OF THE PYRAMID APPROACH TO CATER TO A LARGE SET OF CUSTOMERS.

 IT WAS ABLE TO ACHIEVE MARKET SHARE WITH THE DETERGENT POWDERS WHICH WAS FROM MARKET EXPANSION.

 THROUGH LOW COST PRICING, IT SWITCHED USERS FROM LOOSE-PACK DETERGENTS TO BRANDED ONES.

GEOGRAPHICAL CONCENTRATION

 GHARI FOCUSSED ON NORTHERN INDIA AND ALSO SETUP THEIR PRODUCTION PLANTS IN UTTAR PRADESH (U.P.).

 UP, WITH POPULATION OF OVER 167 MILLION (HIGHEST AMONGST STATES), ACCOUNTED FOR OVER 12% OF THE
COUNTRY’S FMCG SALES.

 THE NEARBY MARKETS OF BIHAR, MADHYA PRADESH AND PUNJAB ALONG WITH UP COMPRISED ONE THIRD OF THE
TOTAL CONSUMER PRODUCTS MARKET IN INDIA.

 GHARI WAS SUCCESSFUL IN PENETRATING AND CAPTURING THESE MARKETS WHERE IT CURRENTLY HAS OVER 3500
DEALERS.

05/05/2020 8
 MARKETING AND BRANDING STRATEGY
LOWER PROFIT MARGINS

 USUALLY IN INDIAN DETERGENT INDUSTRY THE MANUFACTURERS KEEP PROFIT MARGINS OF 12-13% WHILE RSPL CURTAILED
ITS MARGINS TO JUST 9%.

 THIS SACRIFICING OF MARGINS FOR MARKET SHARE HELPED GHARI IN GAINING CUSTOMER BASE RAPIDLY AMONG PRICE-
SENSITIVE MASS MARKET.

WORD-OF –MOUTH PROMOTION BY DEALERS

 INCENTIVE TO DEALERS: GHARI PROVIDED A PROFIT MARGIN OF 9% TO DEALERS COMPARED TO ITS COMPETITORS WHICH
SHARED JUST 6-7% WITH THEIR DEALERS.

 THIS INCENTIVE MECHANISM COUPLED WITH A HUGE DEALER BASE HELPED GHARI IN PUSHING SALES WHILE MAINTAINING
LOW PRICES.

05/05/2020 9
 BRANDING AND PROMOTION
 MARKETING AND PROMOTIONAL EXPENSES JUST 2% OF ITS SALES.
 SOME OF THE PROMOTIONAL ACTIVITIES UNDERTAKEN BY GHARI INCLUDE:

GHARI DETERGENT EXPRESS

 THE GHARI DETERGENT HAS TAKEN THEIR BRAND TO THE TRAINS BY STARTING PUTTING THE
ADVERTISEMENTS INSIDE THE BOGIES.
 CONSIDER TRAINS TO BE A GOOD MEDIUM TO CREATE BRAND AWARENESS BY CONNECTING TO
THE RURAL AUDIENCE AND HAVE SELECTED THE TRAINS THAT RUN THROUGH 3-4 STATES.

ROADSIDE SHOWS AND EXHIBITIONS

 THE COMPANY ALSO USED PLATFORMS LIKE MAGIC SHOWS AND ROADSIDE EXHIBITIONS TO
REACH OUT TO ITS CUSTOMERS IN SMALLER TOWNS AND CITIES.
 THE SUCCESS OF THESE CAMPAIGNS GAVE THE BRAND GOOD VISIBILITY IN CITIES SUCH AS
ALWAR, INDORE, JAIPUR, KOTA, ETC.
05/05/2020 10
PROMOTIONAL ACTIVITIES

05/05/2020 11
 GHARI DETERGENT HAS GONE TO ADVERTISE IN TRAIN
 THE FIRST TRAIN CAMPAIGN WAS LAUNCHED IN 2008 AND WAS CALLED THE
‘GHARI DETERGENT EXPRESS’. 
 THAT TRAIN CAMPAIGN RAN BETWEEN LUCKNOW AND GUWAHATI FOR TWO
MONTHS. 
 THEN IT ADVERTISED IN PUSHPAK EXPRESS AND SWARNA JAYANTI EXPRESS.
 COMPANY IS GIVING TV ADS ALSO ON VARIUS CHANNELSS
 GIVEN AD ON :DOORDARSHAN DURING ‘RAMAYAN’ TELECOST WHICH WAS
SUPER HIT.
 MEGASTAR SHAHENSHAH OF BOLLYWOOD AMITABH BACHCHAN & YEH HAI
MOHABBATEIN ACTRESS DIVYANKA TRIPATHI DOING AD FOR GHARI
DETEREGENT NOW.
05/05/2020 12
LATEST AD WHICH IS CLAIMING NO.1
BRAND

05/05/2020 13
13 G 75 G 155 165 500 750 1 KG 1.5 2KG 3KG
G G G G KG
05/05/2020 14
PRODUCT CATEGORY OF RSPL
FOOTWE
AR

REAL FMC DAIRY

PRODUCT
G
ESTATE
S

RENEWA
BLE
05/05/2020 15
ENERGY
 PRODUCT DETAILS

FMCG
RENEWABLE ENERGY
GHARI CAKE, POWDER
FOOTWEAR SOLAR POWER(proposed)
XPERT DISH BAR, ULTRA GEL
RED CHIEF WIND POWER 50.1 MW
UNIWASH DETERGENT POWDER
VENUS TOILET SOAP

DAIRY PRODUCT
REAL ESTATE PROJECT NAMASTE INDIA MILK
NIMMI BUILDTECK PANEER
GHEE

05/05/2020 16
 COMPETITORS IN MARKET
• THE INDIAN DETERGENT MARKET HAS ALWAYS SEEN A SUBSTANTIAL GROWTH AND IS EXPECTED TO
REACH INR 49067 CRORE (BETWEEN 2020-2025) WITH A COMPOUNDED ANNUAL GROWTH RATE (CAGR)
OF MORE THAN 9%. (BASED ON A SERVAY – FEB 2020)

05/05/2020 17
05/05/2020 18
GEOGRAPHICAL PRESENCE

05/05/2020 19
 Uses

DETERGENT Daily
Ulternate
5%1%

CONSUMPTION
Weekly
 INDIA IS AROUND PER CAPITA 35% Monthly
2.7KG PER YEAR Monthly Weekly
59% Ulternate
 PHILIPPINS & MALASIYA PER Daily

CAPITA 3.7KG

 USA PER CAPITA 10KG

05/05/2020 20
DETERGENT MARKET SHARE
USES %
POWDER BAR

33%

67%

05/05/2020 21
NETWORK – GHARI DETERGENT

05/05/2020 22
 INDIAN DETERGENT MARKET LANDSCAPE
MARKET SHARE % : Source - Nielson 2020
JYOTHI LABORATORIES &
OTHERS
14% GHARI
24%
NIRMA
3%

P&G
18%

HUL
41%
05/05/2020 23
 RELATED INFORMATION -
 FISCAL 2017-19 : GHARI ALONE CONTRIBUTED 3,700 CRORE TO “ RSPL”

 AND IN 2017-18 TOTAL TURN OVER WAS 5,785 CRORE OF “RSPL”

 OVERALL HUL TOTAL TURNOVER IS MORE THAN 17,000 CRORE IN LAUNDRY

MARKET WITH A 41% SHARE

SOURCE : BCCL 2020 & NIELSON 2020 TILL FY 2017-18

05/05/2020 24
 Last 10 years turnover of RSPL Group
7000

6000

5000

4000

3000 5785
5568 5574
5140
4579
2000 3870
3053
2275
1000 1950
1618

0
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Last 10 years turnover of RSPL Group 05/05/2020 25

 MARKETING MIX (4 PC’S)
• QUALITY • AFFORDABLE PRICE
• FEATURE • LESS THAN OTHER
• BRAND NAME BRANDS
• PACKAGING SIZES • MARGIN OF 9% TO
DEALERS

PRODUCT PRICE

PLACE PROMOTION • SPEND 2% OF

• FIRST LOCAL BIG FMCG
MARKET SALES IN
• MORE THAN 50% DEALERS PROMOTION
NEAR TO MANUFACTURING • TRAIN AND TV ADS
UNIT • ATTRACTIVE TAG
• BIG SETUP IN PAN INDIA LINE
FOCUS IN SOUTH MARKET
05/05/2020 26
 SWOT ANALYSIS
• NOW MORKET LEADER
• LIMITED EXPORT
• STONG REACH IN RURAL
MARKET
CONSUMER • NOT IN PREMIUM
• NICE TAG LINE TO ATTRACT
SEGMENT
CONSUMERS • WEAK IN SOUTH
• GOOD BRANDING BY TV AND
MARKET
PRINT MEDIA
• AFFORDABLE PRICING
• GOOD WORD OF MOUTH AMONGS
CONSUMERS STRENGTH WEAKNESS
• Msales Mobile app.

THREATS OPPORTUNITY

• LOW PROFIT MARGIN IN • ENTERED WESTERN &

DETERGENT SECTOR SOUTHERN MARKET
• COMPETITION WITH PATANJALI • COLLABORATING WITH
DETRGENT VARIOUS NGO’s FOR
• THREAT FROM OTHERS AS ALL NEW MARKET
ARE STRONG IN FINANCE I.E. P&G, • ONLINE PLATEFORMS
05/05/2020 27
HUL
GIVING A POSITIVE MESSAGE : पहले इस्तेमाल करें, फिर
विश्वास करें.........

05/05/2020 28
CONNECTING TO SOCIAL ACTIVITY- स्वच्छता अभियान

05/05/2020 29
 CONCLUSION
 RSPL GROUP IS STRONG NOW AND GIVING COMPETITION TO HUL & P&G.
 RSPL IS DIVERSIFIED AND HENCE PROVIDING MORE PRODUCTS AND MAKING
CUSTOMERS.
 PRESENTED PAN INDIA SO BRAND AWARENESS IS GOOD AMONG CONSUMERS
 BIT WEAK IN SOUTH BECAUSE OF HINDI BRAND NAME AND IN SOUTH MANY BRANDS
ARE AVAILABLE SINCE LONG TIME.
 PROMOTION PLATFORM IS GOOD LIKE APPOINTED BRAND AMBASSADOR BIG B.
 COMPANY PERFORMING EVERYWHERE SO GENERATING GOOD REVENUE.
 RSPL HAS TO LAUNCH PRODUCTS IN HIGHER SEGMENT ALSO SO CAN CATER
PREMIUM GRADE MARKET TOO.
 EXPORT BUSINESS ALSO HAS TO INCREASE. ONLINE MARKET THEY HAVE COVERED
AND IT’S A GOOD STRATEGY.
05/05/2020 30
 LOCAL PLAYERS ARE ALSO THERE SO HAVE TOBE AWARE FROM OTHER BRANDS.
05/05/2020 31