Detergent Market in

India

Prepared By:
Janet Jose
Indian Detergent Market

• Current Market Share(2019): 42827.4 Crores

• Total Volume(production): 1,515 thousand metric ton
• Compound Annual Growth Rate(CAGR): 9%
• Washing Machine Penetration: - 13% in 2018.
- up to 21.8% by 2026.
• The majority proportion of Indian market lies in rural area’s
• Rural to Urban Distribution: - Urban: 27.82%
- Rural: 72.18%
• The main Products sold in this market are the detergent bars, detergent
powder and liquid detergents.
 Poster’s Five Forces Model

Very Very
Medium High High
Low High
Bargaining Threat of Threat of new Bargaining Competitive
power of Substitutes Entrants power of buyer Rivalry
Suppliers Reason: Reason:
- Any new technologies
Reason: Reason:
Reason: - Entry is easy as there - Due to high - Its Very high
like liquid soap, etc. can
- Multiple suppliers are no barriers of competition bargaining because there are a
easily replace the
exist, who provide entry. power of buyers is greater number of
existing players or
desired quality of - Being an FMCG usually high, the players, no loyalty
brand.
soda wash to these industry it is easy to companies must resort and customer switch
- Many players can also
companies and hence achieve high to offers and lesser to different price
use alternatives like dry
they don’t have any economics of scale. margins which shows segments easily has
cleaning but still the
competitive edge. high bargaining power. high price sensitive.
market is huge and the
- Suppliers don’t
whole market cannot
want to lose huge
move to alternative
contracts provided by
hence the threat is
P&G etc.
medium.
 SWOT Analysis Infographics

Strengths
• Strong Brand Portfolio
• Price Quantity & Variety
• Solid base of the company
• Innovative Aspects
• USP’s (Unique Selling Points)
• High Quality Manpower
Weaknesses
• Strong Competitors
• High Price of the product
• A lot of Substitute Products
• Lack of control in the markets

S
Reach of the products
W
• • Lack Reliability of data, plan
• Social Responsibility of the company. predictability
• Competitive Advantages • Lack of Competitive Strength.
• Success of the Slogan – Stains Are
Good.

Opportunities
Threats
O T
• Changing lifestyle of the people.
• New markets
• Increasing the volume of production • Legislative Effect
• Seasonal Weather & Fashion • Environmental effects
influences • Economic Crisis
• Geographical Export & Import • Change in the lifestyle
• Niche Target Market • Introduction of Local Products
• Business and product development • Increase in production and Labor
• Technology Development & Cost
Innovations • Chances of Price War.
 TOWS Strategy
SI Strategic Action area/ Objective
1. Threat: Environmental effects
Weakness: A lot of substitutes
2. Threat: Economic Crisis
Strength: Strong Brand Portfolio
3. Strength: Solid Base for the Company
Opportunity: New Markets
4. Weakness: High Price of the product
Opportunity: Business and Product development
TOWS Strategy
If HUL launches a product that’s eco friendly and can be of
same efficiency, it will help customers with a sense of doing
right and will also increase market.
India has more rural areas and they are highly price
sensitive when it comes to detergent, hence price is a
important part in detergent market. They should Reduce
the price or launch a different range of cheaper detergent.
HUL should broaden the targeted sector, it should expand
its products to the rural areas.
- The Distribution channel followed by the company is
Manufacturer->regional stockiest->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 Stockiest may result in losing the whole
region market for the product. They need to get control of
the market