DETEREGENT

BY:- GAURAV KUMAR15DM013Comprehensive Market, Environment and Situational Analysisof DETEREGENT Industry.

India is around per capita 2.7 kg per year

Philippines and Malaysia, the per capita consumption is 3.7 kg

USA per capita 10kg per year

Consumption

The detergent market in India is expected to have a growth rate of 7 % to 9 % per year in terms of volume.HISTORY :-1959 HLL Introduce surf1969 launched Nirma.1987 Nirma become market leader1988 HUL introduce WHEEL2000 WHEEL become market leaderEarly 2012 Ghari become market leader.

Frequency of buying.Prefered Quantity

Market share

Scope of Study :-This study focuses on the growth of Detergent industry.

Analysis of market leader Ghari

Challenges for Ghari in future

Leader:- Ghari detergent.Kanpur based company Rohit surfactants private limited (RSPL)

Founded in 1987

Market share 17.3%

Annual volume growth rate :-10 %

Turnover around 3000 crore

Performance of Ghari detergent :-

StrategiesSelection of specific geography initial to succeed

Low pricing strategy

Geographical expansion (southern part of country)

Innovative way of advertising

SWOT Analysis of GhariStrengthS1:- Market leader of detergent in india

S2:- Strong reach to the rural consumer

S3:- The tagline Pehle istemaal kare fir wishwaas kare has struck a chord amongst the price-sensitive mass market

S4:- High push by retailers and high word of mouth amongst consumers

Weakness :-W1:- Limited export market as compared to international brandW2 :- Unable to completely penetrate in premium segment because of imageW3 :- Quality is not superiorOpportunity :-O1:- Entered western & southern India recently where lies a huge market opportunity

O2:- Further penetrate the rural market by collaborating with various NGOs.

Threat :-T1:- Low profit margins in detergent sector

T2:- Threat from existing and new players in the market

Product Quality

Features

Brand name

Packaging sizes

PriceThe price of Ghari detergent comes at a price less than Tide,wheel,Ariel and surf excel.

Affordable price

Ghari provides a profit margin of 9% to its dealers compare to competitors which are providing 6-7% in the same segment.

Place Before going national which would have spread its resoures very thin,RSPL focused on Uttar Pradesh to begin with which has a population of 167 million accounts for over 12% of the countrys FMCG sales.

It focised on developing an intense distribution network to reach the customers effectively ,which is evident from the fact than out of 3000 dealers in india, 900 dealers are in UP and 25 of them are in Kanpur alone.it has almost 50% of its manufacturing units in UP.Ghari now has some 21 units , 15 of which were added since 2006.With the company now looking to enter more markets,especially in southern india, at least four most plants are expected to be set up as early as possible.

Promotion

RSPL has attempted to prove that you can be innovative without splurging and hiring anyone from IIMs, either .Ghari spends under 2% of sales on A&P-as against 12-14% spent by its MNC peers-which helps it sustain its low margin high volume strategy

All advertisement are centered on the tag line pehle istemaal karein fir vishwaas karein (use it and then believe it) which encourages trial and prompts repeat purchases.

The innovate way of promotion as special train the Ghari detergent express b/w lucknow to guwahati in 2008

BCG MATRIXunder bcg matrix analysis tool Ghari detergent comes under star category as the detergent market growing continuously and the market share of Ghari detergent is high.

COMPETITOR ANALYSIS:-Challenger:-wheel

Prouct of HULMarket share 16.9%Strategies of wheel:-Excessive advertising and marketing.

Investment in innovation and product quality.

Resist change in price.

Swot analysis of wheel:-

Strength:-S1:- Effective distribution system of HulS2:- Effective cleaning with less effortS3:- Bollywood stars as brand Ambassadors (salman khan)Weakness:-W1:- People in rural area still prefer low frills brands as this is slightly higher priced

Opportunity:-O1:-Further promotion campaigns to penetrate into the unorganized rural Indian marketQ2:-Smaller packages to tap rural MarketThreats:-T1:- Competition from local players in the market.T2:- Price sensitive market segment.(as other competitors)

Follower :-TIDE

Prouct of P & GLaunched in 2000Market share of 13.5%Maximum variants

StrategiesInitially price leader strategyLater reduced price strategy

Nicher: ArielProuct of P & GLunched in 1991Makert share :- around 6%

StrategiesPremium priced productDifferent variantsPositioning

Porter's five force model:-

-Rivalry among existing competitorsThe major competitors are wheel and nirma in the popular segement and surf and tide in the overall market.Hul gives tough competition in the detergent market as it has one product for each segement viz .surf (premium segement),Rin(mid-scale) and wheel (popular).Ghari competes mainly on its affordable price, target market segment ,distribution reach and novel innovative and effective promotional tactics.Threat of new entrants:-As Ghari is not very high quality product, entry of detergents with better quality but affordable pricing can be a serious threat.Entry is easy as there are low barriers of entry in the FMCG sector and economies of scale exist here.

Threat of substitute products :-In todays fast life, even women do not have the time and patience for manual washing of clothes.This is the age of highly innovative washing machines .Ghari has a bucket-wash detergent which can be threatened by sophisticated detergents meant for effective as well as gentle washing of clothes in washing machine.Bargaining power of suppliers :-Suppliers tend to have a low bargaining power as Ghari is not of a very superior quality, and the basic ingredients are easily available since there are numerous suppliers in the market, switching costs for the raw materials is also not very high

Bargaining power of buyers:-buyers do possess a strong bargaining power as Ghari is the major contributor to the turnover of RSPL (it ended fiscal 2012-13 with turnover of 3,437 crore Ghari contributed 3,183 crore), mostly buyers have full information about the products and market even in rural area, products are more or less undifferentiated in terms of features (major distinguishing factor is the price) and the switching costs are low (Ghari is prices at 10% premium overwheel and Nirma at RS 35 a kg).

Conclusion:-

Company performing well in the market as it sales & turnover continuously increase.

Company now expanding it market to southern part for which company setup four new plant.

Ghari major drawback is related to quality ,So company has to introduce a new product line which having quality similar to Ariel & surf.