Detergent Market in India

Indian Detergent Market Landscape

Current Market Size (Organized Detergent Market) 2015:
Rs.15,000 Crore
Total Volume 2013 (Production): 1.9 Million Tonnes
CAGR (2012-2015): 11% approx.
Washing Machine Penetration in India: 8.8%
Indian Population Division:
Urban : 33%
Rural : 67%
Households Owning Washing Machine:
Urban : 27.5% of all urban households
Rural: 0.6% of all rural households
Source: Market Research Report on Detergent Industry in India by Niir Project Consultancy
Services (NPCS)

Indian Detergent Market Landscape

Deterge
nt

Powder

Bars

Liquid

Indian Detergent Market Landscape

Timelin
e:

195
9

HUL launched Surf Excel.

196
9

Nirma was launched.

198
7

RSPL launched Ghari.

198
8

HUL launched Wheel.

199
1

P&G launched Ariel.

200
0

P&G launched Tide.

Indian Detergent Market Landscape

Market Share Division

The Detergent market is

dominated by following major
players:
1. Hindustan Unilever
Limited (HUL)
2. Rohit Surfactants Pvt.
Ltd. (RSPL)
3. Procter & Gamble (P&G)
4. Nirma
5. Jyothy Laboratories &

13.2
34

12
18
22.8

HUL
Gha
ri
P&G
Nirm
a

Detergent Market Segmentation

50%
45%
40%

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

We will measure the forces on the

following scale:

Very Low

Low

Mediu
m

High

Very
High

1.) Competitive Rivalry

Premium Price
Segment

Mid Price Segment

Low Price Segment

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

2.) Bargaining Power of Suppliers

Premium Price
Segment
Low
Main ingredient
required to be
procured from
suppliers is soda ash
which is not an
ingredient hard to
make.
Suppliers are ready to
provide good quality
soda ash.
But still quality
matters and hence
bargaining power of
suppliers is low but
not very low.

Mid Price Segment

Low Price Segment

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.

3.) Threat of New Entrants

Premium Price
Segment
Medium
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

Mid Price Segment

Low Price Segment

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

4.) Bargaining Power of Buyers

Premium Price Segment

Mid Price Segment

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

Low Price Segment

Very High
More number of
players, 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
very high bargaining
power of buyers.
E.g. Nirma, Wheel,
Ghari. Ghari offered
better quality and
buyers switched to it

5.) Threat of Substitutes

Premium Price Segment

Mid Price Segment

Low Price Segment

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

Launched in 1959 in India as

1st Detergent Powder.

Launched in 1991 in India as

Detergent Powder.

One of the brands under

Unilever.

One of the brands under P&G.

Surf Excel Product Range

Surf Excel
Matic

Surf Excel
Quickwash

Surf Excel
Liquid
Wash

Surf Excel
Easy Wash

Surf Excel Product Range

Surf Excel
Quickwash

Surf excel Quickwash with X-tra clean particles combines the

power of stain removing products like blue, bleach and lemon.
Multiple stains are removed with just 1 product.

Surf Excel
Easy Wash

Surf excel Easy Wash is a superfine powder, in which tough

stains are taken off in a jiffy. It is made with superior technology
which unleashes the power of 10 hands

Surf Excel
Matic

Works in high water levels of front load washing machines. It has

hand rub action power and is value for money. For 2 different
types of washing machines, it offers 2 products: A.) Surf Excel
Matic Top Load, B.) Surf Excel Matic Front Load.

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 Product Range

Ariel
Matic

Ariel 24
Hour
Fresh

Ariel
Complete
+

Ariel
Color and
Style

Ariel Product Range

Ariel
Complete
+
Ariel 24
Hour Fresh
Ariel
Matic
Ariel
Colour and
Style

Ariel Complete+ removes tough stains in just 1 Wash. Especially

formulated for
semi automatic washing machines, Ariels
cutting edge technology to provide impeccable cleaning
Ariel 24 Hour Fresh provides tough stain removal along with long
lasting fragrance. Advanced perfume technology provide
impeccable clothes along with refreshing fragrance that lasts
upto 24 hours.
It provides the Best stain removal in 1 Wash. Especially
formulated for Fully Automatic Washing Machines. Best used for
Front & Top Loading Fully Automatic Washing machines
Ariel Colour & Style is specifically created for coloured clothes to
remove tough stains and prevent colour fading. With Colour Lock
Technology, it ensures coloured clothes stay shining like new.

Ad

Ad

Daag
Achhe
Hai

Maa Ke
Haathon
Jaisi
Safai

Ad

#ShareTheLoa
d

Surf Excel

ArieL

S Segmentation

S Segmentation

Premium Segment, Detergent.

Moms washing childrens dirty
clothes by

Premium Segment, Detergent.

Nuclear families with high incomelevels.

T Targeting

T Targeting

Blue: All mid scale and premium

segment buyers,
Matic: Washing machine users
Bar: Medium and Low Income
families
Quickwash: Consumers in waterscarce and hard-water regions.
Daag Achhe Hai

Upper middle class rich class of the

society wanting superior quality.
Washing machine users are also
targeted by its product Ariel Matic.
Customers wanting fragrance and
color preservation.
#ShareTheLoad

P Positioning

Positioned as superior stain remover,

offering fragrance and preserving

Positioned as a quality product at

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

Porters Generic Strategies

Competitive Advantage
Differentiati

Broad
Target

on

Cost
Leadership

Narrow
Target

Market Scope

Lower Cost

Focus
Differentiati
Cost Focus
on Focus

Differentiati
on

VS.

Nirma

Wheel

Launched in 1969 in India as

Very Low-cost Detergent
Powder.

Launched in 1988 in India as

fragrant low cost Detergent
Powder.

Nirma brand launched by a

One of the brands under HUL.

History
Nirma

Wheel

In 1969, Karsanbhai Patel, a chemist, HUL, in typical MNC fashion, initially

dismissed
Nirmas
strategy.
founded Nirma in Gujarat and went on
However, as Nirma grew rapidly, HUL
to sell it nationally by 1985.
Patel was offering detergent products
could see its local competitor was
for poor consumers, mostly in rural
winning in a market it had
areas.
disregarded.
In fact, Nirma created a new business HUL decentralized the production,
system that included a new product
marketing, and distribution of the
formulation,
low-cost
product to leverage the abundant
manufacturing
process,
wide
labour pool in rural India, quickly
distribution
network,
special
creating sales channels through
packaging for daily purchasing, and
the thousands of small outlets
value pricing.
where people at the bottom of the
Current market share of Nirma is 12%
pyramid shop.

Nirma Product Range

Nirma
Detergent

Nirma
Detergent Cake

Super Nirma
Detergent

Super Nirma
Detergent
Cake

Wheel Product Range

Active Wheel
Detergent
Lemon & Jasmine

Active Wheel Bar

Lemon & Jasmine

Active Wheel
Detergent
Lemon & Orange

Active Wheel Bar

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

Low-End Segment, Rural Households

(Basically all belonging to bottom of
the pyramid)
Sabki Pasand Nirma

Low-end Segment Detergent, people

from lower-middle class and poor
class.
Mehangi Wali Dhulai Budget Mein
Samai

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

Cost leadership strategy

Nirma chemicals was able to
challenge the might of Hindustan
lever by pursuing this strategy by
producing products more cheaply than
Surf.
At that time, it was sold at Rs 3.5 per
kg while HULs surf was priced at Rs
15.
The mission of Nirma was to provide
better quality products at best prices
Nirma is a very good example of
fulfilling the unmet needs of the
customers. Once you fulfill the unmet
needs, you also get thefirst mover
advantage.

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

Porters Generic Strategies

Competitive Advantage
Differentiati

Broad
Target

on

Cost
Leadership

Narrow
Target

Market Scope

Lower Cost

Focus
Differentiati
Cost Focus
on Focus

Differentiati
on

VS.

TIDE

Launched in 2000 in India as

Detergent Powder.

GHARI

Launched in 1987 in India as Low

Cost, Good Quality Detergent
Powder.

One of the brands under P&G.

Brand under RSPL.

Ad

Chaunk Gaye?

AdPehle Istemal

Karein, Fir Vishwas

Karein

Tide

GHARI

S Segmentation

S Segmentation

Medium Level Income Segment,

Soaps & Detergent.

Low-end Income Segment (Mass),

Soaps & Detergent.

T Targeting

T Targeting

Middle class women, washing clothes

on their own. Middle class buyers who
cannot afford premium products but
aspire for equally good products

Lower middle class households in Tier

3 and Tier 4 regions. Also targeted
people in rural areas in different
geographies.

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.

Porters Generic Strategies

Competitive Advantage
Differentiati

Broad
Target
Narrow
Target

Market Scope

Lower Cost

Cost
Leadership

on

Differentiati
on

Focus
Differentiati
Cost Focus
on Focus

This is not the End, my friends.

Lets have a quick summary on
Porters Generic Strategies.

Porters Generic Strategies

competition and price segment)

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

Porters Generic Strategies

(in overall Detergent

Industry)

Competitive Advantage
Differentiati

Broad
Target
Narrow
Target

Market Scope

Lower Cost

Cost
Leadership

on

Differentiati
on

Focus
Differentiati
Cost Focus
on Focus

Perceptual Map (Above

discussedHigh
brands)
Price

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
Thank You