GHari detergent marketing

1. BY:-
GAURAV KUMAR
15DM013
Comprehensive Market,
Environment and Situational
Analysis of
‘’DETEREGENT Industry.’’

2. 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

3. 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 surf
1969 launched Nirma.
1987 Nirma become market leader
1988 HUL introduce WHEEL
2000 WHEEL become market leader
Early 2012 Ghari become market leader.

4. Frequency of buying.
59%
35%
5%
1% Sales
Monthly
Weekly
Alternate days
Daily
Prefered
Quantity
55%21%
9%
8%
7%
Quantity
1 kg
500 gm
5 kg
250gm
Sachet

5. Market share
Ghari
17.3%
Wheel
16.9%
Tide
13.5%
Nirma
6%
Ariel
6%
Others
40%
Sales

6. Scope of Study :-
 This study focuses on the growth of
Detergent industry.
 Analysis of market leader Ghari
 Challenges for Ghari in future

7. 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

8. Performance of Ghari detergent
:-
49 133 178 172 232
2007-08 2008-09 2009-10 2010-11 2012-13
NET PROFIT
Crores
1281
1681 1940
2797
3437
2007-08 2008-09 2009-10 2011-12 2012-13
TURN OVER
Crores

9. Strategies
 Selection of specific geography initial to
succeed
 Low pricing strategy
 Geographical expansion (southern part of
country)
 Innovative way of advertising

10. SWOT Analysis of Ghari
 Strength
S1:- 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

11. Weakness :-
W1:- Limited export market as compared to
international brand
W2 :- Unable to completely penetrate in
premium segment because of image
W3 :- Quality is not superior
Opportunity :-
O1:- Entered western & southern India
recently where lies a huge market opportunity
O2:- Further penetrate the rural market by
collaborating with various NGOs.

12.  Threat :-
 T1:- Low profit margins in detergent sector
 T2:- Threat from existing and new players in
the market

14. Product
Quality
Features
Brand name
Packaging sizes

15. Price
The 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.

17. 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 country’s 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.

18. 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

19.  BCG MATRIX
 under 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.

20. COMPETITOR ANALYSIS:-
Challenger:-
wheelProuct of HUL
Market share 16.9%
Strategies of wheel:-
•Excessive advertising and
marketing.
•Investment in innovation and
product quality.
•Resist change in price.

21. Swot analysis of
wheel:-
Strength:-
S1:- Effective distribution system
of Hul
S2:- Effective cleaning with less
effort
S3:- 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 market
Q2:-Smaller packages to tap rural
Market
Threats:-
T1:- Competition from local players
in the market.
T2:- Price sensitive market
segment.(as other competitors)

22. Follower :-TIDE
•Prouct of P & G
•Launched in 2000
•Market share of 13.5%
•Maximum variants
Strategies
Initially price leader strategy
Later reduced price strategy

23. Nicher: Ariel
 Prouct of P & G
 Lunched in 1991
 Makert share :- around 6%
Strategies
 Premium priced product
 Different variants
 Positioning

24. Porter's five force model:-
-
 Rivalry among existing competitors
 The 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.

25.  Threat of substitute products :-
 In today’s 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

26.  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).

27.  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.