detergent wars 2011

18
BY Sukhminder Singh Lamba (100) Varun Gupta (73) Pinky Bisht (117) Rashi Sharma (137) Khushboo Srivastav (129) DETERGENT WARS IN INDIA

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Page 1: Detergent Wars 2011

BY

Sukhminder Singh Lamba (100)Varun Gupta (73)Pinky Bisht (117)

Rashi Sharma (137)Khushboo Srivastav (129)

BY

Sukhminder Singh Lamba (100)Varun Gupta (73)Pinky Bisht (117)

Rashi Sharma (137)Khushboo Srivastav (129)

DETERGENT WARS IN INDIADETERGENT WARS IN INDIA

Page 2: Detergent Wars 2011

ABSTRACTABSTRACT

• Key Players :- Surf (HLL), Nirma, Tide & Ariel (P&G).

• Started in late 50s.

• HLL introduced SURF & Swastik introduced DET.

• SURF dominated market share with 75% compared to DET’s 25%.

• SURF was the key player of market later on Tomco’s MAGIC, TEJ & OK and Godrej’s KEY and DIL’s SIXER also introduced.

• Since then incessant war between detergent’s manufacturer started.

• In mid 70s ,war became fierce when Karasanbhai’s NIRMA started snatching market share from the hands of HLL’s SURF due to its low pricing.

• SURF as market leader in value & volume share both.

• HLL leadership position challenged by NIRMA.

• Key Players :- Surf (HLL), Nirma, Tide & Ariel (P&G).

• Started in late 50s.

• HLL introduced SURF & Swastik introduced DET.

• SURF dominated market share with 75% compared to DET’s 25%.

• SURF was the key player of market later on Tomco’s MAGIC, TEJ & OK and Godrej’s KEY and DIL’s SIXER also introduced.

• Since then incessant war between detergent’s manufacturer started.

• In mid 70s ,war became fierce when Karasanbhai’s NIRMA started snatching market share from the hands of HLL’s SURF due to its low pricing.

• SURF as market leader in value & volume share both.

• HLL leadership position challenged by NIRMA.

Contd…

Page 3: Detergent Wars 2011

ABSTRACT Contd…

• HLL employed various measures to take back SURF ’s market share likeProject Sting and marketing tagline “SASTI CHEEZ OR ACCHI CHEEZMAE FARK HOTA HAI ”.

• Subsequently HLL targeted NIRMA by introducing WHEEL withmarketing strategy to attract NIRMA ’s customers by telling themsafety aspects of SURF.

• In mid 80s, P&G came and launched ARIEL with enzyme based newtechnology which was superior than SURF & NIRMA and later upgradedas ARIEL with MICROSHINE.

• HLL’s new version of SURF EXCEL in mid 90s with tagline “SURF EXCELHAI NA ”.

• P&G launched ARIEL POWER COMPACT portrayed as best detergent inthe world with ‘SMART EYES ’ to recognize stains and remove them.

Contd…

Page 4: Detergent Wars 2011

• To conflict ARIEL, HLL embarked SURF EXCEL with newformulation removing stubborn ink stains accompanied by“AISE DAAG … WAISE DAAG … JAISE BHI DAAG HO,SURF EXCEL HAI NA ”.

• P&G later initiated TIDE in 2000s for maximum whitenesseffect as it was necessary in INDIA to serve the premiumsegment since it was growing.

• To counter TIDE, HLL unveiled country’s first SURF EXCELLiquid Detergent equipped with special stain applicator.

• HLL re-launched NEW SURF EXCEL with smart sensorsescorted by preposition “DAAG HATAYE RANG NAHIN ”and dissolved SURF into new identities as SURF EXCELBLUE, QUICK WASH & AUTOMATIC.

Page 5: Detergent Wars 2011

NIRMANIRMA

Need Levels• Stated needs - Cleaning &

Hygiene.• Real needs - Low cost

detergent.• Unstated needs - Whitening.• Delight needs - Fragrance.• Secret needs - protection to

clothes and their colors.

Need Levels• Stated needs - Cleaning &

Hygiene.• Real needs - Low cost

detergent.• Unstated needs - Whitening.• Delight needs - Fragrance.• Secret needs - protection to

clothes and their colors.

Product Levels• Core Benefit- Cleaning & Hygiene

• Basic Product - Soda Ash

• Expected Product - Whitening & Cleaning

• Augmented Product-Good quality with low Price

• Potential Product - Auto fills the colors in the faded areas .

Page 6: Detergent Wars 2011

SEGMENTATION (NIRMA)SEGMENTATION (NIRMA)

Geographical• Region - INDIA

• Rural & Semi Urban areas

Demographic• Age - 20 to 50• Income - Low & Lower middle income group• Gender - Female• Occupation - Unskilled Workers, Petty Traders, Sales persons, Self-employed

Geographical• Region - INDIA

• Rural & Semi Urban areas

Demographic• Age - 20 to 50• Income - Low & Lower middle income group• Gender - Female• Occupation - Unskilled Workers, Petty Traders, Sales persons, Self-employed

Page 7: Detergent Wars 2011

• Gender - Female• Occupation - Unskilled Workers, Petty Traders, Sales persons, Self-employed

Target Audience

• Rural & semi Urban Population• Lower & Lower middle class

• Gender - Female• Occupation - Unskilled Workers, Petty Traders, Sales persons, Self-employed

Target Audience

• Rural & semi Urban Population• Lower & Lower middle class

Page 8: Detergent Wars 2011

NIRMA - Consumer MotivationNIRMA - Consumer Motivation

Needs - Acquired Needs because washing clothes is not our biogenic need and is not needed to sustain our biological life.

Goals - Generic goal because the customers are not loyal to any brand and there is a heavy competition between other brands.

Motive - Rational because they consider all alternatives and select on the basis of price, weight, colors, and other features.

Arousal - Cognitive arousals. It is done through comparisons with other brands on the basis of price , quality etc.

Needs - Acquired Needs because washing clothes is not our biogenic need and is not needed to sustain our biological life.

Goals - Generic goal because the customers are not loyal to any brand and there is a heavy competition between other brands.

Motive - Rational because they consider all alternatives and select on the basis of price, weight, colors, and other features.

Arousal - Cognitive arousals. It is done through comparisons with other brands on the basis of price , quality etc.

Page 9: Detergent Wars 2011

Nirma- Consumer PersonalityNirma- Consumer Personality

Trait Theory - What category of product my consumers want?

• Consumer Innovativeness high• Consumer Dogmatism is low

Social Character -• Inner directed• Rational motive

Optimal Stimulation Level - High OSL customers because they are not loyal and they are sensitive to any change like in price, quality etc…

Trait Theory - What category of product my consumers want?

• Consumer Innovativeness high• Consumer Dogmatism is low

Social Character -• Inner directed• Rational motive

Optimal Stimulation Level - High OSL customers because they are not loyal and they are sensitive to any change like in price, quality etc…

Contd…

Page 10: Detergent Wars 2011

Nirma- Consumer PersonalityNirma- Consumer Personality

• Variety or Novelty Seeking - Customers always seek for variety and there is high

level of disloyalty .

Exploratory purchase is very common in them.

Cognitive Personality Factors - • Need for cognition (NC)- High.• Buy on Rational motive.• Verbalizes

• Variety or Novelty Seeking - Customers always seek for variety and there is high

level of disloyalty .

Exploratory purchase is very common in them.

Cognitive Personality Factors - • Need for cognition (NC)- High.• Buy on Rational motive.• Verbalizes

Page 11: Detergent Wars 2011

MARKET SEGMENTATION OF SURFMARKET SEGMENTATION OF SURF

• Geographico Region: All

• Demographic

Age: 20-50 yrsFamily Size: young-married, older-married, single, with no children & with childrenGender: femaleIncome: Upper-middle & high

• Geographico Region: All

• Demographic

Age: 20-50 yrsFamily Size: young-married, older-married, single, with no children & with childrenGender: femaleIncome: Upper-middle & high

Contd…

Page 12: Detergent Wars 2011

• Psychographic:o Socio-economic classification: A1, A2

• Behavioral:

o Occasions: Regularo Benefits: whiteness, stain removing powero User Status: Regular usero Usage Rate: medium

• Psychographic:o Socio-economic classification: A1, A2

• Behavioral:

o Occasions: Regularo Benefits: whiteness, stain removing powero User Status: Regular usero Usage Rate: medium

Page 13: Detergent Wars 2011

Positioning Strategy of HLLPositioning Strategy of HLL

Competitor positioning:

Launched Rin detergent bar to conquer the detergent soap market.

Launched ‘Lalitaji’ ad campaign to stressing upon the fact that ‘It makes better sense to buy surf’.

In order to compete with in rural markets, it introduced a new detergent powder ‘wheel’ priced to match Nirma.

HLL launched ‘Surf Ultra’ to counter P& G’s premium product, ‘Ariel Microsystems.

Then replaced Surf Ultra with International ‘Surf Excel’ to counter the upgraded version of Ariel, ‘Ariel with Micro-shine’.

Competitor positioning:

Launched Rin detergent bar to conquer the detergent soap market.

Launched ‘Lalitaji’ ad campaign to stressing upon the fact that ‘It makes better sense to buy surf’.

In order to compete with in rural markets, it introduced a new detergent powder ‘wheel’ priced to match Nirma.

HLL launched ‘Surf Ultra’ to counter P& G’s premium product, ‘Ariel Microsystems.

Then replaced Surf Ultra with International ‘Surf Excel’ to counter the upgraded version of Ariel, ‘Ariel with Micro-shine’.

Contd…

Page 14: Detergent Wars 2011

Launched new detergent called ‘Surf with Excel Power’ priced midway between International Surf Excel and ordinary Surf - “better than the ordinary.

Relaunched Surf Excel with better formulation, backed by a teaser campaign on television.

HLL retaliated Tide’s challenge by launching an add campaign promoting ‘Rin Supreme’.

To counter P&G’s high decibel launch of Tide, HLL unveiled the country’s first liquid detergent for daily washing needs.

It also introduced ‘Surf Excel Automatic’ as anti-corrosive and clothes friendly powder for washing machines.

HLL offered three variants of Surf by the end of 2004 - Surf Excel Blue, Surf Excel Quick Wash and Surf Excel Automatic.

Launched new detergent called ‘Surf with Excel Power’ priced midway between International Surf Excel and ordinary Surf - “better than the ordinary.

Relaunched Surf Excel with better formulation, backed by a teaser campaign on television.

HLL retaliated Tide’s challenge by launching an add campaign promoting ‘Rin Supreme’.

To counter P&G’s high decibel launch of Tide, HLL unveiled the country’s first liquid detergent for daily washing needs.

It also introduced ‘Surf Excel Automatic’ as anti-corrosive and clothes friendly powder for washing machines.

HLL offered three variants of Surf by the end of 2004 - Surf Excel Blue, Surf Excel Quick Wash and Surf Excel Automatic.

Page 15: Detergent Wars 2011

Positioning Map - DetergentsPositioning Map - Detergents

Price

Cleaning Power

Whiteness

Concentrates

Economy

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Page 16: Detergent Wars 2011

SEGMENTATION OF TIDESEGMENTATION OF TIDE

Geographic - o Region:All

Demography:o Age:15-50yrso Gender:femaleo Income:middle(80,001-120,000p.a) to

high(above160,000p.a)o Education:literate

Psychographic:o Socioeconomic classification:E1,D,B2,A1

Behavioral:o Occasions:regularo User rate:medium

Geographic - o Region:All

Demography:o Age:15-50yrso Gender:femaleo Income:middle(80,001-120,000p.a) to

high(above160,000p.a)o Education:literate

Psychographic:o Socioeconomic classification:E1,D,B2,A1

Behavioral:o Occasions:regularo User rate:medium

Page 17: Detergent Wars 2011

DIFFERENTIATIONDIFFERENTIATION

Why tide was important for the customer?

– Quality of whiteness in cleaning.

– Not harsh.

Affordable:Upper middle-above high.

Superior:Better than the competitors.

Why tide was important for the customer?

– Quality of whiteness in cleaning.

– Not harsh.

Affordable:Upper middle-above high.

Superior:Better than the competitors.

Page 18: Detergent Wars 2011

THANK YOUTHANK YOU