Tid Detergents

download Tid Detergents

of 50

Transcript of Tid Detergents

  • 7/29/2019 Tid Detergents

    1/50

    1

    Indian consumerBehaviorTid tetergents

    CHAPTER PARTICULARS PAGE

  • 7/29/2019 Tid Detergents

    2/50

    2

    NO. NO.

    1 CONCEPT OF CONSUMER BEHAVIOR 5

    1.1 Introduction 7

    1.2 Need for studying consumer behavior 7

    2 INDIAN CONSUMER AND CHANGING DEMANDPATTERN

    11

    2.1 Different segment 11

    2.2 Increasing Awareness 12

    2.3 Changing trend in Indian Indian consumer 14

    3 RESEARCH METHODOLOGY 19

    3.1 Research Design 19

    3.2 Source of data 21

    4 INDIAN FMCG MARKET 33

    4.1 Impulse to go Indian 34

    4.2 Impact of Globalization 36

    4.3 Indian v/s Urban consumer 38

    4.4 Branding Positioning 40

    4.5 Branding strategy in Indian price 52

    5 DETERGENT AND SOAP IN INDIAN INDIAN MARKET 57

    5.1 TID v/s NIRMA 57

    5.2 SWOT analysis 57

    5.3 Price strategy 58

    6 CONCLUSION 607 BIBILOGRAPHY 60

  • 7/29/2019 Tid Detergents

    3/50

    3

    SYNOPSIS

    This study on Indian consumer behavior is aimed to get a better understanding of

    the Indian market place thus enabling them to embark on selected strategies to

    effectively reach the Indian INDIAN consumers.

    India is a big country with 28 states, over one billion people and 120dialects/languages.

    From the market perspective, people of India comprise different segments of

    consumers, based on class, status, and income.

    An important and recent development in Indias consumerism is the emergence of

    the Indian market for several basic consumer goods. Three-fourths of Indias

    population lives in Indian areas, and contribute one-third of the national income.

    India is a lucrative market even though the per capita income in India is low and

    it remains a huge market, even for costly products.

    This project report focuses on changing behavior of Indian consumers. However I

    have restricted report finding and analysis to detergent and soap category. This is done

    in-order to draw boundary lines of project and make the report specific. Moreover

    the study includes primary analysis of survey done in Indian area on detergent and

    toilet soaps. The survey focuses on understanding consumer behavior towards toilet tid

    tetergents .

    I hope this report of mine will be useful for furtherlearning.

  • 7/29/2019 Tid Detergents

    4/50

    4

    CHAPTERI

    CONCEPTS OF CONSUMER HAVIOUR-

    INTRODUCTION

    Analyzing consumer behavior is perceived as cornerstone of a successful

    marketing strategy. Consumer behavior is the mental and emotional processes and

    the observable behavior of consumers during searching purchasing and post

    consumption of a product and service. Similarly consumer behavior as the action and

    decision process of people who purchase goods and services for personal

    consumption.

    There are four different views related to consumer decision making process and

    behavior. It is argued that first of them is economic view that consumers are

    primarily facing imperfect competition and they are always expected to make

    rational decision on the basis of assumptions that they are aware of all product

    alternatives, they can rank benefits and limitation of each alternative and are able to

    identify one best alternative. Second Passive View is absolutely opposite to

    economic view and suggests that consumers are irrational and impulsive as they are

    submissive to self-centered interests of marketers and got influenced by marketing

    tools. Similarly third, Emotional View is related to perceive consumers

    decision making based on their emotional association or feeling about some

    products and services. For instance, a person loosing red color specific pen neither

    go for rational decision by evaluating alternatives ( economic view) nor will the

    person get influenced by marketers ( passive view). Rather the person will try to

    purchase any pen closely resembled with his favorite possession.

    Fourth and arguably most acknowledged view is Cognitive View where

    consumers are considered as thinking problem solver which are receptive as well

    as actively searching for the products and services that can fulfill their need.

    Consumers behavior under this view is based on information seeking and processing

    attributes usually directed by a goal. For instance, buying a tooth paste from shop

    can have a certain goal of choosing product that can taste good. Despite of critiques

  • 7/29/2019 Tid Detergents

    5/50

    5

    for each viewpoint, it can be considered a valid argument, that all four types of

    decision making behavior exist and provide marketer guidelines to analyze

    consumer accordingly. Based on general perception about most acknowledged and

    common cognitive view, asserts broader stages of a consumers decision making

    process that includes problem identification , information search, evaluation

    of alternatives, outlet selection and purchase and post-purchase action.

    1.2 Need for studying consumerbehavior

    Consumer behavior can be said to be the study of how individuals make decisions on

    how to spend their available resources (time, money, effort) on various consumption-

    related items. This simple definition of consumer behavior tells marketers to resolve

    every activity around the ultimate consumer and gauge their behavior by specifically

    focusing on:

    Who buys the products or service?

    How do they buy products or services?

    How often do they buy them?

    When do they buy them?

    Why do they buy them? And

    How often do they use them?

    This questions will help in understanding better what factor influence the decision

    making process of the consumers. The decision making process identifies the number of

    people who are involved in this process and ascribes a role to them like the users,

    decider, influencer, and buyer.

    It is believed that consumers or customers make purchase decision on the basis of

    receipt of a small number of selectively chosen pieces of information. Thus it will be very

    important to understand what and how much information is required by the customer to

    help them to evaluate the goods and services offerings.

    The involvement of the customer in the decision making process will vary with

    the type of purchase involved like incase of complex product there will be high

    involvement and so on. Thus it is very important to understand what customers feels will

    help them to able to evaluate goods and services.

    The consumer decision making process goes beyond the facets such as what features or

  • 7/29/2019 Tid Detergents

    6/50

    6

    the product design will be acceptable to consumers, what benefits are they seeking from

    their products, what price will be suitable etc. Today consumer behavior also includes

    the post purchase satisfaction or dissatisfaction behavior. Because the post purchase

    behavior will have repercussions on the communication (word of mouth) they have with

    the firms prospective customers. Usually there are two types of customers the personal

    consumer and organizational consumer.

    1.2.1 Personal consumer:

    Right from the stimuli till the consumer response, there are many individual and

    environment influencing the consumer purchase decisions.

    1.2.2Organizational consumer:

    The type of buying situation will be different but the categorization in terms of low

    involvement and high involvement purchases made by individual is similar.

    The marketers look into the decision-making unit in both the cases i.e. personal purchases

    as well as the industrial purchases. Then depending upon the role of the person who is

    most likely to influence the decision they decide to more of the promotional efforts at

    them.

    1.3 OBJECTIVES OF THE STUDY

    To study the general causes forChanging Indian Indian consumerBehavior

    To analyze changing mentality of the consumer and their behavior

    To find out the most prominent general and various factors that leads tochanging behavior of the consumer.

  • 7/29/2019 Tid Detergents

    7/50

    7

    1.5 LIMITATIONS OF THE STUDY

    The information provided by them may be subjected to

    personal bias. Some of the respondents were not interested

    to express their views.

    It is possible that some of the respondents feel uncomfortable and

    has backed the study and hence the reliability of the response.

    Due to time constraints and busy schedules it was difficult to interactwith the consumer completely.

  • 7/29/2019 Tid Detergents

    8/50

    8

    CHAPTERII

    INDIAN CONSUMER AND CHANGING DEMAND PATTERN

    2.1 Different Segments of Indian Consumers

    2.1.1 The socialites

    Socialites belong to the upper class. They prefer to shop in specialty stores, go to clubs on

    weekends, and spend a good amount on luxury goods. They are always looking for

    something different. They are the darlings of exclusive establishments. They go for high

    value, exclusive products. Socialites are also very brand conscious and would go only for

    the best known in the market.

    2.1.2 The conservatives

    The Conservatives belong to the middle class. The conservative segment is the reflection

    of the true Indian culture. They are traditional in their outlook, cautious in their approach

    towards purchases; spend more time with family than in partying and focus more on

    savings than spending. Slow in decision making, they seek a lot of information before

    making any purchase. They look for durability and functionality but at the same time is

    also image conscious.

    They prefer high value consumer products, but often have to settle for the more

    affordable one. These habits in turn affect their purchasing habits where they are trying to

    go for the middle and upper middle level priced products

    2.2 Indian consumer

    About three quarters of the Indian population are in the Indian areas and with the

    growing middle class, especially in the Indian cities; the spill over effect of the

    growing urban middle class is also felt in the Indian areas.

    The Indian Indian market has been growing at 3-4% per annum, adding more than 1

    million new consumers every year and now accounts for close to 50% of the volume

    consumption of fast-moving consumer goods (FMCG) in India. The market size of the

    fast moving consumer goods sector is projected to more than double to US$ 23.25 billion

    by 2010 from the present US$ 11.16 billion. As a result, it is becoming an important

  • 7/29/2019 Tid Detergents

    9/50

    9

    market place for fast moving consumer goods as well as consumer durables.

    Over the years, as a result of the increasing literacy in the country, exposure to the west,

    satellite television, foreign magazines and newspapers, there is a significant increase of

    consumer awareness among Indian consumers.

    Today more and more Indian consumers are selective on the quality of the

    products/services.

    This awareness has made the Indian Indian consumers seek more and more reliable

    sources for purchases such as organized retail chains that have a corporate background and

    where the accountability is more pronounced. The consumer also seeks to purchase from a

    place where his/her feedback is more valued. Indian Indian consumers are now more

    aware and discerning, and are knowledgeable about technology, products and themarket and are beginning to demand benefits beyond just availability of a range of

    products that came from trusted manufacturers.

    The Indian Indian consumers are price sensitive and prefer to buy value for

    money products.

    2.3 Changing Trends in Indian consumerbehavior

    2.3.1 Bulkpur

    chasingUrbanization is taking place in Indian India at a dramatic pace and is influencing the

    life style and buying behavior of the consumers. The Indian consumers are depending

    more on fast and ready-to-serve food, they take less pain in traditional method of

    cooking and cleaning.

    Bulk purchases seems to be the trend these days with purchasing becoming more of a

    once-a-week affair, rather than frequent visits to the neighborhood market/store/vendor.

    The popular growing shopping trend is purchasing from malls to supermarkets.

    2.3.2 Lifestyle

    The current Indian consumer buying behaviour to a large extent has urbanize

    influence. There is an increase in positive attitude towards trends. The Indian

    consumer has become much more open-minded and experimental in his/her perspective.

    There is now an exponential growth of trend reaching the Indian consumer by way of the

    media and other mediums.

  • 7/29/2019 Tid Detergents

    10/50

    10

    Indian consumers have also developed lifestyles which have emerged from

    changing attitudes and mind sets; exposure to western influences and a need for self-

    gratification. Beauty parlors, eateries, designer wear, watch, hi-tech products are a few

    instances which reflect these changes.

    2.3.3 Buyers market in the making

    The sellers market is slowly moving towards becoming the buyers market.

    Since, Indias economic liberalization policies were initiated in 1991, many new product

    offerings have entered the Indian market and product variety has also increased manifold.

    Import licensing restrictions are being eliminated and tariffs significantly reduced and

    this has led to large range of consumer goods made available in India.

    2.4 Consumer Spending Behavior

    The Indian consumer spending has increased from US$ 133.60 in 1992-93 to US$

    350.74 in 2002-03, a compound annual growth of 10.13 per cent at current prices.

    The way Indian consumers are spending their money on various items has changed in

    recent years. The share being spent on the basis (food and beverages) has fallen from

    54.07 per cent in 1992-93 to 44.8 per cent in 2002-03. Other items have increased in

    importance, for example, medical and healthcare spending has increased from 3.5 per

    cent to 8.5 per cent of total expenditure over the same period, a compound growth rate of

    19.71 per cent. Similarly spending on transport and communication has grown at 13.2 per

    cent.

    While the Compound Annual Growth Rate (CAGR) in total consumer spending has been

    around 12 per cent a year over the past decade, there have been sharp ups and downs.

    Consumer expenditure has been in tandem with the annual GDP growth.

    For Indian India, percapita 30 days'consumerexpenditure of US$ 12.34 was split

    up into US$ 6.78, on an average, for food, and US$ 5.56 for non-food. Food

    expenditure included US$ 2.25 forcereals and cereal substitutes, and US$ 2.37 for

    milk, milkproducts, vegetables, edible oil and US$ 2.16 on others. on-food

    expenditure included US$ 1.11 forfuel and light, andanotherUS$1.00 forclothing,

  • 7/29/2019 Tid Detergents

    11/50

    11

    footwearand US$3.45 on othernon-food expenditure.

    For the urban sector, average Monthly Per Capita Consumer Expenditure (MPCE) of

    US$ 23.53 was split up into US$ 10.00 for food and US$ 13.53 for non-food. Of food

    expenditure, US$ 2.37 went towards cereals and cereal substitutes while US$ 3.67 was

    spent on milk, milk products, vegetables and edible oil and US$3.96 on other food items.

    US$ 2.11 was spent per person per month on fuel and light, and US$ 1.65 on clothing and

    footwear and US$9.77 on other non-food items.

    Urban expenditure levels per capita exceeded Indian levels for all the product

    groups, except on cereals and cereal substitutes. The average monthly per

    capita expenditures on cereals and cereal substitutes for Indian and urban areas

    are very close to each other.

    The gap between Indian and urban averages of MPCE was of the order of US$

    11.16. The item-groups viz. milk and milk products, beverages etc, fuel and

    light, education, miscellaneous consumer goods & services, conveyance and

    rent contributed to the gap significantly.

    Non-food expenditure per person in the urban sector was more than double of that for the

    Indian sector, where it was about US$ 5.55.

    In India, the higher income group (>US$2,465) spends more amount of their income on

    luxury goods and trendy products than fact moving consumer products.

    The middle income group (US$1,162 US$1,190) spends more on consumer

    expendables than the rich.

    Combined the middle and the lower income group provide 60 per cent of the value of the

    Indian market.

  • 7/29/2019 Tid Detergents

    12/50

    12

    CHAPTER - III

    RESEARCH METHODOLOGY

    3.1 Research Design

    A research design is the arrangement of conditions for collection and analysis data in

    a manner to combine relevance to the researcher purpose with economy in procedure

    It constitutes the blueprint for the collection, measurement and analysis of

    data. As such design includes an outline of what the researcher will do form

    writing the hypothesis and its operational implications to the final analysis of data.

    As such the design includes an outline of what the researcher will do from

    writing the hypothesis and its operational implications to the final analysis of data. More

    explicit, the decisions happen to be in respect of:

    What is the study about?

    Why is the study being made?

    Where will the study be carried

    out? What type of data is required?

    Where can the data found?

    What periods of time will the studyinclude? What will be the sample design?

    How will the data be analyzed?

    In what style will the report be prepared?

    What techniques of data collection will be used?

    The Research Design undertaken for the study is Descriptive one. A study,

    which wants to portray the characteristics of a group or individuals or situation, is

    known as Descriptive study. It is mostly qualitative in nature. The main objective of

    Descriptive

    study is to acquire knowledge.

    3.2 Source of Data

    Data are the raw materials in which marketing research works. The task of datacollection begins after research problem has been identified and research design ischalked out. Data collected are classified into primary and secondary data.

    Primary data

  • 7/29/2019 Tid Detergents

    13/50

    13

    In this study, the primary data is collected to understand the main reasons behindchanging consumer behavior of soap and detergent. This is collected using aquestionnaire specifically designed for the consumer of all levels.

    Secondary dataSecondary data were collected from the newspapers, journals, websites, and from

    library books.

  • 7/29/2019 Tid Detergents

    14/50

    14

    CHAPTERIV

    INDIAN FMCG MARKET

    4.1 INTRODUCTION

    The Indian Fast Moving Consumer Goods (FMCG) industry began to shape

    during the last fifty odd years. The FMCG sector is a cornerstone of the Indian

    economy. This sector touches every aspect of human life. Indian FMCG market has

    been divided for a long time between the organized sector and the unorganized sector.

    Unlike the US market for FMCG which is dominated by a handful of global players,

    Indias Rs. 460 billion FMCG market remains highly fragmented with roughly half

    the market going to unbranded , unpackaged home made products.

    This presents a tremendous opportunity for makers of branded products who can convert

    consumers to buy branded products. Globally, the FMCG sector has been successful in

    selling products to the lower and middle income groups, and the same is true in India.

    Over 70% of sales is made to middle class households today and over 50% is in Indian

    India. The sector is excited about a burgeoning Indian population whose incomes are

    rising and which is willing to spend on goods designed to improve lifestyle. Also with a

    near saturation and cut throat competition in urban India , many producers of FMCGs

    are driven to chalk out bold new strategies for targeting the Indian consumer in a big way.

    MART, the specialist Indian marketing and Indian development consultancy, has foundthat

    53 per cent of FMCG sales and 59 per cent of consumer durable sales lie in the Indian

    areas. Of two million BSNL mobile connections, 50 per cent went to small towns and

    villages; of 20 million Rediffmail subscriptions, 60 per cent came from small towns; so

    did half the transactions on Rediff's shopping site. According to a study by Chennai-

    based Francis Kanoi Marketing Planning Services Pvt Ltd, the Indian market for FMCG

    is worth Rs.65,000 crore, for durables Rs 5000 crore, for tractors and agri-inputs

    Rs.45,000 crore and two- and four-wheelers, Rs.8000 crore. In total, a whopping

    Rs.123,000 crore. This could be doubled if corporate understood the Indian buying

    behaviour and got their

    distribution and pricing right.

  • 7/29/2019 Tid Detergents

    15/50

    15

    4.2 Impulse to go Indian

    There are many reasons that has urged the FMCG companies to enter the uncharted

    territory of Indian India. Some of the attractions are discussed below;

    4.2.1Large Population

    The Indian population is large and its growth rate is also high. Over 70% Indias one

    billion plus population lives in around 627,000 villages in Indian areas. This simply

    shows the great potentiality Indian India has to bring the much needed volumes and

    help the FMCG companies to bank upon the volume driven growth.

    Percentage distribution of households and income

    4.2.2 Rising Indian prosperity

    India is now seeing a dramatic shift towards prosperity in Indian households. To drive

    home the potential of Indian India just consider some of these impressive facts aboutthe Indian sector. As per the National Council for Applied Economic Research

    (NCAER) study, there are as many middle income and above households in the Indian

    areas as there are in the urban areas. There are almost twice as many lower middle

    income households in Indian areas as in the urban areas.

    Distribution of people income-wise

    According to NCAER projections, by 2006 07, the lowest income class (i.e.Rs.2500

    and below) will shrink by more than 60%. The higher income classes are likely to double

  • 7/29/2019 Tid Detergents

    16/50

    16

    by 2006 07. This apparently is the result of development work, which happened under

    the five years plans and other special programmes such as land reforms, Indian

    electrification Indian communication, and Indian credit facilities, etc. The absolute size

    of the Indian market is thus expected to double that of urban India. But despite the high

    Indian share in these categories, the Indian penetration rates are low, thus offering

    tremendous potential for growth.

    According to Mr. D. Shiva Kumar, Business Head (Hair), Personal Products Division,

    Hindustan Lever Limited, the money available to spend on FMCG (Fast Moving

    Consumer Goods) products by urban India is Rs. 49,500 crores as against is Rs. 63,500

    crores in Indian India.

    4.2.3 Growth in Market

    The purchasing power in Indian India is on steady rise and it has resulted in the growth

    of the Indian market. The market has been growing at 3-4% per annum adding more than

    one million new consumers every year and now accounts for close to 50% of

    volume consumption of FMCG. The growth rates of lot of FMCG are higher in Indian

    markets than urban markets. In product categories like toilet soaps, talcum powder,

    cooking oil, vanaspati ghee, tea, cigarettes and hair oil, the share of Indian market is more

    than 505.

    The estimated annual business from Indian markets was Rs 1,23,000 crore, comprisingRs

    65,000 crore of FMCG, Rs 5,000 crore of durables, Rs 45,000 crore of agricultural inputs

    including tractors and Rs 8,000 crore of two-wheelers and four wheelers.

    Twenty nine per cent of the Indian people own cars, 27 per cent own colour televisions,

    24 per cent own refrigerators and 10 per cent own washing machines, which points to

    the untapped potential in the Indian areas. Companies therefore have to look at the

    Indian

    market very seriously for future expansion.

  • 7/29/2019 Tid Detergents

    17/50

    17

    Indian FMCG market Projections (the below table indicates past data in-order to

    show upcoming Indian market)

    4.2.4 Effectiveness of Communication

    An important tool to reach out to the Indian audience is through effective

    communication. A Indian consumer is brand loyal and understands symbols better. This

    also makes it easy to sell look -alike. The Indian audience has matured enough

    to understand the communication developed for the urban markets, especially with

    reference to FMCG products. Television has been a major effective communication

    system for Indian mass and, as a result, companies should identify themselves with their

    advertisements.

    Advertisements touching the emotions of the Indian folks, it is argued, could drive a

    quantum jump in sales.

    4.2.5 IT Penetration in Indian India

    Today there are over 15 million villagers in India who are aware of the Internet

    and over 300,000 villagers have used it! Ten years back, history was created with

    Public Call Office phone booths (essentially manually operated payphone facilities),

    opening in every corner of the country. This experiment was an instant success and

    contributed to hundreds of thousands of jobs. Over the next two years, WorldTel is

    expected to provide 1000 centers in Tamil Nadu with 2 to 20 terminals in each centre.

    If successful, this experiment can be replicated easily to all 27 states leading to over half

    a million Internet users through this experiment alone! The existing 600,000 public call

    offices in India will soon be transformed into public 'tele-info-centres' offering a

    variety of multimedia information services. The Indian consumers spend time and

    money to access higher level

  • 7/29/2019 Tid Detergents

    18/50

    18

    information. Studies have indicated that if the content has direct relevance and will result

    in commercial gains, people in Indian areas are willing to pay for information services.

    Consumerism has altered Indian buying behavior in recent years. Spending patterns of

    those who spend are now adapting to face the technology bug. Today's Indian children

    and youth will grow up in an environment where they have 'information access' to

    education opportunities, exam results, career counseling, job opportunities, government

    schemes and services, health and legal advice and services, worldwide news and

    information, land records, mandi prices, weather forecasts, bank loans, livelihood

    options. If television could change the language of brand communication in Indian

    India, affordable Web connectivity through various types of communication hubs

    will surely impact the currency of information exchange. As the electronic ethos and IT

    culture moves into Indian

    India, the possibilities of change are becoming visible.

  • 7/29/2019 Tid Detergents

    19/50

    19

    4.3 Understanding Indian consumer

    The Indian-urban divide does exist. In many cases, the Indian consumer, unlike the

    urban one, can't appreciate ads that are clever, gimmicky, suggestive or hi-tech

    The Indian consumer is very conscious about getting value formoney.

    He understands symbols and colors better, and looks for endorsement by local leaders

    or icons.

    He doesn't like to pay extra for frills he cannot use.

    He has his daily routine, and there is no sense of urgency in his lifestyle.

    He has a very high involvement in any product purchased, especially when he decides

    to buy high-end products, which cost a few hundreds or thousands of rupees.

    Divisions based on caste, community and other hierarchical factors continue to exist in

    Indian areas. Perceptions, traditions and values vary from State to State and, in some

    cases, from region to region within a State.

    The case of a well-known brand of shampoo. When it entered the Rajasthan market some

    decades ago, with a theatre commercial that showed a beautiful model featuring bouncing

    hair, the product bombed. Post-research showed that it was considered indecent for a girl

    to show off her hair, and the audience refused to connect with the brand.

  • 7/29/2019 Tid Detergents

    20/50

    20

  • 7/29/2019 Tid Detergents

    21/50

    21

    Similarly, MRF bullock cart tyres, there was glaring differences between Western UP and

    Eastern UP. While bullock carts in Western UP were smaller vehicles with single

    buffalos, in Eastern UP, they were bigger vehicles pulled by two bullocks. In Western

    UP, villagers spoke Hindustani whereas in Eastern UP, they spoke Bhojpuri. When we

    developed the communication package, we had to keep the above factors in mind.

    The first step in the development of any communication package is the in-depth study of

    the mindset of consumers of each region for each product category. Remember, it is

    suicidal to blindly extend the experience of one product category to another.

    While the importance of conceptualizing in the local languages (to capture the local spirit

    in the communication aimed at specified Indian audiences) is known, what is very often

    overlooked is that a Indian consumer is not in a hurry and you can take your time to

    communicate a message. The quickies beamed on television media, which very often go

    over his head, are not for him. In fact, commercials or short tele-films of two minutes or

    more do much better.

    Indian folks do not understand clever, gimmicky, quick (fast-paced), suggestive and

    hi-tech films.

    Use of unrelated symbols, characters and icons confuse and distance them. They want a clear connection between the problem and the solution offered by a

    brand.

    It is important to be clued to the region-specific requirements and cater to the typical

    tastes of the regional consumers, both in terms of product offerings and

    communication packages."

    Creating brands for Indian India is a science that will require many ardent students

    who are willing to participate in this great big task of doing the different thing

    altogether

    in Branding

  • 7/29/2019 Tid Detergents

    22/50

    22

    4.4 Brand Positioning in Indian Markets

    Branding correlates with Image Building in an organization vis--vis its products

    produced/services rendered. In the vicinity of today's Marketing scenario along with

    advancement in technology, Brand Management is the order of the day. In the process of

    branding, the aspect of brand activation at ATL (above the level) and BTL (below the

    level) makes a vital contribution for the marketing journey.

    To attain a safe platform in Brand activation, the Marketing Managers pay attention and

    focus in a diligent manner on the value based credentials of the users in the Marketing

    arena. A full-fledged dedicated team with multi focused thoughts only can do the needful

    for the successful brand management.

    Good branding strikes a chord with viewers help them relate with the product and reflect

    their aspirations.

  • 7/29/2019 Tid Detergents

    23/50

    23

    The research approaches to get at brand objective.

    Word Associations:

    While using the logo, hoardings and exhibits, suitable jargons have to be deployed in the

    word association. People can be asked what strikes in their mind when they hear the

    brand's name.

    Personifying the Brand:

    Visual control mechanism plays a vital role in identifying the brands in terms of

    personification. People can be identified the brands when seeing the visual pictures

    described.

    Laddering up to find the brand essence:

    Brand essence relates to the deeper, more abstract goals consumer and trying to satisfy

    with the brand. The attribute, a functional benefit and an emotional benefit brand essence

    constitute a technique known as laddering up.

    Brands are increasingly getting more entwined with our lives. The debate today is not as

    much about 'why branding' as above defining a meaningful role for a brand in the

    consumer's life.

  • 7/29/2019 Tid Detergents

    24/50

    24

    4.4.1 Flow chart onbrandingprocess

    4.4.2Whybranding in Indian areas

    1. Separate your brand from your competitors in a unique way

    2. Relevant and motivating to your customers

    3. Prospects and channels-it gives you value and make you special.

    4. Enhance your perceived value, there by supporting premium pricing, sheltering you

    from low price competition.

    5. Contributing to share holder value.

    6. Provide resilience in times of negative press.

    7. Enable you to launch new products more quickly and cost effectively

    4.4.3 Successful Branding:

    As branding can make or break a product, marketer should handle it with the same

    concern as the artisans show in their work. All the activities that are taken under the

    umbrella of a brand add to or subtract from the value. The customer's evaluation of a

  • 7/29/2019 Tid Detergents

    25/50

    25

    brand is a result of all the consumer experiences he has had with the brand. Consumer

    experience includes product, services, personal contacts, advertising, promotions, word of

    mouth, etc.

    This mix of memories, which are built up over a long time, makes the brand potentially

    the most powerful liver of the intangible perceived values. After all the first thought that

    comes to the mind of the customer prior to the purchase of the product is 'who has made

    it', if that brand has good reputation, it raises the level of confidence on the part of the

    customer to buy the product.

    4.4.4 India's USP

    India is shining then! India is Unique in many ways. A population that is large,

    heterogeneous, largely English speaking and a cultural heritage that runs back to

    thousands of years. India is young. India is vibrant. The major segmentation of mass

    population is located in Indian area. So, the market potential is large in number. So we

    can expect the market strength in Indian area. Now, the educational Institutions are

    also concentrating on Indian marketing and doing market research in Indian places.

    Indian markets are rapidly growing in India but have often been ignored by marketers.

    Most of them are remote-fully ignorant due to the reason of diversification of products

    produced thereby slitting into disposable income.

    4.4.5 Branding strategy in Indian

    place. IndianProduct Development:

    The Indian market is a fast growing one and has a huge population with a great level

    of disposable income. To encash this, products have to be specifically developed to meet

    the needs of Indian markets. Sometimes, existing products might have to be modified to

    suit

    these markets too accordingly.

  • 7/29/2019 Tid Detergents

    26/50

    26

    Indian product development has the strong edifice on a great deal of research like

    feasibility studies, Indian aspiration, Indian profiling and so on. This paves way for a

    great deal of infrastructure and expertise in this area.

    IndianBranding

    Indian branding bears quite different stand from urban branding. The first step towards

    Indian branding is to research and gain insight into the working of Indian markets. Based

    on this communication campaigns have to be developed with a lot of Indian sensitivity.

    Indian branding is attained by way of opting to a greater percentage of local media and a

    smaller percentage of the mass media. Indian gatherings like temple festivals, melas, and

    cinema halls and so on can be used as venues to promote brands. Direct Marketing and

    events like road shows; film shows, melas, street theatre can also be used to promote

    brands.

    A well-planned Indian branding campaign cannot just create brand awareness but help

    your target relevant to your brand and promote sales. A long-term campaign will keep

    your brand at the top-of-the-mind and build brand loyalty. So the brands are in safe hands.

    Indian Market

    Research

    Indian markets behave most differently from urban markets. While many marketers have

    tried to market their products in Indian areas, just a handful of the same only

    has succeeded. A strong insight into Indian consumer behavior and sensitivity to their

    values and beliefs is essential; to upgrade the Indian market Indian market research

    encompasses not just gathering data but analyzing them and linking the findings to

    promoting your products.

    Indian Communication

    Campaigns:

    Communication for Indian markets calls for a different kind of outlook. There must be

    a strong accent on helping the target relate to the message.

  • 7/29/2019 Tid Detergents

    27/50

    27

    The entire communication and media strategy has to devise a system based on research

    findings. These have to be developed in the regional vernacular languages and set in the

    local culture for easier acceptance and reach. Unlike communication campaigns in urban

    areas that rely greatly on the mass media, the strategy will be of crying in the wilderness

    in Indian areas. Besides mass and outdoor media, Indian extravaganza like temple

    festivals, melas and other events where the villagers come together can be used for

    promotions.

    IndianEvents:

    In the Indian context, one of the best ways to capture the attention of the audience is

    through Event-management. Since Indian areas have limited venues for entertainment,

    conducting an event in Indian areas can bring a good response.

    A well-planned event can get the product the mileage that we want. Some of the

    interesting events that can be conducted are Road Shows, Melas, Street-Theatre, Film

    Shows and so on. These make a visually strong impact and build long term brand recall.

    Indian public are the target audience and hence the portfolio of event management has to

    be handled professionally with diligent care and broad perspective.

    Indian DMCampaigns:

    Direct Marketing (DM) is one of the most powerful way to meet the target on their turf

    and build product awareness as well as promotion. The success of any DM campaign

    depends on the field workers and their sensitivity and emotional connectivity to Indian

    markets.

    In the area of Direct Marketing, Indian team has to be trained, to be sensitive to

    Indian culture and beliefs. They can handle activities like Door-to-Door sampling,

    marketing and product promotion. These activities can also be carried out innovatively at

    places like local cinema halls, melas and festivals, in the midst of cross-cultural

    gatherings and

    conglomerations.

  • 7/29/2019 Tid Detergents

    28/50

    28

    CHAPTERV

    DETERGENT AND SOAP IN INDIAN INDIAN MARKET

  • 7/29/2019 Tid Detergents

    29/50

    29

  • 7/29/2019 Tid Detergents

    30/50

    30

    5.1 Detergents and soaps in Indian Indianmarket

    The consumer product industry consists of personal care, cosmetics and home products.

    The sector is sub divided into dental care, soaps, detergents, surface cleaning products,

    skin care and hair care products.

    5.1.1 Market share of consumer products penetration in IndianIndia

    Segments Market Size Penetration

    Rs bn Urban Indian

    Toilet Soaps 46.0 95 % 85.0 %

    Detergents 38.0 95% 85.0 %

    Hair Color 2.4 20 % 10.0%

    Skin Care 7 40% 0.0%

    Oral Care 21 75% 20.0%

    FMCG products like detergents are of low value but the cumulative budget allocated to

    FMCG products by consumers is significant. The price and income elasticity of demand

    varies across products. FMCG products are backed by heavy advertising and sales

    promotion to induce consumers to buy. FMCG products are neither capital intensive nor

    technology intensive. That is, technology is easily available and stable. One of the key

    features of the FMCG industry is third party manufacturing (TPM). TPM used to offer

    fiscal advantages, especially excise- duty, that has now been rationalized. It provides

    other benefits like:

    Allowing the company (say HLL) to concentrate on marketing and liberate

    manufacturing and the associated overheads & inventory.

    Reduction in labor costs. Third party manufacturers are usually small because of

    which overheads and labor costs are low. These companies do not have the problems

    arising out of unionization that big companies face.

  • 7/29/2019 Tid Detergents

    31/50

    31

    Greater control over logistics. It is often necessary to get the product manufactured

    near the market to control logistics. A company may enter into agreements with many

    third party manufacturers instead of setting up plants all over the country.

    The market for detergents is dominated by HLL and Procter & Gamble with four other

    companies in the organized sector - Godrej Soaps, Shaw Wallace, Colgate Palmolive and

    Nirma. In addition there are numerous players in the unorganized sector. In 1995 the

    detergent market was estimated at Rs 6500 cr. Exhibit 10-3 presents a snapshot of the

    detergents market. The tid tetergents industry does not face shortages of raw material

    as major ingredients like soda ash, vegetable oils; Linear Alkyl Benzene and

    Sodium Triphosphate are available. .

  • 7/29/2019 Tid Detergents

    32/50

    32

    5.1.3 Segment Wise Operation of Various Detergents

    Premium Segment Economy Segment

    Product Company Price Per Kg.Product Company Price

    PerKg.

    Ariel Green P&G

    180

    Super Nirma NIRMA

    50

    Ariel Front O Mat P&G

    175

    Ariel Gain Super Soaker P&G

    49

    Ariel Power Compact P&G

    155

    Rin Shakti HLL

    37

    Tide Detergent P&G

    85

    Mr White HENKEL SPIC

    35

    Surf Excel Matic HLL

    160

    Surf Excel HLL

    135Popularsegment

    Surf Washing Powder HLL

    82

    Nirma Washing powder NIRMA

    18

    Rin Supreme HLL

    75

    Nima Green NIRMA

    18

    Henko Compact HENKEL SPIC

    135

    Wheel Blue HLL

    22

    Henko Matic HENKEL SPIC

    95

    OK detergent HLL

    18

    Henko Stain Champion HENKEL SPIC

    81

    Wheel Green HLL

    18

  • 7/29/2019 Tid Detergents

    33/50

    33

    Reg onW se Sa es O Wash ngPowde

    sou heas

    14%17%

    wes

    23%no h

    46%

    Ove a Ma ke Sha e

    O he s5% HLL

    Sma 35%Sca e30%

    N ma30%

    MARKET

    PLAYERSA DTHEIRSHARE

    The major players are: HLL, Nirma,

    Henkel Spic (included in others), P & G

    (included in others), Small-scale players

    t

    rt EndUsers

    country

    Detergents are used by every

    household throughout the

    North India is the largest detergent market in India while south India is the

    smallest detergent powder market across the country

  • 7/29/2019 Tid Detergents

    34/50

    34

    Consumer habits, practices & perceptions

    Most Indian urban

    housewives do a system wash

    ie they first soak the clothes

    in a bucket with powder for

    some time followed by

    scrubbing with bars

    Laundry soaps and synthetic

    detergent Bars are relatively

    more popular in the

    Indian areas as tap wateris not easily available

    in many

    villages.

    In Synthetic Detergents, bars are also more popular than powders due to cheaper

    pricing.

    Fragrance is one of the key benefits sought after by consumers, as it connotes

    freshness and newly washed clothes.

    Consumers attribute greatest importance to whiteness while washing.

    Many consumers in lower and lower middle class feel that daily washing of

    clothes leads to faster and higher wear and tear of clothes

    Washing powders are more popular in the western and northern regions whereas

    cakes/bars are more popular in the South.

    There is widespread use of detergent powder for other purposes such as washing

    utensils and cleaning floors.

    Liquid detergents are still not widely used. Usage is restricted for special fabrics

    and expensive clothes.

    Niche products like fabric softeners, stain removers; color fixers are not widely

    used.

    Homemade remedies such as application of kerosene/lemon for stain removal,

    Salt as color fixer etc are popular.

  • 7/29/2019 Tid Detergents

    35/50

    35

    5.2 HLL Vs NIRMA

    Point of comparison irma HLL

    Product range (wide)

    Pricing

    Packaging (sachet)

    Place in world

    Turnover

    Profits

    SWOT Analysis

    5.3.1 Nirma

    STRENGTHS

    Backward integration on the

    manufacturing process

    Focused on mass market mainly

    Indian India - household name

    Low price high quality

    Distribution network

    WEAKNESS

    Weak financial position

    High interest cost on new projects

    Minimal focus on urban market

    OPPORTUNITIES

    Introduce detergents in the

    premium segment

    Markets abroad like Bangladesh,

    Nepal & parts of Africa

    Acquiring global market share

    THREATS

    Price wars among detergents in the

    premium and economy segments

    Competition from HLL

    Unorganized sector proving products

    at the same or lower price

  • 7/29/2019 Tid Detergents

    36/50

    36

    5.3.2 HLL

    STRENGTHS

    Market leader

    Distribution network

    Caters to all the 3 segments of

    detergent market

    Strong brand equity

    WEAKNESS

    Finding funds for long term growth

    without depressing margins further

    Declining sales and profits

    OPPORTUNITIES

    Expanding in out-of-home

    segment

    THREATS

    A reprising strategy in detergents has

    eroded HLLs profitability.

    5.4 Pricing Strategy

    HLL operates in all the three segments of the market segment wherein the

    premium segment includes detergents falling in the price range of Rs. 75 to Rs.

    160 per kg, the economy segment includes Rin Shakti at Rs. 37 per kg and the

    popular segment includes detergents falling in the price range of Rs. 18 to Rs. 22

    per kg

    HLL has incurred losses in the last quarter due to their price reduction under itscompetitive price war. Earlier it was incurring profits through its detergents

    having high prices and maintaining its leadership.

    Nirma operates in the popular and economy segment whrein the economy

    segment includes super Nirma at Rs. 50 per kg and the popular segment includes

    detergents at Rs. 18 per kg

    P&G operates in the premium and economy market wherein the premium

    segment includes detergents falling in the price range of Rs. 85 to Rs. 180 per kg,

    the economy segment includes Ariel Gain Super Soaker at Rs. 49 per kg

  • 7/29/2019 Tid Detergents

    37/50

    37

    5.5 Marketing Ps

    4 Ps

    4 Ps Nirma HLL

    Price

    Place

    Product

    Promotion

    5.5.1Price:

    Nirma detergent powder launched in the mid- Seventies at one-third the price of

    its competitor HLLs Surf. It proved to be hugely successful. To counter Nirma,

    HLL brought in its own low-priced detergent powder called Wheel, which also

    emerged successful. Launching such low priced variants might mean diluting apremium brands quality and more importantly equity. MNCs are therefore wary of

    doing this.

    Nirma products are usually priced at a lower rate while HLL uses mid range or high

    prices

    5.5.2 Place,product &promotion:

    The reach of Nirma and HLL is listed in the table. HLL promotes its products

    heavily leading to increased customer awareness and it also has a wider product

    range, which differentiates it from Nirma.

  • 7/29/2019 Tid Detergents

    38/50

    38

    5.6 Strategy

    5.6.1 Hindustan LeverLtd

    Flagship BrandSurf

    Positioning - Premium

    Other brandsRin, Wheel, Sunlight, OK, 555, Ala, Comfort

    Surf Excel has been positioned as detergent which has excellent stain removing

    capability. However surveys revealed that consumers worried that colored clothes

    might wear off faster due to regular use of such high powered detergents. HLL

    has therefore changed its advertising theme line from Surf Excel Hai Na to

    Daag Hataye, Rang Nahin.

    HLL has adopted a flanking strategy with its brands catering to every customersegment. Rin and its variants cater to economy segment and premium segments.

    Wheel was launched to fight Nirma in the popular end of the market.

    Project Shakti

    Reinventing the distribution channel

    Health and beauty services like Lakme beauty Saloon & Ayush Therapy Centers.

    5.6.2 Nirma Ltd

    Flagship BrandNirma

    Positioning - Popular

    Other brandsNirma, Super Nirma

    Nirma follows the Value for Money strategy for all its products and both its

    brands cater to the popular segment of the market. Super Nirma, its brand in the

    high end of the economy segment is not a focus area for growth.

    Nirma follows the backward integration strategy to become the lowest cost

    detergent manufacturer in the worldThe company has set up a parallel distribution and sales channel for Nirma. This

    consists of 2000 distributors and an independent sales force. A two-tier network

    (as against the traditional three tier), the Nirma distribution channel is 'flat'

    enabling swift market response

    Initiative to expand business in Bangladesh & Pakistan

  • 7/29/2019 Tid Detergents

    39/50

    39

    Nirma will employ effective marketing strategies & continue to reduce cost to

    counter increasing price competition

    5.6.3 Procter& Gamble

    Flagship BrandAriel Compact

    Positioning - Premium

    Other brandsAriel Super Soaker, Tide

    Ariel is positioned in the premium category and is among the most expensive

    hand available in the Indian market. The company has launched mid priced

    brands like Ariel Super Soaker to cater to the lower income group consumer,

    which forms a significant potion of the Indian market.

    Tide prices have been slashed by 30% to Rs85 per kg. The company hopes that a

    semi premium price positioning will enable it to grow its market share, which has

    been stagnating since the last 2-3 years. The price reduction has been possible due

    to the company being able to save significantly on distribution costs through

    supply chain initiatives and a successful distribution-restructuring project called

    the Golden Eye

    5.7 SurfExcel & Ariel

    5.7.1 Surfexcel

    1. Surf was launched in 1959.

    2. In 1996, Surf redefined this completely when it launched Surf Excel.

    3. A pioneer in the Indian detergent powder market.

    4. Surf Excel is available in 3 variants:

    SurfExcel BlueSurfExcel Quick Wash

    SurfExcel Automatic

  • 7/29/2019 Tid Detergents

    40/50

    40

    Promotions

    Various Schemes & Contests-

    1. Bucket Scheme

    2. 10/10 Contest

    Benefits to Distributors & Retailers

    1. Distributors-3%

    2. Retailers -10%

    5.7.2 Ariel

    1. Ariel was introduced in India in 1991.

    2. Ariel gives you impeccable cleaning in stain removal.3. Ariel contains unique ingredients that cannot be found in other detergents.

    4. Ariel is available in 3 variants:

    Ariel Fresh Clean & Spring Clean

    Ariel Front-O-Mat

    Ariel Ultra-Magic

    Promotions

    1. Tie-Up With Companies

    2. Shiksha Programme

    3. Advertisement

  • 7/29/2019 Tid Detergents

    41/50

    41

    5.9 TOILET SOAP

    The toilet soaps market is estimated at 530,000 tpa including small imports. Hindustan

    Lever is, of course, the market leader.

    The market is littered over with several, leading national and global brands and a large

    number of small brands, which have limited markets. The popular and premium brands

    include Lifebuoy, Lux, Cinthol, Liril, Rexona, and Nirma.

    Toilet soaps, despite their divergent brands, are not well differentiated by the consumers.

    It is, therefore, not clear if it is the brand loyalty or experimentation lured by high volume

    media campaign, which sustain them. A consequence is that the market is fragmented. It

    is obvious that this must lead to a highly competitive market. Toilet soap, once only an

    urban phenomenon, has now penetrated practically all areas including remote Indian

    areas. The incremental demand flows from population increase and rise in usage norm

    impacted as it is by a greater concern for hygiene. Increased sales revenues would also

    expand from up gradation of quality or per unit value.

    As the market is constituted now, it can be divided into four price segments: premium,

    popular, discount and economy soaps. Premium soaps are estimated to have a market

    volume of about 80,000 tones. This translates into a share of about 14 to 15%. However,

    by value it is as much as 30%.

    5.9.1 Factors affecting buying behaviour

    Price is the most important factor which effects the buying behavior of consumer, by

    which a consumer goes for the various segment of soap like premium, popular, sub-

    popular and carbolic which are basically decided by the cost factor and fat content in the

    soap.

    The buying frequency is either monthly that is done by the families or in case of

    bachelors it is more than once in a month. The occasions when premium soaps are

  • 7/29/2019 Tid Detergents

    42/50

    42

    Demand

    1999 00

    a 1996 97e

    Y Tonnes1993 94

    1990 91

    0 200 400 600

    Tonnes

    purchased are usually when there are festivals and ceremonies. Moti Soaps are usually

    presented during festivals and occasions for presents and gifts.

    The promotional techniques help to boost sales. Various tactics like the price offs, buy

    one get two free, free gifts and other schemes help boost sales in short run and also help

    in clearing stocks.

    One of the important points a soap marketer should note is that the soaps are usually

    purchased by women in urban areas as most of the day to day consumption of personal

    care products are made by women. A point to note is that women use more personal care

    product than men do and hence premium soaps are mostly targeted at them. Men

    normally make purchase decisions in Indian areas. Hence the marketer has to

    adopt

    different strategy for such a market.

    -

    r -

    -

    -

    The market shows a seasonal behavior for some brands, i.e. the brands change as per the

    customers' need for that particular season. For e.g. in summer - running brand popular

    and sub-popular most of the buyer take bath twice in a day specially in northern belt, in

    monsoon - running brand antiseptic and medicated soap, in winter running brand

    premium (moisturizer and creamy soap).

  • 7/29/2019 Tid Detergents

    43/50

    43

    Ma ke Sha e

    seya O he s 14 8P

    44

    168

    HLL 64

    0 10 20 30 40 50 60 70

    %Shae

    5.9.2 Benefits sought by various customers from various brands are

    1. Beauty - Lux

    2. FreshnessLiril, Cinthol

    3. NaturalMedimix, Margo

    4. BabyJohnson & Johnson, Doy

    5. CreamDove, Doy Care (moisturizing)

    6. MedicatedDettol, Savlon,

    7. GlycerinPears, Emami

    5.9.3 Penetration

    One of the factors, which affect the demand of soaps, is the penetration, which the

    products have in market. In case of soaps this has not been a major issue as the

    penetration in the Indian area is as high as 97% and that for urban area is around 99%.

    Thus the approximately the penetration is around 99% for overall India.

    5.9.4 Market Share (Indianareas)

    r t r

    r

    l t r .

    .

    .

    r

    In terms of market share, the data indicates that HLL had a market share of 64 per cent in

    the soap market, followed by Nirma at 16.8 per cent and Godrej at 4.4 per cent. However,

    when contacted by ET, Nirma officials said their market share was in the region of 21 per

    cent.

  • 7/29/2019 Tid Detergents

    44/50

    44

    Hindustan Lever is the largest contributor to the toilet soaps market of India. It enjoys

    almost a two-thirds share, with the second ranked Nirma Soaps placed at a distantly low

    share of 16.8%. Lux and Lifebuoy have held the sway of the market for almost fifty

    years. While the former brand remained the preserve of the high-end rich consumers,

    Lifebuoy ruled the roost with health-conscious users as a hygienic soap. The products

    underwent up-gradations with the introduction of versions like International Lux and

    Lifebuoy Personal. In between came brands like Nirma Rose, Nirma Beauty Soap,

    Breeze, Caress, and LeSancy. In 1993 came Dove. Earlier, Liril made waves with its

    lemon touch and bathing acrobatics.

    At the medium and lower rungs, brands like Hamam, Moti, Jai, Rexona (third largest

    brand) were well supported by OK and later by OK NSD Bar.

    While Pears has dominated as high profile specialty soap, HLL undertook, in 1992, a

    project to manufacture the product for the world market at Khamgaon in Maharashtra.

    Commercial production commenced in 1993.

    To provide a sound base to its toilet soaps operations, HLL has also branched out into

    other toiletries like shampoos and related products like glycerin, fatty acids.

    Godrej Soaps had a disappointing experience in forging an alliance with Procter &

    Gamble (P&G). Infact P&G is withdrawing itself from the premium soap segment like

    Camay.

    P & G has now a fully-owned subsidiary in India and now it is concentrating more on

    personal care products..

    Godrej is promoting a number of brands, Cinthol, Ganga, Shikakai, Fairglow, No.1 and

    Crowning Glory, while it has others to bother about such as Vigil and Fresca. Cinthol

    ranks third and accounts for 60% of all Godrej Soap's brands. It is an old brand launched

    about five decades ago in early 1950s. New Cinthol Lime and Cologne gave it a new look

    in 1985. Two variants were introduced in 1989 placing an added emphasis on their brand

    of soaps. Its deodorant and complexion soap is styled as Cinthol Spice. Cinthol is

  • 7/29/2019 Tid Detergents

    45/50

    45

    perceived largely as a male soap, as Lux is a lady's soap. Ganga did well and a new

    version Doodh Ganga has been introduced. Ganga had notched up a 5% market share but

    declined to 2% later with sales at Rs 350 mn. Godrej wants to revive it.

    Even Nirma has achieved a significant penetration and has notched up an impressive

    60,000 tones sale in just three years. Nirma Ltd has been putting up a backward

    integration plant to produce soda ash and linear alkyl benzene (LAB).

    It seems Indians have sacrificed hygiene at the altar of thrift. If numbers are anything to

    go by, Indians do seem to be washing themselves, as well as their clothes, rather less.

    Data collated by industry certainly points to this rather unpleasant conclusion. The

    consumption of tid tetergents has shrunk substantially with volumes declining by

    11.5 per cent and consumption of detergents declining by 4.1 per cent in the year.

    The evidence of this decline in consumption is somewhat perplexing in a country with a

    growing population as the consumption of soap and detergents should logically be

    directly proportional to population growth. "Tid tetergents are at the back of the house

    and are not status products like TVs or refrigerators. Its possible that consumers may be

    economizing on their use or buying cheaper brands during a downturn," explains an

    official at a leading FMCG firm.

    One possible reason could be increased production in the small-scale sector. For

    instance, besides detergents sold as powders and bars, which is produced by organized

    players, a large quantum of detergents are sold in the form of laundry soaps, which are

    used for washing clothes. Production of laundry soaps are reserved for the small-scale

    sector and data is not readily available. There is also a large cottage industry producing

    cheap soap, used for personal wash, for which reliable numbers are not available.

    Another possible reason for the apparent decline in consumption could be the free

    samples of soap which have been handed out as part of incentive schemes, say industry

    sources. The quantum of such samples may not be picked up in the data, said the

    official.

  • 7/29/2019 Tid Detergents

    46/50

    46

    There is another whacky hypothesis. Many households earlier used soaps for twin

    purposes: for body wash as well as shampoo substitutes.

    However, successful sachet marketing in shampoo seems to have nowpenetrated this

    market, which has directly impacted the sales of soaps.

    A detailed analysis of the data shows that sale of premium soaps, the likes of HLL s Lux

    or Godrejs Cinthol, declined by 13.1 per cent. But even the carbolic or discount soaps

    the likes of HLLs Lifebuoy or Nirma saw volumes decline by 9.9 per cent. Even

    though the market has shown de-growth in toilet soaps segment, analyst say that it will

    grow at a meager rate of 3 to 4 per cent especially in the premium category, which was

    previously looking attractive. This can be attributed to factors like excessive dependent of

    Indian Indian sector on monsoon, which can be uncertain. Also due to high excise duty

    prices have remained high enough to keep the huge middle class chunk away from this

    market. Thirdly 80% of the raw materials used in premium soap are imports, which

    attract high import duty. All this factors lead to increase in cost, which deters the players

    to provide value for money product to the middle class consumer.

    Price segments of toilet soaps

    Segment Price/weight

    Premium > Rs. 15 / 75 gms

    Popular Rs. 8-15/75 gms

    Economy < Rs. 8 /75 gms

  • 7/29/2019 Tid Detergents

    47/50

    47

    CHAPTER VI

    CONCLUSIONS

  • 7/29/2019 Tid Detergents

    48/50

    48

    CAPTER VI

    CONCLUSIONS

    In the end it is certain that SOAP & DETERGENT companies will have to

    really gain inroads in the Indian markets in order to achieve double digit growth targets

    in future. There is huge potential and definitely there is lot of money in Indian India but

    the smart thing would be to weigh in the roadblocks as carefully as possible. The

    companies entering Indian market must do so for strategic reasons and not for tactical

    gains as Indian consumer is still a closed book and it is only through unwavering

    commitment that the companies can make a dent in the market. Ultimately the winner

    would be the one with the required resources like time and money and also with the much

    needed innovative ideas to tap the Indian markets.

    The Fast Moving Consumer Goods (SOAP & DETERGENT) sector is a

    corner stone of the Indian economy. This sector touches every aspect of human life.

    The SOAP &DETERGENT producers now realize that there is a lot of opportunity for

    them to enter into the Indian market. The sector is excited about the Indian population

    whose incomes are rising and the lifestyles are changing. There are as many middle

    income households in the Indian areas as there are in the urban. Thus the Indian

    marketing has been growing steadily over the years and is now bigger than the urban

    market forSOAPs &DETERGENTS . Globally, the SOAP & DETERGENT sector has

    been successful in selling products to the lower and middle income groups and the same

    is true in India. Over 70% of sales is made to middle class households today and over

    50% of the middle class is in Indian India. Also with a near saturation and cut throat

    competition in urban India, many producers of DETERGENTS are driven to chalk out

    bold new strategies for targeting the Indian consumers in a big way.

    But the Indian penetration rates are low. This presents a tremendous

    opportunity for makers of branded products who can convert consumers to buy branded

    products. While developing the strategies, the marketers need to treat the Indian

    consumer differently from their counterparts in urban because they are

  • 7/29/2019 Tid Detergents

    49/50

    49

    economically, socially and psycho- graphically different to each other. This paper

    covers the attractions for the DETERGENTSmarketers to go to Indian, the challenges,

    the difference between the Indian and the urban market and the suitable marketing

    strategy with the suitable example of companies and their experience in going Indian.

  • 7/29/2019 Tid Detergents

    50/50

    BIBILOGRAPHY

    1. Philip Kotler ,Marketing Management11E.

    2. Branding India-Advertising Express ICFAI Journal Jan 2006

    3. Indian ManagementMay 2007.

    4. Warner Books , "Positioning"A1 Ries and Jack trint

    5. Business line's Journal on ManagementThe Power of Branding praxis May 2005.

    6. 2006 by business world 2E ,The Marketing White Book

    7. Prof.Venkat Ramasamy Co-author with C.K. prahalad,

    "The future of competition"

    8. http://www.indianmba.com/Articles_on_Management/AOM35/aom35.html.

    http://www.indianmba.com/Articles_on_Management/AOM35/aom35.htmlhttp://www.indianmba.com/Articles_on_Management/AOM35/aom35.html