Premium Essay

Detergent Wars

In: Business and Management

Submitted By kathak
Words 2396
Pages 10
Detergent wars: Nirma, Wheel & Ghari

HLL entered India in 1957 and was the undisputed leader in detergent space. Surf was the most selling detergent in India. However in 1980's Surf suffered huge losses at the hands of a new and small firm, Nirma Chemicals. Nirma was launched in 1969 and its primary focus was to create a good, branded product at affordable prices. The product was priced far lower than the market leader - Surf. Nirma caught the attention of the middle-class and lower middle class customers and had such great sales that it evicted HUL's Surf from the No. 1 position in 1985. HLL then had a look at the situation and found that there was a large market segmentation in detergent space and then came up with lower priced Wheel (green) and Rin (blue) detergent powders targeted at different market segments. This segmentation helped HLL regain part of its lost market.

This post deals with price wars which are becoming an essential part of business. But a cut in price is the last resort in a price war. We will discuss more on various tactics to fight a price war. I will primarily focus on price wars in the detergent space, will also chip in with more examples as and when suitable.

Before i delve into more theories and strategies, lets have a look at some stats and series of events:

The detergent market in India can be divided into premium (Surf, Ariel), mid-price (Rin, Henko, Tide) and popular segments (Ghari, Wheel, Nirma, Mr. White). They account for 15%, 40% and 45% of the market share, which is 60% of the total market. Regional and small unorganized players still account for the 40% market. Per-capita consumption of detergent in India at 2.7 kg is the lowest in the world.

HLL entered India in 1957, Surf was the market leader for a long time.
Nirma Chemicals was started in 1969, in 1985 Nirma became the leading detergent in India.

In...

Similar Documents

Free Essay

Cassava Leaves as an Emulsion Surfactant for Detergents

...EMULSION SURFACTANT FOR DETERGENTS ____________________ A Research Project Presented to the Faculty of the Science Technology and Engineering Batasan Hills National High School IBP Road, Batasan Hills, Quezon City ____________________ In Partial Fulfilment of the Requirements for the Research III ____________________ by Borromeo, Kristine Joy R. March 2016 CHAPTER I THE PROBLEM AND ITS BACKGROUND Background of the Study Almost every human uses detergents everyday, the problem is we had gone too far in using detergents. Detergents are for cleansing that are daily in use. They are becoming more and more expensive and on demand because of their increasing purposes. In this modern age, detergents are not as effective as what like they said in ads and commercials because sometimes too much chemicals re used which can affect its effectivity. The research is done to find out an alternative solution for the problem said in detergents using cassava leaves. Cassava leaves is common inside the community. The solution aims to produce the as an potential emulsion surfactant for detergents using the cassava leaves. The product does the same job as others but is more natural because an organic specimen is added. It contains less harmful chemicals. The said product will perform important functions in detergents cleaning such as loosening emulsifying and holding suspension until it can be rinsed (Healthy Cleaning 101, 2010 ) . Detergents are a surfactant or......

Words: 3323 - Pages: 14

Premium Essay

Thesis

...Comparison of Advertising Strategies of Safeguard vs. Lifebuoy Soap Tahir Ajaib Babar MC070201657 15th May, 2013 Department of Management Sciences, Virtual University of Pakistan TABLE OF CONTENTS Chapter 1 Introduction Introduction …………….…………………………………...………………………. 3 Background …………………………………………..………………………….……4 Objectives ………………………………………………………..……………….…. 4 Significance…………………………………………………….………………….… 4 Chapter 2 Project Proceedings………………………………………………..……………….....5 Chapter 3 Methodology 3.1 Data collection tools/instruments……………………………………….………..7 3.2 Subjects/Participants……………………………………………….………….....7 3.3 Data processing and analysis…………………………………………….…….....7 Bibliography …………………………………………………………………………8 Chapter 1: 1.1 Introduction of the Project: Safeguard, launched in 1995 by Procter & Gamble has set new standards for defining "health & hygiene" in Pakistan. It is an anti- bacterial soap that provides germ protection for twice as long as ordinary soaps making it the doctors' number 1 recommended choice throughout the world. In addition to germ protection, it also caters to various other needs such as beauty care and protection against sweat odor. Safeguard Soap a product of Procter & Gamble is based on clinical testing. Safeguard is targeting the whole family, but it is putting more emphasis on children. Children are more vulnerable to germs and they need more protection, because they spend more outside the home playing......

Words: 1387 - Pages: 6

Premium Essay

4ps of Marketing

...To achieve control on cost, size and scale of operations and supply of keyraw materials, The synthetic detergent market can be classified into premium (Surf, Ariel), mid-price (Rin, Wheel) and popular segments (Nirma), which account for 15%, 40% and 45% of the total market, respectively. The product category is fairly mature and is dominated by two players, HUL and Nirma. Nirma created a revolution in the market by pioneering the concept of low-cost detergents. Putting the right product in the right place, at the right price, at the right time. India is a one of the largest consumer economy, with burgeoning middle class pie. In such a widespread, diverse marketplace, Nirma aptly concentrated all its efforts towards creating and building a strong consumer preference towards its ‘value-for-money’ products. In a short span, Nirma created an entirely new market segment in domestic marketplace, which is, eventually the largest consumer pocket and quickly emerged as dominating market player – a position it has never since relinquished. Rewriting the marketing rules, Nirma became a one of the widely discussed success stories between the four-walls of the B-school classrooms across the world. What do you think about the positioning of the brand? Amongst the low cost players, Nirma commands a premium positioning PRODUCT Since the launch of Nirma detergent powder in 1969, the Nirma portfolio has grown to include fabric care products, personal care products,......

Words: 2413 - Pages: 10

Free Essay

Reading Procter and Gamble and Unilever

...Procter & Gamble and Unilever fined for laundry detergent price fixing Unilever and Procter & Gamble (P&G), the consumer goods giants, have been handed a €315.2m (£280m) fine for their involvement in a pan-European price-fixing ring. By Jonathan Sibun The Telegraph, 13 Apr 2011 The European Commission (EC) found that the two companies, together with Germany's Henkel, had colluded to fix the price of washing powder in eight continental European countries between January 2002 and March 2005. Unilever Unilever has agreed to pay €104m and P&G €211m following the investigation which was launched in June 2008. The scale of the fines reflect the size of the groups' businesses in the eight countries. Henkel was spared a fine after it informed the EC of the cartel's existence. P&G's fine was reduced by 50pc after it co-operated with the EC's investigation, with Unilever receiving a 25pc reduction after subsequently also co-operating. "Companies should be under no illusion that the commission will pursue its relentless fight against cartels, which extract higher prices from consumers than if companies compete fairly," said Joaquín Almunia, EC vice-president. A Unilever spokesman said no one had been fired as a consequence of the EC investigation but that a number of the staff involved had left in the interim. The EC said the cartel was formed after the three companies worked together to improve the environmental impact of their products. "The environmental objective,......

Words: 299 - Pages: 2

Free Essay

Business Proposal of Liqua Dish Wash

...15007152002 Umar Khalid - 15007152006 Zaman Saif - 15007152005 Submitted to: Mr. Ali Mehdi Ass Business Proposal Liqua Dish Wash with 4P’s of Marketing Concept Group Leader Name: Zaman Saif Semester No: 01 Batch No: 07 Assignment No: 01 Table of Contents: Introduction to Market Our Product “Liqua” Where you can use Liqua? Is Liqua Safe for People With Sensitive Skin? Where you can get Liqua? What Price for Liqua? 2015 4/21/2015 Introduction to the Market As we know, now-a-days liquid dish wash has replaced the dish wash bars in Pakistan. Since the advent of liquid soap in Pakistan, the detergent producer has not found it easy pinching with the competition. This is because of the simple fact that liquid soap is fast gaining grounds for laundry and dish washing. Liquid dish wash has several advantages over soaps and detergents hence its preference for laundry and dish washing. Now several skill acquisition centers have integrated liquid soap making into their curricula hence the rise of several small scales liquid soap production companies are growing day by day. Now the big question is, how can one tap into opportunity abound in the liquid soap production industry? The answer is not far-fetched. All you have to do is to acquire the skills, setup your own share of the ever increasing market. Hence we are here with an innovative Dishwashing product in the market. Liqua – Eat with Passion & Clean with Liqua Our Dishwashing liquid......

Words: 561 - Pages: 3

Free Essay

Orange Dishwashing Liquid

...THE EFFECTIVENESS OF JUTE (Corchoruscapsularis Linn.) EXTRACT AS AN ADDITIVE IN MAKING DISHWASHING SOAP A THESIS Submitted to the Faculty Ilocos Norte National High School Engineering and Science Education Program (ESEP) In Partial Fulfillment of the Requirements in Research I ABIGAIL RIO C. ACOBA IX – SSC RUTHERFORD CHAPTER 1 THE PROBLEM: RATIONALE & BACKGROUND Background of the Study Soap is now considered as a regular need for almost all of the living human population across the world, mainly as softening agent and as a product for other personal hygiene purposes, wherein some are proven to be expensive and less effective. One of its kinds is dishwashing soap which we use in washing the dishes in removing the tough stains and grease that is all over the common kitchen tools we use in our everyday lives. It is a great help to minimize the time of removing those tough stains and grease on our kitchen tools. Buying and using the wrong dishwashing soap could put your family’s safety to danger. Your food could pick up a part of the residue that the dishwashing soap left and could cause food poisoning especially because most products contain chlorine in a dry form that is highly concentrated. It could also cause you a lot of skin damages such as unexpected whitening, rashes, and dry skin problems. Putting all of these aside, the question in everyone’s mind is, “What can be a lot safer, cheaper, and more effective ingredient in making and......

Words: 2213 - Pages: 9

Free Essay

Nutritional Analysis

...Animal nutrition focuses on dietary needs of domestic animals in agriculture or food production. In order to properly give the right balance of nutritional needs, one must know what the animal need in order to properly grow and develop. The amount of feed one gives to an animal should include an overall balance of essential nutrients to ensure successful production. An optimal nutritious diet should include intakes of amino acids, fats, carbohydrates, vitamins, and minerals. The importance and our overall objective of this lab was to determine the different nutritional aspects in animal feed. In our case, my group and I analyzed horse feed. We were to determine the amount and percentages of ether extract, protein analysis, NDF, acid detergent fiber, ADF, and ADL in an amount of feed. Materials & Methods Ether Extraction Materials Thimbles Thimble stand and handler Grinded sample Condenser Purpose To purify samples of organic compounds that are solids at room temperature Method Attach the thimbles to the adapters. Weigh the sample (2g) into the thimble. Move the thimbles to the thimble stand. Put a defatted cotton plug on the top of the sample and place the thimbles into thimble supports attached to the holder. Insert the thimbles into the condensers. Raise the holder into the condensers. Move each knob to the boiling position. Insert the six extraction cups, tarred with boiling chips and loaded with 25-50mL of the solvent. Move the extraction mode knobs...

Words: 1597 - Pages: 7

Premium Essay

Principles of Marketing

...with fairly little differentiation. Gain has great passion for the brand. Procter and Gamble works hard to appreciate the Gain consumers and to deliver the great scent experience they find in Gain. In this report, I will identify the laundry detergent industry. There are two major leading companies outside Proctor and Gamble; are Uniler manufactures of Surf and Church & Dwight manufactures of Arm & Hammer Introduction Procter and Gamble will strive to provide recognized products and outstanding quality services to our consumers. By doing so, the consumers will reward the company with profit and leadership sales allowing the company and all channels involved to succeed. While almost all laundry detergents on the market will work well to clean your clothes and get the job done, Gain offers an enticing appealing fragrance across with its array of laundry detergents. Gain delivers a fresh smell along with a great cleaning power. Describe Main Line of Business of the Company Ultimately, all laundry detergents have one, basic function—to get clothes clean. P&G has built solid brand loyalty over its formidable, long history as a company, but no company can rely upon name alone, forever. With detergents and fabric softeners, and more, Gain will fill every room in your home with anything but average scents. To continue to generate revenue and expand sales, the company has attempted to be original in the method, market......

Words: 1348 - Pages: 6

Premium Essay

Marketing Plan for Uniliver

...once affordable to the consumers. We will manufacture the soap bar as a cuboid in OMO’s symbolic colors- Red and Blue. As mentioned in section one, this will make our product ‘standout’ when consumers are washing with OMOSOAP in a group, and hence strengthen the effect of OMO’s brand identity. PACKAGING: We package the soap using our brand name OMO so that the core benefits of our product (stain removal) can be conveyed explicitly. In addition, for packaging we use the same colors (red and blue) and logo as used for OMO detergent. This we believe would encourage emotional response and better customer recall (Kotler, 1997, p. 38). The advantages of our product are: ·Core product: The soap removes the toughest of stains and makes the clothes stain-free and shining. ·Actual product: According to the evaluations by the NE consumers towards detergents, they attach great importance to the quantity of foam produced in the detergent, by which they judge the ability to clean and whiten clothes. Our product produces a large quantity of lather when used. The two color bar will be engineered to be distinctive, good to smell, easy to hold and to last longer than any other soap bar. ·Augmented product: The soap bar with its 2-in-1 action of stain removal and addition of fragrance would leave the customers with a ‘happy feeling’ once they have done their...

Words: 312 - Pages: 2

Free Essay

Rak En Rol . Woooooooooooooooooo . Orayt

...September 9, 2015 MRS. VILLABROSA ASSIGNMENT: CLEANING AGENT TYPES OF CLEANING DETERGENTS This standard includes general information on the different types of cleaning detergents, their typical uses, and their advantages and limitations.  Sample products are listed when known. SOAP Uses: 1.   A surfactant (Surface Active Agent). 2.   Soaps are produced from naturally occurring fats and oils.     Soapless or synthetic detergents are manufactured from organic     chemicals usually derived from petroleum. Advantages: 1.   Very effective as a bactericide. 2.   It will form gels, emulsify oil and lower the surface tension     of water.  A lower surface tension allows the soap to come in     contact with greater surface area than with water alone. Disadvantages: 1.   When used in hard water, soap can produce a scum - calcium and     magnesium salts present in hard water react with the soap to     cause this to happen.  Soapless or synthetic detergents do not     leave a residual film behind. 2.   Considerable rinsing is required to remove soap scum. 3.   Soap may produce a greasy build-up on the surface which can be     slippery. 4.   More expensive than synthetic detergents. Sample Products: 1.   "Joy", "Ivory" (Procter & Gamble Co.) ANIONIC DETERGENTS Uses: 1.   Commonly known as a "neutral" detergent. 2.   The most widely used soapless detergent. 3.   Available in both liquid or powder. 4.   Manufactured from strong alkalis......

Words: 723 - Pages: 3

Premium Essay

Competitive Analysis

...relationship with them. Moreover, it tries to achieve value maximization of shareholders, customers as well as employees (Southern Lion Sdn.Bhd. 2012). The management structure of Southern Lion is more empowered to employees. According to financial report of Lion Corporation in 2013, the organization style is not top organization just give the direction to subordinate whereas it give the driving force for creativity and able to accept challenges. 2.4 SWOT Analysis 2.3 4Ps Product Currently, TOP had launched various product categories and form. It includes the powder form detergent, liquid form detergent and also softener. In powder detergent, it has many different features such as blooming freshness, super colour, super hygienic and also super white. TOP also launches the new detergent range which is anti-mite dust formulation in 2013 (Sledgehammer Communications 2013).The packaging sizes of TOP detergents including 125g, 1kg, 2.5kg and 4kg. Placing Currently, TOP had using the intensive distribution strategy and distributed in...

Words: 5231 - Pages: 21

Premium Essay

Nirma

...INDUSTRY PROFILE Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than groceries/pulses) that one needs to buy at regular intervals. These are items which are used daily, and so have a quick rate of consumption, and a high return.  FMCG can broadly be categorized into three segments which are: 1. Household items as soaps, detergents, household accessories, etc, 2. Personal care items as shampoos, toothpaste, shaving products, etc and finally 3. Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc. Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Cadbury India Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette, Nirma etc. Strengths: 1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector Opportunities: 1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers 3. Large domestic market- a population of over one billion 4. Export potential 5. High consumer goods spending Weaknesses: 1. Lowers cope of investing in technology and achieving economies of scale, especially in small sectors 2. Low exports levels 3."Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Threats: 1.......

Words: 3571 - Pages: 15

Premium Essay

Marketing Plan

...SECTION I. THE BUSINESS Company Description Proctor and Gamble is a multi-million dollar company that has manufactured multiple products, from food to hair products, or laundry detergent and pet food. Proctor and Gambles headquarters is located in Cincinnati, OH. With such a broad range of products to choose from Proctor and Gamble has proven that there products are worth purchasing. Proctor and Gamble was founded in 1837 by William Proctor who was a candle maker and James Gamble a soap maker. My interest with Proctor and Gamble lies with the beauty products and pharmaceuticals. The beauty and pharmaceutical products that are sold by Proctor and Gamble include Clariol and Olay regenerist facial cream. This is an exsisting brand that I feel can be sold at a higher level and marketed to a wider variety of individuals. Business Mission We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper. Company Values The company’s purpose, values and principles are the foundation of P&G. The values of P&G are integrity, leadership, ownership, passion for winning and trust. Having these values reflects on how we work together with our consumers as well as with the employees at Proctor and......

Words: 290 - Pages: 2

Free Essay

Procter and Gamble vs Peta

...“What’s that?” you wonder as you look out your window. A small group of people is gathered on the sidewalk at the end of the wisteria gardens in front of the main headquarters of Procter & Gamble. If you squint, you can see they’re holding signs, but the only text you can make out is the word “PETA” in big letters across the bottom. “Just great,” you think to yourself. People for the Ethical Treatment of Animals, the animal-rights group more commonly know by the acronym PETA, raises more than $25 million a year from its 1.6 million members and supporters. PETA not only campaigns for animal rights but also funds less known animal-rights groups to engage in activism. PETA is extremely adept at organizing public campaigns and mobilizing the public to boycott companies. Its public-relations tactics include celebrity endorsements, traveling displays of animal abuse, and creative on-site demonstrations. Even large international companies like McDonald’s, Burger King, and KFC have bowed to pressure from PETA. In response to aggressive campaigns, all three have issued strict humane animal handling guidelines to suppliers of beef, pork, and chicken and enforce those standards with unannounced audits of production farms and processing plants. PETA has been known to use pretty crude tactics. In one instance, a viral ad featuring scantily clad women with cow udders instead of breasts was distributed in the UK as part of a campaign against milk drinking and production. PETA had......

Words: 603 - Pages: 3

Free Essay

Chem 208 Practice Final Exam

...1 American Conference of Governmental Industrial Hygienists (ACGIH) Threshold Limit Value (TLV) TWA = Time-Weighted Average Volatile Organic Compounds = (VOCs) North American Free Trade Agreement (NAFTA) International Register of Potentially Toxic Chemicals (IRPTC). WHMIS: Workplace Hazardous Materials Information System MSDS stands for: Material Safety Data Sheet IRPTC stands for: International Register of Potentially Toxic Chemicals HAART = Highly active antiretroviral therapy = three-drug cocktail treatment for AIDS OTC means over the counter SSRI = Selective serotonin reuptake inhibitors CFC = Chlorofluorocarbon 1% = 104 ppm = 107 ppb conversion N2 (g) + 3 H2 (g) → 2 NH3 (g) molar mass of ethanol (C2H5OH) = 46.06 g/mol d= st m/s km/hr 1 cm3 =1 ml Micro =1 µ g = 1 x 10 -6 g NANO =1 n g = 1 x 10 -9 g The largest vol of these is 1.0 L 1000 mL 1.0 × 106 µL >>1.0 × 104 cm3 Chemicals causing malformation in newborns are: Teratogenic Chemicals causing changes in DNA are known as: Mutagens A concentration of 21.0 ppm for a gas in air is equal: 2.10 × 10-3 % A concentration of 51.0 ppb for a gas in air is equal: 5.10 × 10-2 ppm Based upon TLV-TWA which poses the most risk: ( answer is the least) Sulfur dioxide (2 ppm) Carbon monoxide (2.5 × 104 ppb) >>Ozone (100 ppb) Nitrogen dioxide (3.0 × 10-4 %) A worker is repeatedly exposed to a concentration of 2.50 × 10...

Words: 1912 - Pages: 8