Henko Detergentsgents

HENKO DETERGENTS HENKO DETERGENTS

1.1 INDUSTRY PROFILE 1.1 INDUSTRY PROFILE

The detergent market can

The detergent market can be classified into premium be classified into premium (Surf, Ari(Surf, Ariel), mid-price (Rin, Henko, el), mid-price (Rin, Henko, Tide)Tide) and popular segments

and popular segments (Nirma, Wheel, r! Whi(Nirma, Wheel, r! White)te)

•

• The" account for #$%, &'% and &$% of the market respectiel", hich is onl" *' perThe" account for #$%, &'% and &$% of the market respectiel", hich is onl" *' per

cent of the total market! cent of the total market!

•

• Regional and small unorgani+ed pla"ers still account for a significant &'% of the totalRegional and small unorgani+ed pla"ers still account for a significant &'% of the total

detergent market! detergent market!

•

• er capita consumption of detergent in ndia (.!/ kg) is loer than an" other countr"er capita consumption of detergent in ndia (.!/ kg) is loer than an" other countr"

1.2 HENKO INTRODUCTION 1.2 HENKO INTRODUCTION

•

• Henko is a Henko is a detergent from detergent from Henkel 0erman" Henkel 0erman" and no henkel and no henkel ndia 1td ndia 1td become a 2"become a 2"oth"oth"

1aboratories 1td! 1aboratories 1td!

•

• Henko stain champion launched in #33&!Henko stain champion launched in #33&! •

• s aailable in Henko stais aailable in Henko stain champion detergent poder, n champion detergent poder, henko stain champion matichenko stain champion matic

and henko stain champion bar! and henko stain champion bar!

•

• 1aunched in 43& in the South5 6irect competition to Surf 1aunched in 43& in the South5 6irect competition to Surf  •

• ToTop end prep end premium5 arket share 73%mium5 arket share 73% •

• 8ocused on stain remoal (highest order need for ndian consumer)5 re-treater8ocused on stain remoal (highest order need for ndian consumer)5 re-treater

 poerpearls (proprietar" technolog")  poerpearls (proprietar" technolog")

•

• High-on-9ualit", relatiel" lo-on-price propositionHigh-on-9ualit", relatiel" lo-on-price proposition •

• :arlier campaigns5 ositioning Henko as a better option :arlier campaigns5 ositioning Henko as a better option (usage of Surf as more a habit(usage of Surf as more a habit

than coniction) than coniction)

•

• ;elebrities< 8reebies< Regional association to strike emotional chord;elebrities< 8reebies< Regional association to strike emotional chord •

• =ske poer pearls kapro mein =ske poer pearls kapro mein geheraee tak >a"e geheraee tak >a"e aur daag ko >ar se nikal?aur daag ko >ar se nikal? •

• 8ocus on product performance superior as 8ocus on product performance superior as compared to rialscompared to rials •

• TeTechnological aspect5 No chnological aspect5 No social@emotional angle as suchsocial@emotional angle as such

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Industry Trends

 6etergent market has good penetration  but slo groth

 Saturation hits urban areas

 Bar form of detergents are losing out! remium 9ualit" s"nthetic detergents are eCperiencing groth due to drop in unit price!

 ;ompact detergents meant for ashing machines are getting slo entr"!

 rice competition among ma>or manufacturers getting more intense!

 South ndia offer good potential and groth!

 D0 has chosen an eCpans strateg" b" loering prices!

 H11 tr"ing to build brand lo"alt" for Surf b" innoatie ad campaign! ndustr" Structure

World4s third largest detergent market Total detergent market5 Rs *''' crore

6etergent poder5 Rs EE'' crore .E lakh tonnes@ annum Fther forms5

 Detergent bars (43%)  Liquid detergents

Compacts

 arket

 er capita consumption5 E!. Gg

 ndustr" groth rate5 *-% per annum

Industry Structure

 National Sales Distribution

I Urban – 60%

I Rural – 40%

Industry Structure

V a l e f  o r o e y V a l e f  o r o e y a r ! e t r e a t i o a r ! e t r e a t i o

• Jer" high penetration • 0roth

o Kp gradation from bars to poder  o ncreasing per capita consumption o ncreasing use of premium poders

1.3 !r"et#n$ %#& '( Hen"'

Pr'duct

 t is a premium laundr" detergent

 Remoes stains and kills germs

 t comes ith a neem flaor

P)!ce

 All ndia

 Super markets, h"per markets, retail stores and also aailable through online

Pr'%'t#'n

 rint media

 Teleision

Pr#ce

 Henko matic stain champion #kg-Rs!#3'

 Henko stain champion detergent # kg-Rs!#.$

Business strateg"

Henko Repositioning

!*'r P)!yers

 remium

I Surf :Ccel I Ariel

I Henko Stain ;hampion

 :conom"@id riced I Tide I Rin Shakti I Henko r! White  opular  I Nirma I Wheel

C'nsu%er +e,!-#'r

Across all segments5



The main attributes that consumers look for in a detergent are5

I Jalue for mone" (ho effectie the detergent is in cleaning clothes s

affordabilit")

I :ase of use (must dissole fast)  this as specific to households

hich do not hae ashing machines



Apart from the cleansing action, detergents should also be eas" on the skin

and must hae a fragrance5 Ariel Spring ;lean (roses), Ariel 8resh ;lean

(mogra)



ain factor influencing consumers4 eCpectations5

I mproed affordabilit"

I Ad campaigns

#t,#n ! se$%ent/

 Jer" little perceied difference in a particular categor" and a price point

 ;onsumers are more or less indifferent among leading brands as long a s prices are comparable

 This commoditi+ation nature of detergent business that is forcing pla"ers to fall in line ith loer prices superior 9ualit" detergents at an affordable price

Beteen to segments5

 With price cuts, up gradation

 With slodon, don gradation

C'%0et#t'rs

+r!nd S!)#ence

• Stain 8ree • 6isinfectant • 0erm Remoer  • H"gienic cloth

•  Herbal ith neem eCtracts •  Antibacterial, antifungal •  rrfan Ghan

+r!nd Per('r%!nce

• rimar" ;haracteristics5

 – With FC"gen to remoe Stains  – Secondar" ;haracteristics5  –  Neem Based

 –   8ragrance  – 0erm Remoer • Reliabilit"5

 – Fther Neem Based Henkel roducts 1ike argo And Neem Actie

+r!nd I%!$ery

• H"gienic

•  No Harmful :ffects • White Backgrounds • Tough on stains • ;lean surroundings

+r!nd ud$%ent

• Best 9ualit"5 0erm fighting capabilit" due to neem

• Reliable5 Fther products like argo, Neem actie and pril focus on natural ingredients • ;are for :nironment

• ore benefits at comparable prices

+r!nd Fee)#n$s • Safet" - Wellbeing • Securit" - rotection • ;onfidence +r!nd Res'n!nce • 1o"alt"

• Sense of ;ommunit"- Neem lantation • Brand engagement

P's#t#'n#n$

• Target Segment5

Women age group .$ to $' "ears!

iddle class income groups, mass segment

• ;ompetitors frame of reference5

HK1 ith Surf,  D 0 ith Tide and Ariel are the main competitors of Henkel!

▫ roduct attributes@benefits5

Surf :Ccel concentrates more on Stain remoing! Tide positions itself as a detergent for hitening of clothes! Ariel4s F6 is fragrance!

▫ Brand romise5

 Gills 0erms #' times better 

POP  POD Hen"'

• oints Ff arit"5

▫ Stain Remoer  ▫ Whitener  • oints Ff 6ifference5

▫ 0erm L 8ighter 

C'nsu%er De)#-er!4#)#ty Cr#ter#! F'r POD/

Releance5 $ per cent of consumers felt that oing to pollution, there as a need to make clothes germ-free, hile 3$ per cent ere ar" of skin infections from clothes that had germs een after a ash!

6istinctieness5 0erm - 8ighting

Belieabilit"5 adding neem , herbal properties , in the detergent makes the difference of germ fighting belieable!

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▫ :nhances life of fabric ▫  No Bad Fdour

▫ Saes time and electricit"

  Natural

• Waste ater not harmful to enironment • reents skin allergies

+r!nd 5!)ues

Brand antra5 Natural, Superior, ;onfident

+r!nd !r"et#n$ Pr'$r!%%es

•  Name5 Henko • S"mbol

•  Ne design and packaging

▫ ntroducing ne SGK (E' gms) • 2ingle

=Sabka Hai :k Hi Naara , Henko Hai Gapdo Ga Sahara?

Pr'%'t#'n!) c!%0!#$ns

• 6irect marketing  demonstrations in large societies to sho effectieness of germ free

 propert"

• 6istributing T-shirts, caps ith ne s"mbol and compan" alues ! Fn the spot

complementar" gift for people at demo

• Adertising

▫ TJ edia ▫ rint

• Brand Ambassador5 rrfan Ghan

=Safai Ga Na+aria Badlo?

+r!nd 0er('r%!nce %e!sure%ent

• ;larit"

▫ Rate the brands --Surf :Ccel --Tide -- Henko -- Ariel

on the attributes mentioned belo5

--Stain free --0erm Remoer --Whiteness -- ;leanliness -- 8ragrance

• Releance

▫ $ per cent of consumers felt that oing to pollution, there as a need to make

clothes germ-free, hile 3$ per cent ere ar" of skin infections from clothes that had germs een after a ash! Neem is a knon natural disinfectant!

• 6istinctieness

▫ Ksing Scales used in 6S methodolog" • ;onsistenc"

▫ Across communication

Gr'6#n$ !nd sust!#n#n$ +r!nd E7u#ty

• Brand ill stand out as a Mnatural4 product

• Frgani+ation4s continued focus on enironment protection  0o 0reen nitiatie • ;SR actiities for customers as ell as ndustr"

Hen"e) Nee% P)!nt!t#'n Pr'$r!%%e

• 1aunch of MHenkel Neem lantation rogramme4

• All branches of Henkel ill hae Neem trees on campus • HN ill also hae tie-ups ith corporates

• E rupees from eer" unit sold ill go toards Henkel Neem lantation programme

Cust'%er C'nnect

• ;ustomers gie back to nature

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• Sense of responsibilit" inculcated

• Spread of aareness about global impact of deforestation

Rec'%%end!t#'ns

Being the H:NGF the eakest brand among the other ashing poder brands, here are some recommendations5

 The" should promote and adertise their brand more like other brands are doing ith  brand personalit"!

 There should be proper distribution channel and should follo S; techni9ues!

 The" should decrease the production cost so R can be inched don!

 The" must obsere the competitors of ashing poder about hat strategies do the" use!

 The" can come up ith ne strateg" like online selling or free home de lier" of ashing poder!