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About the brand

Ghadi detergent powder and cake is manufactured by Rohit Surfactants


Private Limited (RSPL), which is a Kanpur based company with 5000 crore
conglomerate in India. It was founded by 1987 and was launched when the
market was already dominated by big brands like Surf and Nirma. The brand
was performing fair until it got highlighted when it surpassed HULs wheel
and gained the top spot in terms of market share in 2012. According to India
Detergent Market Outlook, 2021, the overall market for detergent is growing
with a CAGR of 13.06% from the last five years. The brand was first launched
as a detergent in Kanpur, Uttar Pradesh and it is said that Ghadi is inspired by
a brand called Nirma which was launched few years before Ghari was
launched.

Critical Analysis
Brand Market standing
The Brand when it was launched gave a stiff competition to Nirma which was
then the market leader. The Brand majorly focused on regional areas. It
became the market leader in 2012 defeating Surf. The brand operates in
detergent section where it provides two varieties a detergent powder and a
cake. Its main focus has been its area of origin which is Kanpur where the
brand is known by work of mouth.
These product operate in different sizes and form as follows

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Ghadi Detergent Cake


Size

Retail

Price

(Rs.)
300gms

15.00

190gms

10.00

95gms

5.00

Ghadi Detergent Powder


Size

Retail

Price

(Rs.)
3 Kg

147.00

1 Kg

50.00

500 Gms

26.00

190 Gms

10.00

80 Gms

5.00

30 Gms

2.00

As per 2012 the market share for Ghadi was 17.3% as compared to Wheel and
Tide which was 16.9% and 13.5% respectively. Ghari has believed in
affordable pricing and trial and use factor which helped them to spread word
of mouth by the users about the product. Today it stands second next to HUL
brands Surf Excel, Wheel and Rin.

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Competitive Scenario
The detergent Market in India is divided into three segments namely
Premium, Mid Scale and Economy.
Products like Surf Excel and Ariel come under the Premium Brand, Rin and
Tide comes under Mid Scale and Ghari, Nirma and Wheel comes under
Economy. The market share each segment hold is given below which shows
the major segment is occupied by the economy segment taking 45% followed
by mid scale which covers 40% and premium covering only 15%.
Market Share on the basis of Segment
50

Market Share

40
30

Economy

20

Mid Scale
Premium

10
0

Segment

Market Share

Total
40
35
30
25
20
15
10
5
0

34
22.8
18

Ghadi

12

13.2

Nirma

Others

Surf, Wheel and


Rin

Tide, Ariel

Products

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Talking about only the economy sector where our competition lies, Ghari is
doing well with being the second largest selling detergent brand in India with
3 billion turnover in 2012-13. The brand restricted itself to Uttar Pradesh
majorly which account for 12% of countrys FMCG sales. Ghadis turnover
is growing manifold with 4423 cr according to its financial report.

The chart shows where Ghadi lies with regards to quality and price in
comparison to its competitors.

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Brand Strategies
Ghari targets housewives in small town and villages, who are extremely value
conscious buyers and willing to switch brands. The only USP is the Value for
Money proposition. Hence the brand must remain approachable for the
consumers.
The different strategies used by RSPL for Ghari:
1. Achieve higher market penetration in existing markets and simultaneously
exploring new markets :
Most of the Ghari detergent sales come from Uttar Pradesh, which is also its
birth place, Madhya Pradesh and Maharashtra. Recently it has started
distribution in 8 more states, thus making its presence in a total of 20 states
across the country. Entering new markets doesnt mean that the existing
markets are saturated as far as Ghari detergent is concerned. Even in the
existing markets, the market share of the competitors was decreasing while
the industry as a whole was growing.
2. Providing Incentives to the Dealers :
Ghari detergent provides a profit margin of 9% to its dealers, which is
substantially lower than the standard 12-13% for premium brands, and at the
same time, higher than the 6-7% being offered by the competitors in the same
segment. Thus the company has been working towards creating a strong
dealer base while keeping its prices low.
3. Segmentation Strategy :
For any successful marketing plan segmentation is the first key step. The
organization must carefully craft its strategy to exploit the market potential.
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RSPL being a small firm could not afford expensive marketing strategy so it
has segmented according to it. Generally market is segmented on the basis of
demographic, geographic and psychographic variables but RSPL has mainly
concentrated on geographic variable.
4. Pricing Strategy :
Keeping in mind its target market, i.e. the lower end of economy, the company
has, as far as possible, avoided passing on the burden of rising raw material
costs on to the customers.
5. Regional Focus :
Due to its financial inability to compete with HUL and P&G in other states,
RSPL had launched Ghari detergent in Uttar Pradesh. It focused on
developing an intense distribution network to reach the customers effectively.
Milestones achieved
Second largest-selling detergent in the country
Ghari was able to beat Nirma because of well-established in Uttar Pradesh,
Indias largest population.
Communication Strategies
The Communication srategy of Ghadi Detergent is based on the line Pehle
istemal karrain, phir vishwas karain (First try it and then believe it) to induce
customers to try out the product. This approach has helped the company
convert non-users and other brand users into user.
The first campaign was the Ghari Detergent Express (a summer special) in
2008 that ran between Lucknow and Guwahati for two months
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Taking the cue from there, Ghari has now advertised in Pushpak Express that
runs between Lucknow and Mumbai. The brand can also be seen on railway
crossings in West Bengal and Uttar Pradesh. Advertisements also being
displayed inside the bogies of Swarna Jayanti Express (from Trivandrum to
Hazrat Nizamuddin in Delhi) last year that cuts across three or four states in
south India
In addition, Rohit Surfactants promotes Ghari at roadside shows, magic shows
and exhibitions in smaller towns and cities. Customers are unlikely to see
other brands at these places an innovative idea to break the clutter. The
magic shows, have given Ghari good visibility in cities like Jaipur, Indore,
Kota, Alwar and Kanpur. About 30 company-owned vehicles are used for outof-home advertising. Of late, the company has taken some tentative steps
towards the popular media. It has sponsored a show, Rakt Sambandh, on
NDTV Imagine. Also, instead of going with celebrity endorsement, the brand
has left it on the consumers to try the product and decide if they like it, just as
it claims in its campaign. It also promoted the swatch bharat abhiyan through
its ads where it describes as when we clean India our clothes get dirty and
when our clothes get dirty we need Ghadi detergent powder to clean them. So
dont fear to clean India as we have Ghadi to clean our clothes.

Market Analysis
According to the analysis of the market about the brand we diagnose this
brand under STAR category.
Whats good about the brand?
Strong reach to the rural consumer.

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The tagline Pehle istemaal kare fir wishwaas kare has struck a chord
among the price-sensitive mass market.
High push by retailers and good words of mouth among consumer.
Good branding through magic shows, TVCs and print ads.
Strong and wide distribution channel.
Available in different weight and price.
The price of Ghari detergent comes at a price less than Tide, Ariel and
Surf Excel.
Since decade Ghari is very clear about its targeting audience and how
to communicate about its offerings.
Strategic plan to increase top line
Vertical stretch
Ghari should launch detergent with red and blue elements which helps
to remove stains fast.
It should launch detergent with lemon flavor and flowers flavor to give
wide range to customer.
It should add plastic coat in cake to work long lasting.
Brand Extension
It should launch Ghari neel to compete in neel market.
It should launch Fabric liquid to make cloth alive after washing.

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Critical observations
Research suggests that the brand is known for its quality. People buy it with
its name. It is a big hit in places like Kanpur where the brand was originated.
People who do laundry and buy it for their business. The margin given to
dealers and distributors and retailers is low compared to the competitors brand
but due to the sales in volume, they prefer to keep this brand and people
literally ask for ghadi detergent specifically rather than saying give me any
detergent. Also, the findings suggests that it is a bit highly priced but people
buy it for its quality.
Another research from the whereabouts of Nagpur area suggests that small
mom and pop stores keep the brand along with its competitors brand like
nirma and wheel and the margins given to retailers is comparatively low by
ghari. Again the reason for keeping the brand is its quality but people prefer
the prices to be low. Wheel and Nirma is priced a bit lower than Ghadi. The
sales are mostly of detergent which is the second largest in its segment. The
cake is a bit weak as it is not long lasting, hence people avoid it. But as far as
powder is concerned, it is deemed to be better than wheel and nirma in terms
of quality. Maximum sales come from Rs. 2, RS. 5 and Rs. 10 sachets which
people buy on the day to day basis to meet their daily needs. Instead of
spending on a 1 kg pack they prefer to spend less in a go and buy small packs
to carry their daily work. Some say that Ghadi`s promotional strategy is not
good and there by people dont prefer the brand whereas competitors has very
good hold on their promotional strategy.
Also, since products like these cater to the rural market they are rarely found
on the shelves of the supermarkets but products like wheel and rin are still
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found on the shelves which increases the brand visibility. The retailers doesnt
like to keep the cake of Ghadi as their demand is low because of low durability
and also the margin provided to the retailers and whole-sellers is low. One
drawback which still affects ghadi`s sales is its pricing where the price is
comparatively on the higher side.
Understanding the rural market of Dorli (Nagpur) retailers say that they sell
what gave them higher margin. Most of the customers dont even talk about
the specific brand they just generalize and say they want a washing powder or
cake whatever the case may be. Only few customers talk specifically that they
want Ghadi as it provides fragrance compared to other brands and the smell
which comes out from the clothes is really soothening and they like it. Here
people generally prefer Rs. 2 and Rs. 10 packs and they hardly differentiate
the price as they are not aware that it is highly priced because they dont buy
1 kg packs where comparison can easily take place.

Analysis of observations
With these research one can understand that if Ghari could think of changing
anything in the current strategies it could be its pricing strategy which is
giving a big hit to the company market share in the market. If it lowers the
price which comes under the economy bracket and is in sync with the price of
Nirma, Wheel and Rin it can capture a greater market share and the profits
can be covered by selling in huge volume. Also, like the tagline suggest first
use it and then trust it one must improvise its promotional strategy with
providing trail sachets in local stores and newspapers or door to door testing
which will help them increase the market base of their consumers. Also, they

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can go for painting the shops of rural markets with the brand name which will
give the visibility to the brand.
It could also enhance the durability of cake which will help them to make
good sales of the cakes because Rin has a good durability in terms of cakes
and people prefer to buy cakes as there are comparatively cheap and they
consume less water and last longer in comparison to detergents.

SolutionsSolutions in order to take the current products at an above level


Ghari Detergent
Since the detergent quantity of 1 Kg. costs Rs. 50/-, in comparison with
Wheel & Nirma, which costs 38/-; some consumers prefer to avoid 1
Kg. packets.
Consumers, mainly tier 3 & 4 cities consumers and rural consumers
believe that due to detergent in abundance leads to wastage of the same,
they mostly prefer smaller packets.
The demand for sachets of different quantity variants has been
increasing ever since its availability and Rs. 10/- quantity variant has
been selling as the best of all in the present number of sachet variants.
In order to increase demand exponentially for Ghadi`s detergent, the
company can also launch Ghadi with reduced prices, since many people
do not buy Ghadi because they think it is overly priced than other
detergents in its segment i.e. Wheel & Nirma.

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Ghari Cake
Margins provided to retailers and whole-sellers are comparably lower
than other detergent companies providing them. So, the company
should increase the margins which would interest the whole-sellers and
retailers in keeping the Ghari cake.
Its cake`s demand is also not positive like that of detergents, but
retailers and whole-sellers keep it in case a customer demands it. But
according to the research in Nagpur & Kanpur, retailers are least
interested in keeping cakes. So in order to increase the demand;
campaigns, ads through various mediums, etc. should be used.
The durability of Ghari cake is not like that of its competitors i.e. Wheel
& Nirma; so improving the durability of Ghari cake will also result in
increase of its demand.

Strategic Brand Plan


Before making the strategic brand plan let us understand what the consumer
expects from us good quality, low price, easy availability, offers and
discounts etc.. They also want the brand to be reliable and gives the assurance
that they clean the clothes. Also, we must understand who are our customers,
today our primary customers are the rural market and the brand is thinking of
an extension in the urban market as well to widen its reach. Also, we must
understand what is the competition in the given segment like we say Wheel
and Nirma are its competitors in economy segment and if the brand come out
with something new for the middle segment it will face competition from tide
and Rin. Not only this, the prevailing market scenario is also important.

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As said positioning is the key to successful branding lets first understand the
positioning of this brand. The brand is targeted to the rural market which
provides good quality with a medium price line. It promises the experience to
the customer thus saying First use it and then trust us. It has spread itself to
few regional areas and now the brand is existing in every area no matter how
small the market share it. In Dorli, it also faces competition from the local
brand like Swaraj etc..
Now that we know the product is doing good in its market let us define a
strategic plan to increase the product life cycle of the brand.
Ghari can work on two strategy -1. Vertical stretch, 2. Brand extension
As during research we found that Gharis competitor use red and blue
element which washes the cloth very neat and clean. Hence, under
vertical stretch, ghari can add red and blue elements which helps to
remove strains fast and clean it better. This strategy will help to grab
attention of more consumer and beat some competitor which are
already active in market with this innovation like wheel. They can name
it as Super Ghadi with power boosters. This will give the new face to
the brand and rejuvenate the brands image in the minds of the
customers. Lets first make the brand colourful and powerful by adding
power boosters and launching it in a very innovative way. Changing the
packaging a bit to suit the brand new image and advertising it in local
dailies and shop floors giving it a brand new look. Also, for trial we can
attach Rs. 2 sachets in local dailies to give them a free experience so
that they can use the brand to trust Ghadi.

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During research we also found that ghari has very limited flavor while
its competitors has wide ranges of flavor like surf excel, wheel. Hence
it should add lemon and flowers flavor like jasmine or lily to give wide
range to consumers and gains advantage over competitors like Nirma
and local brand like Fatka, Swaraj etc and give reason to potential
customer to buy the product. Launching the product in various flavours
will help the consumers provide variety and they can choose from the
wide range of products. Its like its better my brand eats my brand rather
then it is eaten by someone else.
With these two strategies the brand can aim at targeting the middle segment
also where it can provide variety and give competition to products like Tide
and Rin.
It should add plastic coat in cake as it has low sale because as during
research we found that it is not long lasting hence people avoid it. When
compare to its competitor like Rin, wheel who also has same kind of
problem but product of these brand has a little longer lasting. Hence
adding plastic coat will gain high advantage over its competitor. One
should not lose focus on the cake as if this can be given plastic coating
like HUL does it for Vim it can last longer and the durability of the
brand can be improved as people in rural areas prefer to use cake as it
is long lasting. Also, we can change the paper packaging to plastic
packaging to make it look rich and attractive.
Under brand extension, ghari should launch neel as in this product
segment, there is less competition as compare to detergent industry and
major player is Ujala. Ghari can gain huge advantage of it as it is trusted
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brand among consumers and has strong distribution channel. Everyone


use clothe whitener to brighten the clothes and developing the
technology for this will help the brand form a new image in the minds
of the customer. This will also help the brand to jump a ladder and can
make its mark in the mid segment also. Entering a new market will help
the brand to widen its consumer base. Ghari can name its whitener as
Sun Ghadi a name which would represent as white as sun.
When the Sun Ghadi is successful in the market one can think of other
extensions as well like launching a fabric conditioner or liquid for woolen
clothes. With Sun Ghadi the brand steps into the mid range market and the
brand will have the whole new market to experiment upon. Concentrating on
the same the brand should not forget to offer discounts or offers in the rural
market in terms of cake with improved plastic coating and somewhere a free
flowing brand image which fix into the matrix of late mover advantage.
It must also communicate about the newer benefits of the brand well to its
consumers through radio and regional television. Paining the brand name over
the walls of the rural area would also improve the visibility. A campaign can
be held where all the women of the villages are made aware about the benefits
of the brand and free trial packs must be given as incentive for being the part
of the campaign.
Ghari should launch fabric liquid which make cloth alive back after
washing and chances of being successful this product is quite optimistic
as players are not much.
It should launch special liquid for washing woolen cloths as it is
difficult to wash such cloths.
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The liquid should go deeply inside woolen and without harming the
woolen and damaging color, it should wash gently as well as in liquid
product, we would like to launch different flavor to feel fresh and good.
All these strategies would help the brand increase awareness about the brand
and that it can also define the new meaning about the brand.
A future prospect could be
Launching the brand with the name Ghadi Gold a much improved
version of the brand in terms of quality and pricing it at Rs.90/kg would
help the brand define its brand image in front of its consumers.
Their recent TV commercial shows that they are positioning their brand
to relate with the "Swachh Bharat Mission" . Through this ad they are
trying to show that they have revamped their product and its now more
powerful than before. They should also capitalize on that as it's a very
trending topic right now after the Prime Minister Shri Narendra Modi
started this campaign on a national level it has gained a lot of publicity.
Since majority of their consumers are in rural India they should use
such marketing strategies which is relevant to the market, they should
also keep in mind things like socio-cultural differences across regions,
variation in population size and population density, media exposure
levels, differences in income levels and patterns of income flow, family
structure.
Since its a brand based in Kanpur they are pretty well positioned in
central, western and eastern parts of India. They should now start
marketing their product in the southern parts of India, while doing this
they should keep in mind the taste and preferences and cultural
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differences from other parts of India. The company is planning to set


up a plant in Karnataka and they have already acquired land in Bidar.
All these future strategies will have in uplifting the brand and making it more
visible to its consumers. Also, the variety will give more choices to the
customer to choose from and the product basket and will enable them to
choose this brand in every way possible. With these strategies in mind it will
provide the huge range of cleaning solution where customers can relate it to
big brands and this will lead to increase in positive brand perception.

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