Competitive Analysis

Families in India wash by hand for many reasons. Either they don’t have an access to a
washing machine or they just prefer to wash certain fabrics or tackle certain stains by hand. Bars are
more preferred as they tend to have greater useful life than powders and are priced significantly
less. The rapid shift towards powders is due to the increased penetration of washing machines into
the livelihood of rural and urban demography. Detergent products are available in premium, mid-
priced and low priced varieties according to the various needs of the Indian customers. Elite class of
the society tend to use the premium quality detergent powders for their daily laundry needs. Not
much growth is observed in mid-priced detergents. It was also noticed that mass market segment
uses both medium priced and low price detergents. Detergent powders belonging to each segment
have their own premium brands based on hand wash or machine wash.

Detergent Market Segments

1. Premium detergents or Compact detergents  Elite class of the society.

2. Economy or Mid-priced detergents  Middle class of the society.

3. Popular detergents  Lower income group in the society

Table-1: Brands in each segment

Premium Detergents Mid-Priced Detergents Popular Detergents

Surf Excel, Ariel Wheel, Rin, Tide, Henko Sunlight, Ghadi, Nirma, Fena,
Mr White, Pathanjali

Table-1 shows various brands with respect to their segments; however the overall market
shares is always split between the organised and unorganised sectors. Unorganised sector was the
second in lead in India during the FY17-18 (Figure-1). Their shares declined and continues to
decline due to rapid surge in research and development in the organised sector. Procter and
Gamble (P&G) and Hindustan Unilever (HUL) are increasingly using resources to update themselves
with respect to lower competitive price set by unorganised industries in regional areas. Their
experiments were quite evident with increase in their corresponding market shares in the
subsequent FY18-19 (Figure-2). Prime reasons for declining usage of local brands are their
inefficiency to compete with increasing usage of washing machines with focus on particular region
and effective targeting and distribution of organised sector brands in rural and local markets across
nation. Major gainers from previous financial year are P&G and RSPL with their market share
increased by 12% and 52% respectively. New comers like Pathanjali have done fairly well as their
sister products have gained instant response from the consumers/public. Jyothi laboratories with
their premium products Henko and Mr White, popular brands few years before finds themselves in a
state of ‘going concern’ brand.
 2017-18 Market Share

HUL
RSPL
26% 31% Nirma
FENA
3% P&G
2% Jyothi
17% 13%
Pathanjali
5%
Others
3%

Figure-1: Market share of detergent manufacturers in India in the year 2017-18

2018-19 Market Share

HUL
RSPL
3% 18% 32% Nirma
1%
FENA
19%
20% P&G
Jyothi
3% 4% Pathanjali
Others

Figure-2: Market share of detergent manufacturers in India in the year 2018-19

Perceptual Mapping:
Various factors determine the perception of brands among the consumers. Attributes like,
quality of clothes after wash, freshness, removal of tough strains, performance with hard water,
foam last etc. There is a general catch on how much clothes 1kg of detergent powder can wash,
figure-3 shows the perceptual maps been plotted using price and no of clothes washable by keeping
their subsequent market share as variable to the two factors. P&G an outlier has highest number of
clothes washable however their price is subsequently higher, this has greatly affected their strategy
in penetrating into the market till now. On basis of customer perception they are more reliable than
the rest of the brands. Other brands in organised sector are populated close to each other ,with each
brand providing similar price to cloths washable range. The strategy of being together among the
competitors and updating themselves on improvement of competitors has resulted in HULs‘ increase
in market share in the last decade.

Perceptual Maps of different brands

HUL

Procter and Gamble

Clothes Washable/kg

RSPL

Nirma

Pathajali

Fena Pvt Ltd

Jyothi Laboratories
Price/kg

Figure-3: Perceptual Map of different manufacturers with respect to Price & Clothes washable per kg

HUL a leader in the detergent industry has 4 different brands in each of the segment.
‘Sunlight’ the first brand to be introduced by HUL in unpartitioned India, also once a popular brand,
with modernisation of world has to deterred from being manufactured . The concentration shifted
then on medium segment-Wheel and Rin. Same product was launched again recently with renewed
market strategy but with more competitors, penetration wasn’t there as expected (Figure-4). There
is an even distribution of quality with respect to the prices offered. Market share of each brand of
HUL are in close proximity with each other. Market booster for HUL is surf excel which is in both
premium segment and is well penetrated into the market. Reason for them being the overall leaders
in detergent sector is the diversity of their brands while other competitors follow niche segments.

HUL Brands Perpetual Maps

Clothes Washable/kg

Sunlight
Wheel
Rin
Surf Excel

Price/kg

Figure-4: Perceptual Map of different manufacturers with respect to Price & Clothes washable per kg
Table-2 shows the comparison of each brand irrespective of segments they fall in. It is evident from
the fact that price are not really a constraint for consumers as they prefer region wise dominant
players. Ghadi a popular detergent powder is the overall leader in a single brand of sale but they are
more concentrated over a specific region. HUL presence is across the nation that reduces their
market share of a single brand overall. A promotion in any forms (media, stores, flash mobs etc)
widely determines on how public perceive the brand. More the advertising frequency higher the
reach. ‘Sunlight’ brand of HUL in going concern category, promotional activities were stalled and
market share is localised only to existing niche user. Even though Jyothi laboratories (Henko and Mr
White) are diversified in two zones north and west their market share is low due to lack of
promotion for the particular brand. Mr White has almost lost share though they are priced
extremely low. Surf excel in its premier segment has the lowest price in comparison with Ariel.
Pathanjali are more focused on improving their market share through outlets, there are at least 2-3
outlets in each of the cities. Such extensive promotions have placed them in a position to compete
with market leaders.

Different Product Range Market Dominant Price

Brands Promotion Activities
Share Zones Value/kg
Premium Medium Low (frequency 0~10)
Sunlight x 0.32% Central 72.75 No Promotion
Wheel x 5.76% West 120 Web Advertisements
Rin x 11.84% PAN 81 Extensive Media (9)
Surf Excel x 14.08% PAN 102 Extensive Media (9)
Tide x 10.99% PAN 102 Extensive Media (6)
Ariel x 8.29% PAN 171 Extensive Media (8)
Ghadi x 19.61% North 56 Partial Media (4)
Nirma x 4.34% West 46 Partial Media (5)
Pathajali x 3.1% PAN 115 Outlet Promotions
Fena x 2.96% West & East 60 Low Media (2)
Henko x 0.70% North&West 111 Low Media (2)
Mr White x 0.25% North&West 47.25 Almost Nil

Table-2: Different segments and their promotional activities

Market’s Condition:
Market Leader’s Follower’s Lagers
HUL (Surf Excel), RSPL (Ghadi) P&G (Tide, Ariel), Nirma, Jyothi Laboratories (Henko, Mr
Pathanjali White), Fena