Porter's Five Forces, Porter's Generic Strategies, STP, Perceptual Map for all of the following. 1) Surf Excel vs. Ariel, 2) Nirma vs. Wheel, 3) Tide vs. Ghari This .ppt originally contained video but I had to remove them due to size issues. This presentation links all the above mentioned brands with Porter's 5 forces model and Porter's Generic Strategies.

1. Detergent Market in India

3. Indian Detergent Market Landscape
Current Market Size (Organized Detergent Market) 2015: Rs.15,000 Crore
Total Volume 2013 (Production): 1.9 Million Tonnes
CAGR (2012-2015): 11% approx.
Washing Machine Penetration in India: 8.8%
Indian Population Division:
Urban: 33%
Rural : 67%
Households Owning Washing Machine:
Urban : 27.5% of all urban households
Rural : 0.6% of all rural households
Source: Market Research Report on Detergent Industry in India by Niir Project Consultancy Services (NPCS)

4. Indian Detergent Market Landscape
Detergent
Powder Bars Liquid

5. Indian Detergent Market Landscape
1959 • HUL launched Surf Excel.
1969
• Nirma was launched.
1987
• RSPL launched Ghari.
1988
• HUL launched Wheel.
1991
• P&G launched Ariel.
2000
• P&G launched Tide.
Timeline:

6. Indian Detergent Market Landscape
34
22.8
18
12
13.2
Market Share Division
HUL
Ghari
P&G
The Detergent market is dominated by
following major players:
1. Hindustan Unilever Limited (HUL)
2. Rohit Surfactants Pvt. Ltd. (RSPL)
3. Procter & Gamble (P&G)
4. Nirma
5. Jyothy Laboratories & Others

7. 15%
40%
45%
0%
10%
20%
30%
40%
50%
Premium Mid Scale Economy (Mass)
Detergent Market Segmentation
Surf, Ariel Rin, Tide
Ghari, Nirma,
Wheel, Fena
Brands:

8. Porter’s
Five Forces
Model
Competitive
Rivalry
Threat of
New
Entrants
Bargaining
Power of
Suppliers
Threat of
Substitutes
Bargaining
Power of
Buyers

9. We will measure the forces on the following scale:
Very Low Low Medium High
Very
High

10. 1.) Competitive Rivalry
Premium Price Segment
• High
• High because easy brand
switching.
• For Tier I and Tier II cities
only and competitive
rivalry is high there.
• Surf Excel, Ariel, Henko
• Surf Excel & Ariel face
tough competition from
each other, where Ariel
offers fragrance, Surf
Excel offers a bit lower
price compared to Ariel.
Mid Price Segment
• Very High
• Very high because more
number of players, no
loyalty, and customers
switching to different
price segments.
• Tide Plus, Rin, Super
Nirma Blue, Mr. White,
etc.
• Tide, faces lot of
competition from Surf as
well as Ghari, Ghari being
low priced and good
quality.
Low Price Segment
• Very High
• Very high as Customers in
this segment, easily
switch brands based on
small price differences
also. Moreover markets
are toppled easily by
distribution strategies
and promotions.
• Nirma, Wheel, Ghari all
face fierce competition in
this segment based on
price, product
differentiation,
distribution strategies

11. 2.) Bargaining Power of Suppliers
Premium Price Segment
• Low
• Main ingredient required
to be procured from
suppliers is soda ash which
is not an ingredient hard to
make.
• Suppliers are ready to
provide good quality soda
ash.
• But still quality matters
and hence bargaining
power of suppliers is low
but not very low.
• E.g. Surf, Ariel, etc.
Mid Price Segment
• Very Low
• Multiple suppliers exist,
who provide desired
quality of soda ash to
these companies and
hence they don’t have any
competitive edge.
• Moreover, suppliers do not
want to lose huge
contracts with behemoths
like P&G and hence they
have low bargaining power
• E.g. Tide
Low Price Segment
• Very Low
• Many suppliers of soda ash
• High quality of soda ash is
not required and it can be
procured from any
supplier.
• Companies like Nirma
produce their own soda
ash (Backward Integration)
• Hence suppliers have very
low bargaining power.
• E.g. Nirma, Wheel, Ghari,
etc.

12. 3.) Threat of New Entrants
Premium Price Segment
• Medium
• Entry is difficult as there
are difficulties to get
premium loyal customers.
• But still with
differentiated products it
is still conquerable.
Hence the medium price
segment.
• E.g. Henko from Henkel
entered the premium
price segment but then
failed miserably.
Mid Price Segment
• High
• Entry is easy as there are
low barriers to entry
• As it is FMCG industry it is
easy to achieve high
economies of scale.
• E.g. Tide was launched in
2000 ,still it was able to
get a decent market
share
Low Price Segment
• Very High
• Entry is very easy as there
are low barriers to entry
• Economies of scale
• In this segment, even a
small price difference can
topple markets of a
brand.
• E.g. Ghari launched their
business in 1987 when
Nirma was at its peak but
later the it overtook
Nirma.

13. 4.) Bargaining Power of Buyers
Premium Price Segment
• Medium
• Any product with a good
price difference or
differentiated features will
be opted by buyers.
• Hence price difference does
change buyer behavior but
differentiated products also
tend to have their own say
in market.
• E.g. When Ariel came out
with detergents with
fragrance flavors, customers
switched to that even when
Ariel charged higher price
then surf excel
Mid Price Segment
• High
• Due to higher competition,
bargaining power of buyers
is usually high.
• If companies have to resort
to offers and lesser margins
then that shows high
bargaining power of
customers.
• E.g. Tide generally attracts
customers with “20% extra”,
etc. type of offers which
shows buyers have good
bargaining power.
Low Price Segment
• Very High
• More number of players,
customers in this segment
are very cost sensitive. More
offers have to be provided
to attract customers. Buyers
also demand quality
improvements in products.
This shows very high
bargaining power of buyers.
• E.g. Nirma, Wheel, Ghari.
Ghari offered better quality
and buyers switched to it
and this Nirma & Wheel had
to counter this with various
measures.

14. 5.) Threat of Substitutes
Premium Price Segment
• High
• In premium segment,
frequency of purchase gets
affected as customers able
to pay premium prices also
tend to spend more on
maintenance. Hence they
are preferring Dry Cleaning
more which affects the
premium segment more.
Other alternatives,
presumably high priced,
makes this segment highly
vulnerable.
Mid Price Segment
• Medium
• Any New technologies, like
liquid soaps, etc. can easily
replace the existing players/
brands.
• More people moving to
higher segments, and
increasing disposable
income makes this segment
little bit vulnerable to
alternatives like Dry
Cleaning. But still the
market is huge and the
whole market cannot move
to alternatives, hence threat
is medium.
Low Price Segment
• Low
• There is no economical
alternative/substitute which
is cheap enough to replace
already low-priced
detergents.
• So the threat from
substitute products /
alternatives for fabric-
washing is low.

15. Porter’s
Generic
Strategies
Cost
Leadership
Differentiation
Cost Focus
Differentiation
Focus
FocusBroadTargetNarrowTarget
Lower Cost Differentiation
Competitive Advantage
MarketScope

17. Surf Excel
Launched in 1959 in India as 1st
Detergent Powder.
One of the brands under Unilever.
Ariel
Launched in 1991 in India as
Detergent Powder.
One of the brands under P&G.

18. Surf Excel Product Range
Surf Excel
Matic
Surf Excel
Quickwash
Surf Excel
Easy Wash
Surf Excel
Liquid Wash

19. Surf Excel Product Range
Surf Excel
Matic
Surf Excel
Quickwash
Surf Excel
Easy Wash
Surf Excel
Liquid Wash
Surf excel Quickwash with X-tra clean particles combines the power of stain
removing products like blue, bleach and lemon. Multiple stains are removed
with just 1 product.
Surf excel Easy Wash is a superfine powder, in which tough stains are taken off
in a jiffy. It is made with superior technology which unleashes the power of 10
hands
Works in high water levels of front load washing machines. It has hand rub action
power and is value for money. For 2 different types of washing machines, it offers
2 products: A.) Surf Excel Matic Top Load, B.) Surf Excel Matic Front Load.
Surf excel Liquid Detergent works with the Dip Dab Drop formula. It has better
dissolution with superior fragrance. It offers ‘Color care’, and is safe for hands.

20. Ariel Product Range
Ariel Color
and Style
Ariel
Matic
Ariel
Complete+
Ariel 24
Hour Fresh

21. Ariel Product Range
Ariel
Matic
Ariel
Complete+
Ariel 24
Hour Fresh
Ariel Colour
and Style
Ariel Complete+ removes tough stains in just 1 Wash. Especially formulated for
semi automatic washing machines, Ariel’s cutting edge technology to provide
impeccable cleaning
Ariel 24 Hour Fresh provides tough stain removal along with long lasting
fragrance. Advanced perfume technology provide impeccable clothes along with
refreshing fragrance that lasts upto 24 hours.
It provides the Best stain removal in 1 Wash. Especially formulated for Fully
Automatic Washing Machines. Best used for Front & Top Loading Fully Automatic
Washing machines
Ariel Colour & Style is specifically created for coloured clothes to remove tough
stains and prevent colour fading. With Colour Lock Technology, it ensures
coloured clothes stay shining like new.

22. “Daag
Achhe
Hai”
“Maa Ke
Haathon
Jaisi
Safai”
“#ShareTheLoad”
Ad Ad
Ad

23. Surf Excel ArieL
S – Segmentation
Premium Segment, Detergent.
Mom’s washing children’s dirty clothes by
T – Targeting
Blue: All mid scale and premium segment
buyers,
Matic: Washing machine users
Bar: Medium and Low Income families
Quickwash: Consumers in water-scarce and
hard-water regions.
“Daag Achhe Hai”
P – Positioning
Positioned as a quality product at
comparatively lower prices, in premium
segment.
S – Segmentation
Premium Segment, Detergent.
Nuclear families with high income-levels.
T – Targeting
Upper middle class – rich class of the society
wanting superior quality.
Washing machine users are also targeted by its
product Ariel Matic.
Customers wanting fragrance and color
preservation.
#ShareTheLoad
P – Positioning
Positioned as superior stain remover, offering
fragrance and preserving colors, for a premium
price.

24. 2kg 1kg 500gm 100gm 60gm 25gm
Rs405 Rs210 Rs115 Rs20 Rs10 Rs5
2kg 1kg 500gm 100gm 60gm 25gm
Rs437 Rs240 Rs130 Rs40 Rs20 Rs10

25. Porter’s Generic Strategies
Cost
Leadership
Differentiation
Cost Focus
Differentiation
Focus
Focus
Broad
Target
Narrow
Target
Lower Cost Differentiation
Competitive Advantage
MarketScope

27. Nirma
Launched in 1969 in India as Very
Low-cost Detergent Powder.
Nirma brand launched by a chemist
named Karsanbhai Patel
Wheel
Launched in 1988 in India as
fragrant low cost Detergent Powder.
One of the brands under HUL.

28. Nirma Wheel
• In 1969, Karsanbhai Patel, a chemist, founded
Nirma in Gujarat and went on to sell it nationally
by 1985.
• Patel was offering detergent products for poor
consumers, mostly in rural areas.
• In fact, Nirma created a new business system
that included a new product formulation, low-
cost manufacturing process, wide distribution
network, special packaging for daily purchasing,
and value pricing.
• Current market share of Nirma is 12% of the
total detergent market in India.
• HUL, in typical MNC fashion, initially dismissed
Nirma’s strategy. However, as Nirma grew
rapidly, HUL could see its local competitor was
winning in a market it had disregarded.
• HUL decentralized the production, marketing,
and distribution of the product to leverage the
abundant labour pool in rural India, quickly
creating sales channels through the thousands
of small outlets where people at the bottom of
the pyramid shop.
• In 1988, HUL launched Wheel to counter Nirma.
• Current market share of Wheel is 16.9% of the
total detergent in India.
History

29. Nirma Product Range
Super Nirma
Detergent
Nirma
Detergent
Nirma
Detergent Cake
Super Nirma
Detergent Cake

30. Active Wheel
Detergent
Lemon & Jasmine
Active Wheel Bar
Lemon & Orange
Active Wheel Bar
Lemon & Jasmine
Active Wheel
Detergent
Lemon & Orange
Wheel Product Range

31. “Sabki
Pasand
Nirma”
“Super
Nirma Se
Mile
Super
Safedi”
“HaathN
aa
Jalein”
“Nimbu Ki
Shakti Aur
Hazaro
Phoolo Ki
Khusboo”
Ad
Ad Ad
Ad

32. Nirma Wheel
S – Segmentation
Low-End Segment, Rural Households
(Basically all belonging to bottom of the
pyramid)
‘Sabki Pasand Nirma’
T – Targeting
Nirma is spread across a huge market having an
excellent distribution channel.
Low Income and rural families.
P – Positioning
Nirma positioned itself as an affordable
product between the people who could not
afford detergents and for people who were
looking for something more reasonable and
S – Segmentation
Low-end Segment Detergent, people from
lower-middle class and poor class.
‘Mehangi Wali Dhulai Budget Mein Samai’
T – Targeting
Low income and rural people
Customers wanting fragrance
P – Positioning
Positioned as a house-hold chore
Powerful detergent with fragrance.

33. Nirma Wheel
• Cost leadership strategy
• Nirma chemicals was able to challenge the
might of Hindustan lever by pursuing this
strategy by producing products more cheaply
than Surf.
• At that time, it was sold at Rs 3.5 per kg while
HUL’s surf was priced at Rs 15.
• The mission of Nirma was to provide better
quality products at best prices
• Nirma is a very good example of fulfilling the
unmet needs of the customers. Once you fulfill
the unmet needs, you also get the first mover
advantage.
• Differentiation strategy.
• Nirma was already there in the market for many
years so the possibility of breaking the price
barrier of Nirma ruled out and so also the place.
• Now the only thing left was the promotion by
getting a Brand Ambassador / Celebrity Endorser
and that’s what HUL did.
• HUL incorporated artificial fragrance into Wheel,
with photographs of Lemon, Jasmine, Sandal etc.
to make consumers believe that it contains real
ones.
• Research picked up the insight that Nirma was
not kind on hands because of its high soda ash
content.
• "Maine maangi thi safaai, aur tu ne di haathon ki
jalan" commercial, which took the battle straight
to Nirma's turf.

34. Porter’s Generic Strategies
Cost
Leadership
Differentiation
Cost Focus
Differentiation
Focus
Focus
Broad
Target
Narrow
Target
Lower Cost Differentiation
Competitive Advantage
MarketScope

36. TIDE
Launched in 2000 in India as Detergent
Powder.
One of the brands under P&G.
GHARI
Launched in 1987 in India as Low Cost,
Good Quality Detergent Powder.
Brand under RSPL.

37. “Chaunk Gaye?” “Pehle Istemal Karein, Fir
Vishwas Karein”
Ad Ad

38. Tide GHARI
S – Segmentation
Medium Level Income Segment, Soaps &
Detergent.
T – Targeting
Middle class women, washing clothes on their
own. Middle class buyers who cannot afford
premium products but aspire for equally good
products
P – Positioning
Positioned as a very good quality detergent
offering superior whiteness, good odor,
affordable price. An all round detergent
possessing all the desired qualities of a
detergent.
S – Segmentation
Low-end Income Segment (Mass), Soaps &
Detergent.
T – Targeting
Lower middle class households in Tier 3 and
Tier 4 regions. Also targeted people in rural
areas in different geographies.
P – Positioning
Positioned as a good quality product
(compared to low-end products like Nirma and
Wheel) but at a slightly higher price. A product
that doesn’t impair ‘Kismat ki rekha’.

39. Porter’s Generic Strategies
Cost
Leadership
Differentiation
Cost Focus
Differentiation
Focus
Focus
Broad
Target
Narrow
Target
Lower Cost Differentiation
Competitive Advantage
MarketScope

40. This is not the End, my friends.
Let’s have a quick summary on
Porter’s Generic Strategies.

41. Cost
Leadership
Differentiation
Cost Focus
Differentiation
Focus
Focus
Broad
Target
Narrow
Target
Lower Cost Differentiation
Competitive Advantage
MarketScope
Porter’s Generic Strategies (with respect to competition and price segment)

42. Cost
Leadership
Differentiation
Cost Focus
Differentiation
Focus
Focus
Broad
Target
Narrow
Target
Lower Cost Differentiation
Competitive Advantage
MarketScope
Porter’s Generic Strategies (in overall Detergent Industry)

43. Perceptual Map (Above discussed brands)
High Price
Low Price
High Quality
Low Quality

44. References
• http://www.icmrindia.org/free%20resources/casestudies/The%20Nirma.htm
• http://mba.mit.asia/waves-2014/Success-Story-of-Nirma.pdf
• https://www.surfexcel.in/laundry-products/
• Market Research Report on DETERGENT INDUSTRY IN INDIA (By NPCS) [PDF]
• Indian Consumer Laundry Study (By Dupont) [PDF]
• Porter’s Five Forces Model and Porter’s Generic Strategies (multiple sites)
• http://consumeraffairs.nic.in/WriteReadData/userfiles/file/DetergentPowders.pdf

45. The End
Thank You 