HENKO DETERGENTS

1.1 INDUSTRY PROFILE

The detergent market can be classified into premium (Surf, Ariel), mid-price (Rin, Henko, Tide) and popular segments (Nirma, Wheel, Mr. White)

They account for 15%, 40% and 45% of the market respectively, which is only 60 per cent of the total market.

Regional and small unorganized players still account for a significant 40% of the total detergent market.

Per capita consumption of detergent in India (2.7 kg) is lower than any other country

1.2 HENKO INTRODUCTION

Henko is a detergent from Henkel Germany and now henkel India Ltd become a Jyothy Laboratories Ltd.

Henko stain champion launched in 1994.

Is available in Henko stain champion detergent powder, henko stain champion matic and henko stain champion bar.

Launched in ’94 in the South: Direct competition to Surf

Top end premium: Market share ~9%

Focused on stain removal (highest order need for Indian consumer): Pre-treater powerpearls (proprietary technology)

High-on-quality, relatively low-on-price proposition

Earlier campaigns: Positioning Henko as a better option (usage of Surf was more a habit than conviction)

Celebrities; Freebies; Regional association to strike emotional chord

“Iske power pearls kapro mein geheraee tak jaye aur daag ko jar se nikal”

Focus on product performance superior as compared to rivals

Technological aspect: No social/emotional angle as such

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Industry Trends

Detergent market has good penetration – but slow growth Saturation hits urban areas Bar form of detergents are losing out. Premium quality synthetic detergents are

experiencing growth due to drop in unit price. Compact detergents meant for washing machines are getting slow entry. Price competition among major manufacturers getting more intense. South India offer good potential and growth. P&G has chosen an expans strategy by lowering prices. HLL trying to build brand loyalty for Surf by innovative ad campaign.

Industry Structure

World’s third largest detergent market

Total detergent market: Rs 6000 crore

Detergent powder: Rs 3300 crore 23 lakh tonnes/ annum

Other forms:

Detergent bars (43%)Liquid detergentsCompacts

Market Per capita consumption: 3.2 Kg Industry growth rate: 6-8% per annum

Industry Structure National Sales Distribution

• Urban – 60%• Rural – 40%

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Industry Structure

Very high penetration

Growth

o Up gradation from bars to powder

o Increasing per capita consumption

o Increasing use of premium powders

1.3 Marketing mix of Henko

Product It is a premium laundry detergent Removes stains and kills germs It comes with a neem flavor

Place All India Super markets, hyper markets, retail

stores and also available through online

Promotion Print media Television

Price Henko matic stain champion 1kg-

Rs.190 Henko stain champion detergent 1 kg-

Rs.125

Business strategy

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Henko Repositioning

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Major Players

Premium• Surf Excel• Ariel• Henko Stain Champion

Economy/Mid Priced• Tide• Rin Shakti • Henko Mr. White

Popular• Nirma • Wheel

Consumer Behavior

Across all segments: The main attributes that consumers look for in a detergent are:

• Value for money (how effective the detergent is in cleaning clothes vs affordability)

• Ease of use (must dissolve fast) – this was specific to households which do not have washing machines

Apart from the cleansing action, detergents should also be easy on the skin and must have a fragrance: Ariel Spring Clean (roses), Ariel Fresh Clean (mogra)

Main factor influencing consumers’ expectations:• Improved affordability • Ad campaigns

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Within a segment: Very little perceived difference in a particular category and a price point Consumers are more or less indifferent among leading brands as long as prices are

comparable This commoditization nature of detergent business that is forcing players to fall in line

with lower prices superior quality detergents at an affordable price Between two segments:

With price cuts, up gradation With slowdown, down gradation

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Competitors

Brand Salience

• Stain Free

• Disinfectant

• Germ Remover

• Hygienic cloth

• Herbal with neem extracts

• Antibacterial, antifungal

• Irrfan Khan

Brand Performance

• Primary Characteristics:

– With Oxygen to remove Stains

– Secondary Characteristics:

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– Neem Based

– Fragrance

– Germ Remover

• Reliability:

– Other Neem Based Henkel Products Like Margo And Neem Active

Brand Imagery

• Hygienic

• No Harmful Effects

• White Backgrounds

• Tough on stains

• Clean surroundings

Brand Judgment

• Best quality: Germ fighting capability due to neem

• Reliable: Other products like Margo, Neem active and pril focus on natural ingredients

• Care for Environment

• More benefits at comparable prices

Brand Feelings

• Safety - Wellbeing

• Security - Protection

• Confidence

Brand Resonance

• Loyalty

• Sense of Community- Neem Plantation

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• Brand engagement

Positioning

• Target Segment:

Women age group 25 to 50 years.

Middle class income groups, mass segment

• Competitors frame of reference:

HUL with Surf, P & G with Tide and Ariel are the main competitors of Henkel.

▫ Product attributes/benefits:

Surf Excel concentrates more on Stain removing. Tide positions itself as a detergent for whitening of clothes. Ariel’s POD is fragrance.

▫ Brand Promise:

Kills Germs 10 times better

POP & POD- Henko

• Points Of Parity:

▫ Stain Remover

▫ Whitener

• Points Of Difference:

▫ Germ _ Fighter

Consumer Deliverability Criteria For POD:

Relevance: 85 per cent of consumers felt that owing to pollution, there was a need to make clothes germ-free, while 95 per cent were wary of skin infections from clothes that had germs even after a wash.

Distinctiveness: Germ - Fighting

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Believability: adding neem , herbal properties , in the detergent makes the difference of germ fighting believable.

No need of Hot water.

▫ Enhances life of fabric

▫ No Bad Odour

▫ Saves time and electricity

Natural

Waste water not harmful to environment Prevents skin allergies

Brand Values

Brand Mantra: Natural, Superior, Confident

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Brand Marketing Programmes

• Name: Henko

• Symbol

• New design and packaging

▫ Introducing new SKU (30 gms)

• Jingle

“Sabka Hai Ek Hi Naara , Henko Hai Kapdo Ka Sahara”

Promotional campaigns

• Direct marketing – demonstrations in large societies to show effectiveness of germ free property

• Distributing T-shirts, caps with new symbol and company values . On the spot complementary gift for people at demo

• Advertising

▫ TV Media

▫ Print

• Brand Ambassador: Irrfan Khan

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“Safai Ka Nazaria Badlo”

Brand performance measurement

• Clarity

▫ Rate the brands --Surf Excel --Tide -- Henko -- Ariel

on the attributes mentioned below:

--Stain free --Germ Remover --Whiteness -- Cleanliness -- Fragrance

• Relevance

▫ 85 per cent of consumers felt that owing to pollution, there was a need to make clothes germ-free, while 95 per cent were wary of skin infections from clothes that had germs even after a wash. Neem is a known natural disinfectant.

• Distinctiveness

▫ Using Scales used in MDS methodology

• Consistency

▫ Across communication

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Growing and sustaining Brand Equity

• Brand will stand out as a ‘natural’ product

• Organization’s continued focus on environment protection – Go Green Initiative

• CSR activities for customers as well as Industry

Henkel Neem Plantation Programme

• Launch of ‘Henkel Neem Plantation Programme’

• All branches of Henkel will have Neem trees on campus

• HNPP will also have tie-ups with corporates

• 3 rupees from every unit sold will go towards Henkel Neem Plantation programme

Customer Connect

• Customers give back to nature

• Sense of responsibility inculcated

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Growing and sustaining Brand Equity

Brand Hierarchy- HenkelLaundry Care Home Care

Beauty and personal careBody Oral

• Spread of awareness about global impact of deforestation

Recommendations

Being the HENKO the weakest brand among the other washing powder brands, here are some recommendations:

They should promote and advertise their brand more like other brands are doing with brand personality.

There should be proper distribution channel and should follow SCM techniques.

They should decrease the production cost so MRP can be inched down.

They must observe the competitors of washing powder about what strategies do they use.

They can come up with new strategy like online selling or free home delivery of washing powder.

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