Detergent expensive washing machine specialized detergent powders. Hand-washing

Detergent
are used in almost all household in India. Indian detergent industry is worth
13000 crores. Currently the market leader is Ghari detergent powder with 17.4%
market capitalization.

A
consumer’s buying behavior is influenced by cultural, social, and personal
factors.

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Cultural
factors

Cultural
is the fundamental determinant of a person’s wants and behavior. A child
growing up in India is exposed to values such as respect and care for
individual, honesty and integrity etc. Ghari detergent appeals to lower class
consumers who do not use washing machine. Since washing clothes using hands is
usually the norm in most parts of country, cheap detergent is preferred over
expensive washing machine specialized detergent powders. Hand-washing
remains the most prevalent mode of linen-wash in India, particularly in rural
parts of the country, with these products accounting for a 74% share of
laundry-care sales. 

 

Social
factors

Social
factors such as reference group, family, social roles and statuses affect our
buying behavior. Reference groups are all the groups that have direct or
indirect influence on a person’s attitudes and behaviors. Since many people in
rural don’t know the difference between standard powder and the concentrated
format and tend to opt for lower priced products. Family affect the buying
behaviour the most, most detergents are directly targeted to women. Ghari has
used low price to target lower economic segment population.

 

Personal
factors

Personal
characteristics that influence a buyer’s decision include age and stage in the
life cycle, occupation and economic circumstances, personality and
self-concept, and lifestyle and values.

Younger
generation with knowledge usually prefer other expensive brands over Ghari. Ghari’s
main market base is rural and semi urban segment with focus on lower economic
strata individuals, it is usually preferred by them. Ghari doesn’t appeal to
sophisticated upper class.

 

 

 

 

Product mix

Product

Ghadi detergent is a mediocre brand. Significant features are
resistance against moth and shrinkage, no toxic Chemicals present and it leaves
a pleasant fragrance in clothes. It is formulated in accordance with the
well-defined parameters of the industry. 
To ensure flawlessness and accurate results it is thoroughly inspected
before dispatching to the customers’ premises.

Variants include:

 Price

 Pricing of Ghari is inspired
by Nirma’s low cost model. Strategy of keeping low price and targeting customers
at the bottom of market. Keeping in mind its target market, i.e.  the lower end of the economy, the company has
as far as possible avoided passing on the burden of rising raw material cost on
to the customers.  Ghari provides profit
margin 9% to its dealers which is substantially lower than the standard 12 to
13% for premium brands and at the same time higher than the 6 to 7% being offered
by the competitors in the same segment. 
Company has been working towards creating a strong dealer base while
keeping its price low. It took a bold Step Up of rising its price by 10%
premium over HUL’s Wheel and Nirma, which are priced rupees 30 per kg. It’s a
brilliant gap that Ghari has found as it’s placed above Mas brands like wheel
and Nirma but much below mass premium products such as Surf excel and Tide.

 

 

 

Place

Before going National which would have spread its resources very
thin, RSPL focused on Uttar Pradesh to begin with, which had a population of 167 million and accounts for over 12% of the countries FMCG
sales. It focused on developing an intense distribution network to reach the
customers effectively, which is evident from the fact that out of 3000 dealers in India 900 are in are in UP and 25 of them are in Kanpur alone.  It has almost 50% of its 21 manufacturing
units in UP

Ghari had spread its distribution network to more states now and
directly reaches rural markets, which is biggest audience. In the past 3-4
years, Ghari added 10 states to its distribution reach. The brand is now
present in 19 States. A regional brand has suddenly gone National, reaching out
to millions of new customers. To complete this push affect, the company added
over 1000 dealers
and now has a network of  3500.  The
next target is to cover the remaining 15 odd regions (states and union
territories) in the next 2 years. Ghari has now 21 units, 15 of which were
added since 2006. With the company now looking to enter new markets, especially
in Southern India, at least four more plants are expected to be set up as early
as possible. In 2006, Citigroup Venture Capital India(CVCI) has approach RSPL to pick up a roughly 14% stake. The deal
didn’t go through the valuation differences and RSPL decided to restructure its
business instead. After restructuring the company has now almost doubled its
distribution Network and production units, all funded through internal accruals.
Around April 2011 onwards,
RSPL started using mobile phones to book sales and track distributor’s
positions and sales for which it adopted a mobile application ‘msales’.  Msales helped the Salesforce to take care of
the sales activity on the go and data captured is pushed to its enterprise
resource planning (ERP) system.  Msales is
GPS enabled so it is possible to track sales on the go.

 

Promotion

2% of the sales on advertising and promotion as against 12 to 14%
spent by its MH CPS CPSDetergent
are used in almost all household in India. Indian detergent industry is worth
13000 crores. Currently the market leader is Ghari detergent powder with 17.4%
market capitalization.

A
consumer’s buying behavior is influenced by cultural, social, and personal
factors.

 

Cultural
factors

Cultural
is the fundamental determinant of a person’s wants and behavior. A child
growing up in India is exposed to values such as respect and care for
individual, honesty and integrity etc. Ghari detergent appeals to lower class
consumers who do not use washing machine. Since washing clothes using hands is
usually the norm in most parts of country, cheap detergent is preferred over
expensive washing machine specialized detergent powders. Hand-washing
remains the most prevalent mode of linen-wash in India, particularly in rural
parts of the country, with these products accounting for a 74% share of
laundry-care sales. 

 

Social
factors

Social
factors such as reference group, family, social roles and statuses affect our
buying behavior. Reference groups are all the groups that have direct or
indirect influence on a person’s attitudes and behaviors. Since many people in
rural don’t know the difference between standard powder and the concentrated
format and tend to opt for lower priced products. Family affect the buying
behaviour the most, most detergents are directly targeted to women. Ghari has
used low price to target lower economic segment population.

 

Personal
factors

Personal
characteristics that influence a buyer’s decision include age and stage in the
life cycle, occupation and economic circumstances, personality and
self-concept, and lifestyle and values.

Younger
generation with knowledge usually prefer other expensive brands over Ghari. Ghari’s
main market base is rural and semi urban segment with focus on lower economic
strata individuals, it is usually preferred by them. Ghari doesn’t appeal to
sophisticated upper class.

 

 

 

 

Product mix

Product

Ghadi detergent is a mediocre brand. Significant features are
resistance against moth and shrinkage, no toxic Chemicals present and it leaves
a pleasant fragrance in clothes. It is formulated in accordance with the
well-defined parameters of the industry. 
To ensure flawlessness and accurate results it is thoroughly inspected
before dispatching to the customers’ premises.

Variants include:

 Price

 Pricing of Ghari is inspired
by Nirma’s low cost model. Strategy of keeping low price and targeting customers
at the bottom of market. Keeping in mind its target market, i.e.  the lower end of the economy, the company has
as far as possible avoided passing on the burden of rising raw material cost on
to the customers.  Ghari provides profit
margin 9% to its dealers which is substantially lower than the standard 12 to
13% for premium brands and at the same time higher than the 6 to 7% being offered
by the competitors in the same segment. 
Company has been working towards creating a strong dealer base while
keeping its price low. It took a bold Step Up of rising its price by 10%
premium over HUL’s Wheel and Nirma, which are priced rupees 30 per kg. It’s a
brilliant gap that Ghari has found as it’s placed above Mas brands like wheel
and Nirma but much below mass premium products such as Surf excel and Tide.

 

 

 

Place

Before going National which would have spread its resources very
thin, RSPL focused on Uttar Pradesh to begin with, which had a population of 167 million and accounts for over 12% of the countries FMCG
sales. It focused on developing an intense distribution network to reach the
customers effectively, which is evident from the fact that out of 3000 dealers in India 900 are in are in UP and 25 of them are in Kanpur alone.  It has almost 50% of its 21 manufacturing
units in UP

Ghari had spread its distribution network to more states now and
directly reaches rural markets, which is biggest audience. In the past 3-4
years, Ghari added 10 states to its distribution reach. The brand is now
present in 19 States. A regional brand has suddenly gone National, reaching out
to millions of new customers. To complete this push affect, the company added
over 1000 dealers
and now has a network of  3500.  The
next target is to cover the remaining 15 odd regions (states and union
territories) in the next 2 years. Ghari has now 21 units, 15 of which were
added since 2006. With the company now looking to enter new markets, especially
in Southern India, at least four more plants are expected to be set up as early
as possible. In 2006, Citigroup Venture Capital India(CVCI) has approach RSPL to pick up a roughly 14% stake. The deal
didn’t go through the valuation differences and RSPL decided to restructure its
business instead. After restructuring the company has now almost doubled its
distribution Network and production units, all funded through internal accruals.
Around April 2011 onwards,
RSPL started using mobile phones to book sales and track distributor’s
positions and sales for which it adopted a mobile application ‘msales’.  Msales helped the Salesforce to take care of
the sales activity on the go and data captured is pushed to its enterprise
resource planning (ERP) system.  Msales is
GPS enabled so it is possible to track sales on the go.

 

Promotion

2% of the sales on advertising and promotion as against 12 to 14%
spent by its MH CPS CPS