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

Worlds 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 detergents
Compacts

Market
Per capita consumption: 3.2 Kg
Industry growth rate: 6-8% per annum
Industry Structure
National Sales Distribution
Urban 60%
Rural 40%

Industry Structure
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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 1kgRs.190
Henko stain champion detergent 1 kgRs.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

Within a segment:

Very little perceived difference in a particular category and a price point

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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

Competitors
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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:

Neem Based
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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

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

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 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

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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

Safai Ka Nazaria Badlo

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Brand performance measurement

Clarity

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

-- Ariel

on the attributes mentioned below:

--Stain free

-- Cleanliness

-- Fragrance

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

--Whiteness

Relevance

--Germ Remover

Using Scales used in MDS methodology

Consistency

Across communication

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Oral

Growing and sustaining Brand Equity

Brand will stand out as a natural product

Organizations 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

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Sense of responsibility inculcated

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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