Ghari Detergent

Group : BESPECTACLED


Classification Leading Players
Premium Ariel, Surf Excel
Mid-Range Rin, Henko, Tide
Popular Ghari, Nirma, Wheel, Mr. White
Brand Story

Ghari detergent brand dates back to 1987 and is a product of Rohit Surfactants Pvt.
Limited (RSPL), a Kanpur based conglomerate.
Since starting, the brand has fought off the competition from players like Nirma and
Wheel (HUL offering). It became the largest player in India detergent market by gaining
market share of 17.4% and overtook Hindustan Unilever Limited (HUL) brand Wheel.
RSPL has positioned Ghari detergent brand as a low-priced brand for lower middle class
families. It targets the household women who are seeking cleaning at affordable pricing.
Tagline: Pahle istemal karein fir vishwaas karein (Use it and then believe it)
This tagline has been made hugely popular and people immediately connect it with the
brand Ghari Detergent. It has helped Ghari in not only communicating its credibility as a
product but also achieving high brand recall value.

Marketing and Branding Strategy

Following Nirmas success story
Ghari used Nirmas bottom of the pyramid approach to cater to a large set of customers. It was able to
achieve market share with the detergent powders which was from market expansion. Through low cost
pricing, it switched users from loose-pack detergents to branded ones.
Geographical Concentration
Ghari focussed on Northern India and also setup their production plants in Uttar Pradesh (U.P.). UP, with
population of over 167 million (highest amongst states), accounted for over 12% of the countrys FMCG
sales. The nearby markets of Bihar, Madhya Pradesh and Punjab along with UP comprised one third of the
total consumer products market in India. Ghari was successful in penetrating and capturing these markets
where it currently has over 3500 dealers.
Lower Profit Margins
Usually in Indian Detergent industry the manufacturers keep profit margins of 12-13% while RSPL curtailed
its margins to just 9%. This sacrificing of margins for market share helped Ghari in gaining customer base
rapidly among price-sensitive mass market.
Word-of mouth promotion by Dealers
Incentive to dealers: Ghari provided a profit margin of 9% to dealers compared to its competitors which
shared just 6-7% with their dealers. This incentive mechanism coupled with a huge dealer base helped Ghari
in pushing sales while maintaining low prices.
Branding and Promotion
Ghari has the distinction of not using any celebrity to endorse their products while other
companies have used celebrities like Salman Khan (Wheel), Kajol (Rin) to promote their
products.
Marketing and promotional expenses just 2% of its sales.
Some of the promotional activities undertaken by Ghari include:
Ghari Detergent Express
The Ghari detergent has taken their brand to the trains by starting putting the
advertisements inside the bogies. Consider trains to be a good medium to create brand
awareness by connecting to the rural audience and have selected the trains that run
through 3-4 states.
Roadside Shows and Exhibitions
The company also used platforms like magic shows and roadside exhibitions to reach out
to its customers in smaller towns and cities. The success of these campaigns gave the
brand good visibility in cities such as Alwar, Indore, Jaipur, Kota, etc.

Future Plan
Struggling with low-margin pressure in the popular segment, RSPL has recently
launched a mid-premium brand called Uni Wash
Through this product they plan to compete with Tide (P&G) and Rin, which are
the current dominant players in this segment. This step will help in the longer run
as the spending power of rural consumers is increasing, making them look for
various options. However, the increasing penetration of washing machines in
rural areas is a threat to Ghari as it is chiefly used for just bucket-wash.

The company is also looking forward to take its Ghari brand to South India and
advertise in the trains bound to Trivandrum. However, they will need to modify
their logo as it is currently available only in Hindi. Also, they may need to move
some of their production facilities to South to reduce logistic expenses and
subsequently challenge local southern brands.