CARDIFF METROPOLITAN UNIVERSITY

UNIVERSAL BUSINESS SCHOOL

Name: Abhishek M.A

Course: CMBA12

Student ID: st20150286

Subject : Marketing Strategy for an FMCG Brand

Module Leader: Mr. Sushant Nanda

Student ID:st20150286 Abhishek M.A

Henko (Jyothi Laboratories Ltd.)

Abstract
Nowadays laundry detergents are becoming increasingly popular and is widely used as they
can be loaded in washing machines, be it top load or front load. Detergents impart softness,
antistaticness, resiliency to fabrics, mild to eyes and skins and shows good dispersibilty in
water. As the consumption of laundry detergents are comparatively high in a daily usage, the
sale of laundry detergent is a rather large business. There are many different kinds or brands of
laundry detergent sold, many of them claiming some special qualities as their Unique selling
points. A Laundry detergent composition is a formulated mixture of raw materials that can be
classified into different types based on their properties and function in the final product. The
different classes of raw materials are surfactants, builders, bleaching agents, enzymes, and
minors which remove dirt, stain, and soil from surfaces or textiles gave them pleasant feel and
odour. The physico-chemical properties of surfactants make them suitable for laundry purposes.
Laundry detergent has traditionally been a powdered or granular solid, but the use of liquid
laundry detergents has gradually increased over the years, and these days use of liquid
detergent equals or even exceeds use of solid detergent. (Anon., 2017)

Critical Appraisal of Washing Detergent Industry

The global laundry detergent market value is expected to reach USD 205.2 billion by 2025,
according to a new report by Grand View Research, Inc. Rising penetration of washing
machines in the developing economies is expected to propel the sector growth. The four
vendors which control the laundry detergent industry are Proctor & Gamble, Unilever, Church &
Dwight, and Henkel. The brands produced by the Unilever, Proctor & Gamble, and Henkel
concentrate on the middle and high-class segment of consumer whereas Church & Dwight
targets the low end of the consumer segment. The rising disposable income in the developing
economies is forging new trend in the industry where consumers are inclined to buy brand
based on its quality and company’s reputation. However, this trend is only common for the
mature market of the North America and European region. The consumers from Africa and Asia
Pacific region prefers the product based on its pricing. Key players include Unilever, Henkel AG
& Co. KGaA, Church & Dwight Co., Inc., Proctor & Gamble. Mergers of major players in the
industry is likely to consolidate industry in the predicted timeline. For instance, the key merger
of the laundry detergent industry in 2016 is the acquisition of the Sun Products by the German
consumer goods company Henkel AG & Co. KGaA. (Anon., 2017)

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 percent
of the total market.

2
Student ID:st20150286 Abhishek M.A

 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

Henko, a detergent from Henkel Germany and now Henkel India Ltd is a product under
the brand of Jyothy Laboratories Ltd. Henko stain champion launched in 1994. Products
comprises of Henko Lintelligent, Henko Stain champion detergent powder, Henkel stain
champion matic and henko stain champion bar.

Henko Lintelligent with a Lint Reduction Power of 127% is a result of intensive research
specially designed to not just clean and remove stains, but its unique Nano Fibre Lock
Technology locks fraying fibres and conditions them to keep the colour and sheen intact.
Henko is available in a Matic variant for Top Load and Front Load washing machines as
well as a bucket wash variant called Wonder Wash.

Henko Stain Champion is a superfine powder with Oxygen Power which dissolves tough
stains like mud, ink, oil and chocolate instantly without harming your clothes. For
additional cleaning and washing, Henko Stain Champion cakes and bar soaps were also
introduced, available in 100g, 150g, 250g & 400g different varieties and quantities as per
user requirements.

Henko was launched in 1994 in the Southern region of India, gave a stiff and direct
competition to Surf Excel. It Formed the Top end premium: Market share of 9%. Henko
Focused on stain removal (Most needed feature for Indian consumers). It used “Pre-
treater powerpearls” (a proprietary technology) for a superior and high quality washing
results without harming the clothes. Henko had relatively low-on-price proposition.

Vision

“Develop innovative brands, tap high growth categories, reach untapped markets and explore
untapped segments to meet the day-to-day requirements of every Indian household”. (Anon.,
2013)

Mission

“Provide brands that denote superior quality, to touch and positively impact the daily lives of
consumers. To ensure that our brands, business operations and corporate policies translate the
core philosophy of offering value for the money spent to experience our products. Ensure that
our people, processes and products reflect the ideals of integrity, ethics and professionalism”.
(Anon., 2013)

3
Student ID:st20150286 Abhishek M.A

Critical Evaluation of the present channel structure and the proposed one

The direct channel is the simplest channel. In this case, the producer sells directly to the
consumer.There are also examples of very large corporations who use the direct channel
effectively, especially for B2B transactions. Services may also be sold through direct channels,
and the same principle applies: an individual buys a service directly from the provider who
delivers the service. (Anon., n.d.)

For e.g. JLL entered into Fabric Care services through its new venture 'Jyothy Fabricare
Services Limited' to provide "World class laundry at affordable prices at your doorstep". (Anon.,
2013)

Retailers are companies in the channel that focuses on selling directly to consumers. The retail
channel is different from the direct channel in that the retailer doesn’t produce the product. The

4
Student ID:st20150286 Abhishek M.A

retailer markets and sells the goods on behalf of the producer. For consumers, retailers provide
tremendous contact efficiency by creating one location where many products can be
purchased. Retailers may sell products in a store, online, in a kiosk, or on your doorstep. The
emphasis is not the specific location but on selling directly to the consumer. (Anon., n.d.)

Examples of retailers include Big Bazaar, D Mart, Amazon Online, Hypermakerts,

Supermarkets, Departmental Stores, Local Kirana stores etc.

From a consumer’s perspective, the wholesale channel looks very similar to the retail channel,
but it also involves a wholesaler. A wholesaler is primarily engaged in buying and usually
storing and physically handling goods in large quantities, which are then resold (usually in
smaller quantities) to retailers or to industrial or business users. Wholesale channels also
include manufacturers who operate sales offices to perform wholesale functions, and retailers
who operate warehouses or otherwise engage in wholesale activities. (Anon., n.d.)

For e.g. Indiamart.com

Proposed Channel Structure

Value for
money

Market Backward Marketing and

Creation Integration distribution

5
Student ID:st20150286 Abhishek M.A

Henko forms India’s third largest detergent market. It has a wide presence in TV adverts and
Sponsoring Popular Award Shows like Flowers Indian Film Awards 2016, held in Sharjah, UAE.

Image Source: https://www.facebook.com/events/231346360557863

Total detergent market stands at Rs.6000 crore in which Detergent powder alone forms
Rs.3300 crore and consumption is of nearly 23 lakh tonnes/annum. Other forms:Detergent bars
(43%), Liquid detergents, Compacts.

 Per capita consumption: 3.2 Kg

 Industry growth rate: 6-8% per annum
 National Sales Distribution
• Urban- 60%
• Rural- 40%

6
Student ID:st20150286 Abhishek M.A

Critical Appraisal of the Product Strategy adopted vis a vis the one suggest

7
Student ID:st20150286 Abhishek M.A

Target Segment of Henko comprised of Women from age group of 25 to 50 years. Also
included Middle class income groups forming mass segment out of it.

Competitors frame of reference:

Hindustan Unilever Ltd. with Surf Excel, Procter & Gamble with Tide and Ariel are the main
competitors of Henko.

▫ Product attributes/benefits:

▫ Surf Excel concentrates more on Stain removing. Tide positions itself as a

detergent for whitening of clothes. Ariel’s Proof of Delivery is fragrance.

▫ Brand Promise:

 Kills Germs 10 times better.

Consumer Deliverability Criteria For Proof of Delivery:

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: 100% Germ-Fighting

Believability: Adding neem and herbal extracts 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.

 Free from Chemical Reactors

 Natural

 Waste water not harmful to environment

 Prevents skin allergies

After the Henkel acquisition, Jyothy Laboratories has been successful in creating six power
brands for itself—Ujala, Henko, Maxo, Pril, Exo and Margo. At one shot, a three-brand company
leapt into the big league with six power brands, which will be key in driving revenues and
innovation. (Anon., 2015)

8
Student ID:st20150286 Abhishek M.A

In June last year, Jyothy Laboratories relaunched Henko, which involved doing on-ground tie-
ups and better placement of its products to capture the target markets. The awareness
increased the demand for Henko products. The strategy seems to have worked because Jyothy
Laboratories has been able to clock healthy growth of 18-20% in the soaps and detergents
segment in the past two quarters. (Anon., 2015)

Henkel have an advantage - the master brand enjoyed considerable goodwill in the consumer
products market and the category brands had considerable mindshare. All the Henkel brands
were positioned at the premium end. Jyothy, without tinkering the prices too much, reconfigured
the portfolio. It invested into advertising and communication. While Jyothy used to spend
around 6-7 per cent of its revenue on advertising, Henkel's brand spent was negligible. "We
increased advertising spend slowly and in 2014 we spent around 12.6 per cent (which includes
the Henkel brands). Sales of the Henkel portfolio has seen around 25 per cent y-o-y growth in
the last three years," Kamath adds. Moving away from its earlier strategy, the company decided
to work with a number of agencies. (Anon., 2015)

It introduced smaller Stock Keeping Units for semi-urban and rural markets. Henkel products
started moving to semi-urban and rural areas where JLL had a strong distribution network while
JLL brands started moving to urban areas where Henkel brands had considerable visibility. In
the last one year the company focused on extending some of the brands to keep them fresh. It
has launched Margo facewash, relaunched Henko detergent in the premium category. (Anon.,
2014)

Suggested Product Strategy

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)
• Another Major factor influencing consumers’ expectations is the Improved
affordability of the product and Viral/Hugely popular Advertisement campaigns
through TV,Radio, Internet and Social Media’s- YouTube, Facebook, Instagram
etc. targeted advertisements.

Existing pricing strategy

 Henko matic stain champion Oxygen Powder (3+1kg free)- Rs.382

 Henko stain champion detergent (1kg)- Rs.125
 Henko Matic Front Load Detergent Powder (2kg)- Rs.301
 Henko Matic Top Load Detergent Powder (1kg)- Rs.128
 Henko Stain Champion Cake (250g)- Rs. 25

9
Student ID:st20150286 Abhishek M.A

Henko’s pricing is similar to its competitors premium offerings in the premium detergent segment.
(Anon., 24 April 2015)

Henko has always considered prices as per competition offering. In terms of pricing it has been
comparable to its competitors like Surf Excel, Ariel, Sunlight Nirma etc. Consumers perceive
Henko to be quality product in terms of mid-range priced products. This pricing strategy has
proved beneficial in long term for the brand. (Anon., 24 April 2015)

Existing Promotional Strategy

Henko detergent powder, is one of the brands produced by Jyothy Laboratories, that aims at
providing the best laundry wash at affordable prices. It is superfine powder with added oxygen
power which dissolves tough stains like mud, ink, oil and chocolate instantly without harming

10
Student ID:st20150286 Abhishek M.A

clothes. Jyothy laboratories was founded by entrepreneur MP Ramachandran in 1983. They

have established themselves by producing wide variety of products that caters to essential
homecare products. Henko is one of the brands produced by them, promising to give the best
laundry experience ever. (Anon., 2014)

Faith Factor

Henko discovered a revolutionary solution to all the clothes problems, including, colour loss,
fading and stain removal. The powder is pink in colour and scented, providing a new washing
experience, providing clothes with new look and protecting it from ageing. (Anon., 2014)

Engagement that Enthralls

Henko has a LINT Reduction Power of 127%, due to result of intensive research specially
designed not just to clean and remove stains, but its unique ano Fibre Lock Technology locks
fraying fibres and conditions them to keep the color and sheen intact. (Anon., 2014)

Innovedge

Complying itself with latest technologies that imparts best washing techniques to the clothes, it
has turned out to be one of the most famous brands in the arena of detergent powders. (Anon.,
2014)

Brand Promotion

Having Madhuri Dixt, the ace actress, as their brand ambassador, it has managed to strike a
chord with the audience. Its accessibility across various shops all over the country makes it one
of the most promising brands. Henko Lintelligent mainly Concentrates on compact segments for
washing machines. (Anon., 2014)

Promise Beacon

1. It is available in a Matic variant for Top Load and Front Load washing machines, as well as a
bucket wash variant called Wonder Wash. (Anon., 2014)

2. M R Jyothy is the architect behind the conception of Henko, and is also is Whole time
Director at Jyothy Laboratories. (Anon., 2014)

3. Henko Lintelligent, the premium detergent brand from the house of Jyothy Laboratories Ltd.,
the home-grown FMCG Company, has been awarded ‘Product of the Year 2015’ in the
detergent category. (Anon., 2014)

4. After taking over Henkel India, the premium detergent brand ‘Henko’ that was part of Henkel
portfolio, had to be differentiated in order to make inroads in the highly competitive detergent

11
Student ID:st20150286 Abhishek M.A

category market. In order to create a unique positioning, the R&D at Jyothy Laboratories went
beyond stain removal to offer a product with lesser LINT removal with Nano-Fibre Lock
technology that lead to the launch of Henko Lintelligent in June 2014. (Anon., 2014)

Developed Promotional Strategy

“Sabka Hai Ek Hi Naara , Henko Hai Kapdo Ka Sahara” (Everybody has the same slogan, that
is Henko is the life support of clothes).

“Safayi ka Nazariya badlo” (change your perception on cleaning),

Henko not only cleans but also removes germs.

• 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.

Henkel Neem Plantation Programme

• Launch of “Henkel Neem Plantation Programme (HNPP).

• 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 HNPP.

12
Student ID:st20150286 Abhishek M.A

Bibliography
Anon., 2013. Jyothi Laboratories Ltd.. [Online]
Available at: http://www.jyothylaboratories.com/our-vision.php
[Accessed 14-11-2018 November 2018].

Anon., 2013. Press Release- Jyothi Laboratories Ltd.. [Online]

Available at: http://www.jyothylaboratories.com/press-release.php
[Accessed 14-11-2018 November 2018].

Anon., 2014. "LINTELLIGENT"- Asia's Most Promising Brands. [Online]

Available at: https://mostadmiredasia.com/lintelligent
[Accessed 14-11-2018 November 2018].

Anon., 2014. Jyothi Laboratories: Sparkling Colours. [Online]

Available at: https://www.business-standard.com/article/management/sparkling-colours-
114122800635_1.html
[Accessed 14-11-2018 November 2018].

Anon., 2015. Jyothy Laboratories' turnaround story. [Online]

Available at: https://www.livemint.com/Companies/dhwNsfV7IGSsM5kaRdiT9O/Jyothy-
Laboratories-turnaround-story.html
[Accessed 14-11-2018 November 2018].

Anon., 2017. Laundry Detergent Market Worth $205.2 Billion by 2025 | CAGR 4.9%, California,
United States: s.n.

Anon., 24 April 2015. Jyothy Labs: Evolving Power (Brands) play- Detailed Report. [Online]
Available at: https://www.motilaloswal.com/site/rreports/HTML/635657228770166656/index.htm
[Accessed 14-11-2018 November 2018].

Anon., n.d. Lumen: Principles of Marketing. [Online]

Available at: https://courses.lumenlearning.com/clinton-marketing/chapter/reading-channel-
structures/
[Accessed 14-11-2018 November 2018].

13