INDUSTRY

PRESENTATION
GROUP 25:
Ananth
Divya Goyle
Nachiketas Waychal
Neha Khullar
Reeti Nageshri
 HARPIC: READY FOR THE CHALLENGE?
 Harpic, the leading toilet cleaning brand of
Reckitt Benckiser India Ltd, was launched in
India in 1984 and has seen tremendous
growth from 2000 in Lavatory industry
 It has a commanding market share of 80%
 But its growth story attracted other low cost
national and international players slowing
down its growth in last couple of years
 To defend its falling market, Harpic Brand
team chalked out strategy to increase its
penetration, consumption while ensuring its
market mix
 It attempts at allocating investments that
are optimized for maximum returns for its
brand growth
 Situation Analysis
Company Context
• RB world’s no.1 in • Toilet cleaning industry • Major players:
household cleaning traditionally
has its brands divided dominated by
into 6 categories unbranded Phenols
• Surface care, fabric (Rs. 500 crore market)
care, dishwash, home and braded cleaner
care, health and food only Rs 50crore
• Operates in 60 • Liquid cleaners is the
dominant category in
countries and sells in
180 countries with the segment with 93
revenues of 9.56 billion per cent share. In-
pounds in 2012 cistern blocks growing
• Harpic is a lavatory at a faster pace.
care product with • Liquid segment is
options such as liquid dominated by Harpic
toilet bowl cleaners, with 70% market share
toilet bowl blocks, • Top 23 metros
cistern blocks, wipes accounts for 52%
and tablets share
• Large number of
customers use low-
grade alternatives
such as acids,
bleaches and phenyls
(37%)
• Market penetration
under 10 but is
growing fast
Competitors Consumer Collaborator
• In India, cleaning is a • CharlesdeGiorgio, a
• HUL – Domex (APDC) daily routine but toilet leading distributor
• Reckitt Benckiser - cleaning is less handles the stores and
Harpic frequent (3-4 times a warehousing for
month) Reckitt Benckiser
• Dabur Balsara -
• Traditionally, Indians • RB has joined The
Sanifresh
associate cleanliness Sustainability
• Cavinkare - Tex
more with visual cues Consortium (TSC), an
• Henkel - Bref rather than hygiene independent global
• Sara Lee - Kiwi Kleen than the westerns who organization that
• S C Johnson - Mr. focused on Germ – creates sustainability
Muscle free. standards for
• Local low cost acids • Brand initially faced consumer products.
and phenyls slow acceptance as • Successful
its substitutes like collaboration
residual detergent between retailers,
water, phenyl, acids, suppliers and
detergents, bleach producers will enable
overpowered the company deploy
• Harpic was expensive, transformational
5 times of acid which changes on
was perceived as a sustainability
strongest cleaning • It has also partnered
agent. with global charity
• A premium product Save the Children to
for the working help protect young
women children from diarrhea
with its heath and
hygiene products.
 SWOT
S TRENGTHS W EAKNESSES
•Strong backing of the company
•Market leader in toilet care category •Tough competition means
•Good brand promotion by advertising limited market share growth
and other media •Fake products with similar
•Good distribution channel that ensures names affects brand Internal
brand presence presence factors
•One of the most popular brand in the
cleansing market

O PPORTUNITIES T HREATS

•Still major market not •Local players offering at low price

tapped •Substitutes such as detergents External
•Should extend in rural available for cleaning factors
market •Increase in low cost private labels
•Bring variety and •New innovative products coming
innovation in products in the market

Positive Negative
COMPETITOR ANALYSIS

Domex (HUL): with 18% market share, was launched as all purpose disinfectant cleaner
To tap the small market and compete against phenyls HUL reduced the price of Domex from Rs.42 to Rs.22 per bottle
As a frontal attack on Harpic, it relaunched as Specialist Toilet Cleaner with parity pricing, angle necked bottle and new
communication.
Sanifresh (Dabur):It uses volume gain strategy with heavy discounting but has very low presence in mass media and
hence low market share
Mr Muscle (SC Johnson & Co.): Launched in 2009, it has heavily relied on advertising on TV
Its positioning is based on surface care – science of tough cleaning so promotes for use in toilet bowl as well outside
surface and toilet floor
PRIMARY RESEARCH
Number of respondents surveyed: 60 Method of surveying: Store visits, telephone calls, online surveys

Gender of respondents Age Group Living with

34
15%
26
33% 30%

20%
62%
8%

32%

Female Male
18-24 25-34 35-49 50+ With family With friends Hostel/PG

Working/Non-working Type of cistern

47
37

23

13

Working Not working Indian Western

 PRIMARY RESEARCH
Awareness of toilet cleaning products Awareness of different Harpic products

3%
9% 5%

28%
21%

63%
5% 2% 13% 51%

Toilet care tablets In-cistern devices Rim blocks Rim liquids Toilet liquids Tablet Rim block Flush matic Other accessories (brush, etc) None

Source of Awareness
4% 2%

23%

71%

TV ad Word of mouth Newspaper ad Other

CONSUMER SPEAK
 IDENTIFYING THE EXISTING SEGMENTS IN THE
MARKET

Seekers Learners Planners

Nurturers Young, unmarried Rural customers who are Institutional buyers who
Married women (working working adults; living still learning about the make purchase decisions
or homemakers) that take alone away from home; importance and means of for the company and
care of the household Adapting to domestic toilet cleaning factory
needs responsibility Price sensitive customers Large-scale systematic
Buy the best for the family Variety seeking behaviour who are still using local buying behaviour, do not
in a budget and are looking for substitutes (if at all) change brand preference
discounts frequently
 Harpic, the leading toilet cleaning brand, was launched in India in
1984 and has seen tremendous growth from 2000 in Lavatory industry
 It has a commanding market share of 80%
 But its growth story attracted other international players slowing down
its growth in last couple of years
 To defend its falling market, Harpic Brand team has been chalking
out strategy to increase its penetration, consumption by existing users
while ensuring its market mix
 It attempts at allocating investments that are optimized for maximum
returns for its brand growth
4 P’s
 Product
 Price
 Promotion (Communication strategy)
 Place (Distribution)
PRODUCT
Harpic is available in India as Liquid cleaner, Rim block
and flushmatic products:

Liquid Cleaners:
 Harpic power opti thick 200 ml
 Harpic Citrus arrow 500 ml / 1 Ltr
 Harpic Power Plus Original 200/500/750ml / 1 Ltr
 Harpic Power Plus Rose 500 / 750 ml
 Harpic Fresh Pine 500 ml / 1 Ltr
 Harpic Fresh Floral Toilet Cleaner 500ml
 Harpic Ultra Power Toilet Cleaner 500ml
 Harpic Plus Bleach 500 ml

Automatic Cleaners:
 Harpic Flushmatic Blue 100g
 Harpic Flushmatic Aquamarine Blue 50g
 Harpic Flushmatic Pine 50/100g
 Harpic Jasmine Toilet Rim Block 26g
 Harpic Pine Toilet Rim Block 26g
PRODUCT CONTD…
1. Harpic has adhered to the core value of providing an effective cleaner. However, it’s also
giving consumers added value attribute of replacing the regular disinfectant odor with a range
of pleasant fragrances.

2. Consumer is free to choose the fragrance of his own choice, while retaining the confidence for
the “Harpic” brand.
3. The launch of Flushmatic products is an innovative jump in the Lav Cleaner product range.

4. This has been developed to target that segment of consumers which looks forward to try and
gradually adapt to new kind of products.
 Points of Parity / Points of Difference
 All Lav cleaner liquid products in India are
packaged in tilted neck shaped bottles.
This has almost become an identity of Lav
cleaners.
 Harpic “Ultra Power”s packaging has
been strategically designed so to make it
comparable with Domex Zero Stain: the
strong looking lav cleaner.
 Harpic is available in different fragrances:
this move was initiated by Harpic itself.
Other competitors are still seen catching
up.
 Harpic offers a wide range of products:
liquid, tablets and cleaning accessories.
This makes Harpic look like a complete
package for toilet cleaning. This remains a
quality unique to Harpic.
PRICE
 Harpic toilet cleaner liquid bottles are available in the price range of Rs. 26 to Rs.
117, depending on the size and variant of cleaner.

 One noticeable characteristic of these products is that the price remains constant
throughout all the fragrances in given variant category.

 The prices for Harpic power cleaner for ALL the fragrances are:
 200 ml Rs. 26
 500 ml Rs. 63
 750 ml Rs. 89
 1 Ltr Rs. 117

 The Toilet Rim Block & Flushmatic products are priced as:
 26 g (Rim Block) Rs. 52
 50g Rs. 43
 100g Rs. 75
PROMOTION
Broad observations from Harpic communication through commercials:
 Harpic has been targeting Housewives in its TV commercials since the very beginning
 “Harpic: smart choice” is the message conveyed through these commercials
 Every advertisement of Harpic shows dirty toilets that become clean after Harpic usage.
 Hussain: the Favourite Pati and Favourite devar award winner from Star Plus serials was the
brand ambassador till August 2013
 Now he is replaced by Vishal Malhotra.
PLACE (DISTRIBUTION)
Harpic (Reckitt & Benckiser) has maintained top notch quality in supply chain by:
 Leading the execution of NPD / EPD (New/Existing product development supporting supply
chains) and the continuous gross margin improvement programs namely Squeeze and X-trim in
Supply
 Leading activities such as harmonization / standardization, benchmarking, sourcing studies in
order to identify and develop further opportunities in South East Asia for Lav Care Category.

Availability:
 Harpic products are available at all kinds of retail
outlets like:
 Super markets
 Grocery stores
 Online retail websites

 It’s supply is so designed that it meets the demand of

all types of locations, ranging from Tier 1 cities, to semi-
urban and rural towns.