Harpic 2009 Case Stuy

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					Case Analysis on: Surface Care Supremacy of Harpic & Road Ahead

College Name: Symbiosis Institute of Business Management, Bangalore

Team member 1Name - Arun Rafi

Email id - Phone no - +91 97404 30445 Team member 2Name - Harshvardhan Singh Email id- Phone no - +91 94806 06537


HARPIC 2009 CASE STUDY - The case so far. Harpic presently remains the market leader in the Lav Cleaning Category with a 75.5% market share by value of the 180 crore market segment in India, owing to its successful positioning, communication and continued focus of the category. on Harpic presently remains the market leader in the Lav Cleaning Category with a 75.5% market share by value of the 180 crore market segment in India, owing to its successful category India, creation, positioning, communication and unrelenting focus. Positioned currently as ‘The Powerful Toilet Cleaner”, the toilet specialist caters majorly to the urban market, having a 55% penetration by the surface cleaners category. After three decades cleaners of its launch, Harpic had reached a peak market share of 86% by value, making India the biggest market for Harpic across the globe. However, the increased penetration levels, increasing segment size, higher category profitability allured good deal of profitability competition. FMCG majors like HUL, Dabur & S.C. Johnson floated their respective surface cleaning products. Positioned both as specialists and all purpose cleaners these products along with powerful communication, competitive pricing & pricing promotional activities were able to garner a share of about 25% of the toilet cleaning category. Harpic now faces decreasing market share, stagnant penetration levels and increasingly tough competition from both national brands and private labels an is challenged to maintain its and growth objectives. In this classic market leaders’ dilemma, where the category creator is faced with diminishing profitability, Harpic should reach out to its core brand values to decide the future strategy. Harpic which onc created the commoditized product (toilet once cleaner) into a brand has to show its brand leadership again. The category leader should focus on its points of difference and use them to grow the category and maintain profitability.Thus we have adopted a multi pronged approach to understand the pain points of the industry, category, and the consumer. Based on

Harpic has transformed a commoditized product(in the Indian consumers mind) into a brand.

The most efficient and useful aspect of branding is creating a new category. Narrowing your focus to nothing and starting something new - Al Ries

Success of branding a commodity depends upon convincing the customer that all product offerings are not the same and meaningful differences exist – Kevin Lane Keller

India is central to RBs growth strategy – Chandra Mohan Sethi, Regional director, South Asia and chairman & MD, Reckitt Benckiser India

which are the recommendations for achieiving the desired grwth objectives in both urban and rural markets.

What does Harpic stand for - Understanding Core Brand Values History shows that the first brand into the brain, on the average gets atleast twice as more awareness than the competitor.

Our analysis of the problem at hand brought us back to the basics and the fundamentals of the brand values. Any strategic decision should be in line with the core brand values of Harpic. Thus understanding the brand’s past and current environment would enable us to find out the pain points along which any which strategic thinking could be done. The toilet cleaners’ category initially was fragmented in terms of the functional utility they provided. Cleaners did cleaning, disinfectants killed just germs and there were separate products for fragrance. (Refe Annexure 1.1 for a detailed analysis) (Refer Like Domex and Mr. Muscle in Indian markets, Dettol has toyed around with its 4in1 extension. “The most powerful concept in marketing is owning a word in the prospects mind. Hence, being everything to everyone is not the best strategy” – The 22 immutable laws of Marketing

The crucial ingredient in the success of any brand is its claim to authenticity. Hence, the consumer trusts the category creator if it is pertinent to the category.

Soon, Harpic realized this triple benefit action and became the specialist in the toilet cleaners category. cleaners’ However, over the period the category was cluttered by a host of products around th same positioning and provided similar the functional utility. Although the Top of Mind awareness for a toilet cleaner was still occupied by Harpic, other brands fancied their share of the pie through aggressive communication, aggressive promotional and pricing activities (Refer Annexure 1.2 for a activities. comparative chart) Still, it is important to know the ‘forces’ or driving factors behind the choice made by consumer for these different brands. While Domex gives an All purpose cleaner at a low cost, it purpose drives consumers on its ‘disinfectant’ positioning and more importantly a low pricing. Sanifresh has been a ‘me too’ product for Harpic and has been garnering high share due to strong promotions and high availability. Mr. Muscle, has barely entered the category and claims to be a uscle, multipurpose cleaner.

In this clutter, Harpic has been successfully able to capture the ‘specialist toilet cleaning’ association. Its points of difference still remain focused on its specialist a action. A perception mapping of the category shows the high quality perception of the specialist. (Refer Annexure 1.3 for a perception map) Refer However, gradually this position is being claimed by other brands too competing for the growing category making all these claims and providing the same utility in all aspects. It is believed that as a category gets cluttered by brands with almost similar positioning and functional utility being provided, it leads to frequent brand switching behavior with heavy promotional activities being seen as the only winning edge. The brand equity decreases gradually and the category loses its profitability in the lo run making it difficult even to survive. long This fact, challenges Harpic to look for strategic actions in order to maintain the category and brand profitability. The category drivers are therefore evaluated to narrow down on the required strategic actions.

The total size of the household, health and personal care product market in the country is evaluated at approximately Rs 91,000 crore. The growth rate reported by the sector is of around 15.9%. Chander

Strategic Drivers - What would drive the category now ? Segment Drivers Home care products account 1.2% of the wallet of the Indian re consumer spending. Home care is one of the fastest growing categories and the potential is high given the low penetration levels. (Source: The Knowledge Company, Technopak) Within the category a good share of 47% is spend on detergents share followed by 34% on Home & Toilet Cleaning (HTC).

Mohan Sethi, June 2009

Category Pie Never assume that a customer knows what he or she wantsTheodore Levitt; Create new categories and invest in new product development to arouse the want for a product.

Kitchen Products 19%

Detergents 47% Home & Toilet Cleaners (HTC) 34%

The share of spends (39%) on HTC products is similar across all zones of the country. (Refer Annexure 1.4 for a data chart) Similarly, the pattern is same across all Socio economic classes Socio-economic and town classes in the country. (Refer Annexure 1.5 for a data chart) On an average, the spend is more than 34% on HTC across all town classes. The urban footprint has a penetration of 55%, which still has a huge potential. With more people graduating to the consuming and rich class, the category has the potential to grow grow. Consumer Drivers The consumer attitudes and behavior have been influenced to a large extent since the introduction of the category. The conventional usage of water, phenyl and other substandard products have been sidelined to a large extent but majorly in the been urban market. However, the category still needs to resolve some major pain points in both urban and rural markets.
Urban Market - Pain Points

The category still has not been able to provide complete bathroom (commode + tiles + floors) by a single product. Despite similar claims by new entrants a specialist is still elusive. An ‘I can do all’ product would generally be seen with apprehension as toilet and bathroom cleaning is believed to have different perceptions. Commode cleaning is seen as a tougher

task in terms of stains and germs. Whereas, tiles and floors which are more frequently used and touched are seen as gentle clean with effectiveness. Thus a specialist for bathroom effectiveness. cleaning (tiles + floors + outside commode) is required. The graduating consuming class with increased spending would need a specialist in the long term. Even in urban markets, considerable toilets are outside the house. This fact stops further penetration as either water or phenyl is used in such places or they are not cleaned at all. Thus another specialist product is needed here which could bring increased hygiene awareness with the changed perception of effective germ attacking solution along with regular cleaning. Here usage of phenyl can be sidelined by a frontal attack on the fact that phenyl is effective on stains but not on germ kills. Heavy promotions also plague the category profitability, however in the long term a specialist would be preferred even ed on a premium.
Rural Market - Pain Points

Rural markets still do not see bathroom cleaning as priority expenditure. However, the increasing disposable incomes in R1, R2 and R3 cities provide a good opportunity for market development, provided that the rural consumer conflicts are resolved by a product along with increased hygiene awareness. Although the rural consumer spend has increased in personal rural care and hygiene products (Refer Annexure 1.6 for a data chart), still for toilet cleaning substandard products are used. , One major reason for low rural footprint (1 lakh outlets only) is the fact that 96% toile are outside the homes. toilets Thus a right product is needed to increase the rural footprint along with a right communication and affordable price point.

Strategic Actions - Achieving the growth objectives

In this classic market leaders’ dilemma we adopt a multi multipronged approach aimed towards strengthening the Brand equity, imagery and positioning and at the same time bringing the brand back on its poised growth track. Harpic has been able to acquire a strong category association and high top of mind awareness over the years and become a op leading brand. However, the role of a leading brand is to promote the category and not the brand. The most useful aspect of branding is to create a new category which keeps the growth path unending for the brand. This is similar to what Harpic did in 1980’s by creating the toilet (commode) cleaner category. he It’s time again for the specialist to be a specialist again. This time in the Bathroom Cleaning Segment. Despite existing players positioned as toilet or toilet cum bathroom cleaners, there is still no bathroom cleani specialist. cleaning

Fragrances assuming importance across household care products- Household care in India by Euromonitor

Harpic already has Harpic Powerons , a gel applicant.

Harpic has been cleaning the toilet (both squat & western type) since three decades, however, the areas surrounding the bathroom viz. outside commode, floor, tiles remained unattended and were washed either with phenyl, water or other non-specialist products. specialist Also, the increased consumer spending of the rural areas makes it necessary to focus on the rural footprint. Thus a separate urban and rural market strategy is proposed. Urban Market Strategy 1 HARPIC BATHROOM CHAMPION, a specialist which just washes the bathroom (outside commode, floor, tiles) complementing the regular usage of Harpic for toilet (commode) cleaning is the suggested line extension.
Product Strategy

A specialist in only bathroom cleaning

Orange / Yellow color concentrate gel to differentiate between commode and bathroom cleaning Spray bottle Concentrate Gel which gives foam lather implying cleaning action Apply , Wipe , Wash Clean Gentle Clean + Effective Germ Kill + Prominent Fragrance
Pricing Strategy

Prices at 50 Rs. For 50 Washes for standard bathroom size. The pricing is in tandem with industry standards for Home and toilet cleaning category.
tniop a ot dehcterts yhw si tahT .remotsuc eht ot gniht emas eht naem llits lliw cipraH neve renaelc teliot a snaem llits ti erehw desoporp eht retfa noisnetxe enil

Harpic also has Harpic power tablets that are extremely effective in cleaning stains and marks inside the commode. Positioned as “deep cleaning without scrubbing” in countries like U.K.

Communication Strategy

The communication would be based on its positioning of being a specialist in bathroom cleaning. Spray gel, Wipe spread to form lather and Wash Clean in just 7 mintues ; emphasizing on the ease of use. The communication would resolve the pain point of having a clean toilet (commode) but not a clean bathroom. This is where the HARPIC COMPLETE BATHROOM CLEANING CLEANING CHALLENGE communication would be used. Door-to-door below the line would help in creating the door awareness for a complete bathroom cleaning and not ignoring the surrounding areas of the toilet. (Refer Annexure 1.7 for a print ad for the urban market communication) mmunication) Urban Market Strategy 2 Another line extension proposed is the HARPIC 24 HRS CLEAN TABS. A specialist cleaning tablet for urinals and washbasins only.
Product Strategy

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Targeted at the affluent class, hotels, restaurants and other public places; this specialist product aims to disinfect and clean the urinals and wash basins only. Blue colored balls which dispense blue color each time water is applied. Prominent fragrance produces air freshening effect implying hygienic cleaning.
Communication Strategy

The product is targeted at the small affluent segment, but it strengthens the top of mind awareness of specialist toilet cleaning and positioning of the harpic brand. Rural Market Strategy The Home and toilet cleaning category has not been able to make a rural footprint. This market segmen would drive the segment future growth of the category. The major pain point in the rural areas are the toilets outside homes which are either left unattended or are cleaned by substandard products, especially acid or phenyl. A frontal attack on acid and phenyl which give cleaning action but not germ kill should be used.
Product Strategy

Thus, HARPIC PHENO, a germ + stain cleaner is proposed. Pheno is a thick concentrate with a super strong odor that substitutes the fumes cleaning action by ac or phenyl. Its acid application is similar to phenyl, where it is diluted in water and used over the commode, cement floors, walls of the bathroom. Thick Concentrate Super Strong odor implying cleaning action Diluted in water and used for the entire bathroom

Pricing Strategy

1 Re per Wash is the affordable price point suggested.
Communication Strategy

The positioning is based on the fact that the toilets outside homes are more susceptible to germs, diseases and stains. Thus, the communication of ‘GHAR KE BAHAR KE KADE GANGON KE LIYE’ is proposed (Refer Annexure 1.8 for a proposed. Refer print ad for rural market comm communication)

Brand values,positioning and imagery A market leaders' more important role is to grow the category. Harpic has been the category leader which again has to lead the pack while keeping its core brand values, imagery and positioning as a specialist intact. Thus it should focus at growing the category in the urban as well as rural markets and rowing maintain its strong points of difference as a brand.

Leadership alone is the most effective marketing strategy. A study of 25 different categories in 1923 showed that till date only three of the brands i.e Eveready, Manhattan and Palmolive, have lost their leadership. Yes! In 86 Years!




(figures in percentage)

Category Detergents HTC Kitchen Products

All 47 34 19

Share of Spends on Cleaning Products North South East West 50 47 55 42 31 37 34 35 19 16 11 22
SOURCE: The Knowledge Company , Technopak

(figures in percentage)

Category Detergents HTC Kitchen Products

Share of Spends by Socio-economic classes All SEC A SEC B SEC C 47 46 47 47 34 34 34 35 19 20 19 18
SOURCE: The Knowledge Company , Technopak

(figures in percentage)

Share of Spends by Town Casses All 47 34 19 10 mn+ 46 34 20 3-10 mn 47 36 17 1.5-3 mn 52 33 15 1-1.5 mn 48 33 19 0.5-1 mn 46 35 19 0.2-0.5 mn 51 35 15 0.05-0.2 mn 48 38 13

Category Detergents HTC Kitchen Products

SOURCE: The Knowledge Company , Technopak



Description: A must read for all FMCG entusiasts. Harpic's 2009 strategic recommendations for India. Harshvardhan Singh Chauhan