Summary of Module 1
INDUSTRY OVERVIEW
Washing powders and detergents are considered to be an important part of personal and home care product lines. The local detergent industry in Pakistan has flourished significantly over time and is still on the path diversification and development. During the periods of 1980s till the end of 90s, detergent bars had the major market share, in most of the market segments. The detergent powders through their extensive marketing campaigns and efficient use of marketing mix have not only penetrated this consumer segment but have also shown significant growth value and have gained volume wise. This product now caters to a very large segment from rural to urban centers.
The home care products industry in Pakistan is divided into two parts i.e. soaps and washing detergents. The total sales of the detergent market are 240,000 tons and still a demand supply gap of 55,000 tons of detergent exists. The local manufacturing industry is producing 175,000 tons of detergent which is 77 % of total product whereas rest of the production is met by imported detergents. Currently there are number of brands that are competing with each other in this market. Talking about washing powders, there are almost eight to ten brands that are competing with each other in the market apart from soaps. Each brand has its unique selling proposition which differentiates it from other brands. These brands are targeting different market segments on the basis of their marketing research and marketing segments. The brands which are competing with each other in this industry are:
Surf Excel, Bonus, Bright, Express Power, Sunlight, Rin, Ariel, (Tide imported)
The marketers feel there is potential opportunity for growth in this industry as the consumption of people for home and personal care products and specifically in detergent industry is increasing rapidly. On the other hand in 2009-2010 budget, tax regulatory bodies removed 25 percent