【文章內(nèi)容簡介】 margin incentive to distributors Total: 778,000 tons East Nirma\interimrpt 18 Lowend market size in South China [’000 Ton] South In South, we remend Hunan and Hubei are target market for market entry because Libai almost control the whole lowend market in Guangdong Competitive landscape 170 Hunan 190 118 179 Hubei Jiangxi Guangdong Fujian 84 ? Libai almost control the whole lowend market in Guangdong ? Resun as a regional brand holds half of Hunan’s lowend market ? One flower and Quanli has 30% and 20% of lowend segment respectively in Hubei Hunan and Hubei are the target market due to their large market size and weak petitors Total: 745,000 tons Nirma\interimrpt 19 West region can only be Nirma’s potential market in the second stage because of its limited market size and strong petitor Lowend market size [’000 ton] 77 Sichuan 154 69 102 Guangxi Yunnan Shanxi Guizhou 69 ? Qiqiang takes 44% of lowend market with three manufacturing sites (Sichuan, Guizhou and Sanxi) ? PG take over one major local brand (Nanfeng) in chongdu to expand lowend market ? Whitecat has setup a manufacturing site with 80,000 ton capacity in Chongqing ? Low population density and per capita consumption West region can only be Nirma’s potential market in the second stage Total: 537,000 tons West Analysis of opportunity Chongqin 65 Nirma\interimrpt 20 Regional and local brands play the major roles in the Northern market Lowend market size in North 1 and North 2 [’000 ton] Competition [volume share] North 2 28% 22% 3% North 1 30% 37% Tiantian Others 2% 14% 30% Qiqiang Yunquan Mulan Jiali Qiqiang Deer Jiali Jianlong Seagull Others Source: by Henkel (Tiantian) and Unilever (Yunquan) Except Qiqiang four local brands are the major players in North 1 and North 2 North1: Liaoning, Jiling, Heilongjiang 458 210 North2: Shandong, Hebei, Shanxi, Beijing Tianjing 14% North 16% Nirma\interimrpt 21 Shandong and Hebei are suggested as strategic focus in early entry period market size in North 2 subregion [’000 ton] Competition 68 Shandong 181 132 Hebei Shanxi Tianjing Beijing ? In Shandong, Deer and Jiali holds 30% and 25% of the lowend market respectively. But weak financial srength and less sophisticated marketing skill undermine their petitiveness ? In Hebei the detergent market is highly fragmented with Qiqiang winning less than 20% market share, the rest are insignificant In Shandong and Hebei a strong and dominant brand is nonexistent yet Total:458,000 tons North Nirma\interimrpt 22 Consumer acceptance Profile of major product form Trend Product feature Average price [RMB/kg] Market share Major brand Production technology Regular Concen trate Ultra concen trate Spray dry Dry mix Agglomera tion ? Tide ? Whitecat ? Qiqiang ? Ariel ? Whitcat ? OMO ? Gaochao (whitecat) 90% 8% 2% ? Hollow ? Low density ? Foaming ? High water solubility ? Solid ? High density ? Nonfoaming ? Excellent stain removing efficacy ? High fluidity ? Excellent stain removing efficacy ? ? ? Well accepted in rural High price undermines affordability and consumer acceptable New product Spraydry technology dominate the laundry powder industry sector Source: Roland Berger Partner interviews Nirma\interimrpt 23 Rural consumer preference Price and money value are two most important factors influencing rural consumers’ purchasing decision ? Foaming ? Fragrant ? Water solubility ? Big package size (400g, 750g) Product ? Primarily through grocery in village / town ? Market / fair especially weekly market Place ? Effective tool to induce trial during introduction period ? Using daily necessities as prize is well accepted Promotion ? Popular acceptable price in rural market: RMB/kg Price range Source: Roland Berger Partners’ interview Nirma\interimrpt 24 Qiqiang’s low price strategy proves to be successful in the lowend segment Relative price parison in low end segment (7RMB/KG) [Total low end segment =100%] 0102030405060700 1 2 3 4 5 6 7 Price (RMB/kg) Volume share 3% 3% 30% 6% 5% 3% 3% 3% Nirma\interimrpt 25 Rural consumer behavior Importance Key factor Price is the first decision factor for rural consumer to buy detergent power ? Price ? Stain removing Efficacy ? Foaming ? Fragrance ? Water solubility ? Whitening ? Enzymatic +++ ++ ++ + 0 ? Price is the most important factor to affect consumer behavior in rural market ? The consumer also pay considerable attention to the stain removing efficacy of detergent powder ? The rural consumer often evaluate the stain removing ability through the foaming effect of the detergent powder ? Most of the rural consumer also like the fraqrance brought by deterrent powder ? Because in general