nirma bpsm

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    History of detergents

    First companies to begin manufacturing detergent in

    India was a local private sector firm, named Swastik and

    HLL.

    Swastik produced a powder called Det while HLL test

    marketed Surf, a blue powder.

    Det, a white powder was successful in eastern India.

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    Facts and History ( Nirma )

    It was launched in 1969 by Karsanbhai Patel

    Named after his daughter Nirupama

    The company focuses on the customer

    Priority of the company is better product, better

    value, and better living.

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    Cont..

    2000 retail outlets and with over 200 large and small

    soap manufacturers

    Nirma was inferior to Surf and other premium powders

    on all characteristic normally measured. Yet sales of

    Nirma were higher.

    Indian mentality affected as people were concerned

    about price.

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    Facts and history ( HLL )

    HLL came into the market in 1960

    The company was launched in 1933 I Mumbai.

    Founded by Harish Manwadi and Nitin Paranje.

    Turnover of 25206 crore.

    Have 6.4 million retail outlets.

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    Problem faced

    Low financial support.

    Staff strength was very low.

    Faced stiff market competition as market was fully

    dominated by HLL .

    8%8%

    15%

    65%

    4%

    MARKET SHARE ONTOILET SOAP(1999-00)

    OTHERS

    GODREJ

    NIRMA

    HLL

    WIPRO

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    Alternative solutions ( by Nirma )

    Sold at half price

    Product availability in different size.

    They adopted backward integration strategy.

    It gave importance to modernization ,up gradation,

    expansion of product facility.

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    Alternative solution ( by HLL )

    Gave importance to product innovation and processinnovation.

    Modified business model to target rural customers.

    Implemented IT enabled system for managing supply

    and distribution.

    Innovative methods like Indirect coverage, operation

    harvest, cinema van operations used.

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    Strengths ( Nirma )

    Ability to provide product at low cost without

    compromising on quality.

    Direct distribution channels

    Offer product to both economy and premium segments.

    The brand name NIRMA ,recall a low cost detergent

    powder.

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    Weakness

    Low cost detergent powder caused many people feel

    ashamed to use Nirma.

    Conflict of NIRMA and NIMA.

    Sustainibility in premium segment.

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    Opportunities

    Diversify to other consumer product like (liquid hand

    wash, bleaching powder).

    Export to Foreign countries.

    Increasing Indian population.

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    Threats

    From international market.

    NIRMA continuous focus on mass production ,made aproblem to them .

    Broad attack from HUL and P&G.

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    5 forces model

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    BCG Matrix

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    Recommendations

    Nirma should focus on premium segment.

    Concentrate on International Market.

    Force more sales in rural market.