University of PuneMarketing Management

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Paola Gori E011

Introduction

• Nirma is a group of companies based in Ahmedabad that manufactures products ranging from cosmetics, soaps, detergents, salt, soda ash, LAB and Injectibles;

• Starting as a one-man operation in 1969, today, it has about 14,000 employee-base and annual turnover is above Rs. 25,00 crores;

• It was really an innovative, quality product – with indigenous process, packaging and low-profiled marketing, which changed the habit of Indian housewives’ for washing their clothes, rewriting the marketing rules;

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Introduction• 1980: the brand surged well ahead its nearest rival –

Surf, which was well-established detergent product by Hindustan Lever;

• 1990 : Looking at the FMCG synergies, Nirma stepped into toilet soaps and achieved a volume of 100,000 per annum. This makes Nirma the largest detergent and the second largest toilet soap brand in India with market share of 38% and 20% respectively;

• 2004: Nirma’s annual sales touch 800,000 tones, making it one ofthe largest volume sales with a single brand name in the world.

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Products

BATHING SOAPS•Nirma beauty soap;•Nirma bath soap;•Nirma lime fresh soap;•Nima rose;•Nima sandal.

DETERGENT POWDER•Super Nirma detergent powder;•Nirma washing powder;•Nirma popular detergent powder.

DETERGENT CAKE:•Super Nirma detergent cake;•Nirma detergent cake;•Nirma popular detergent cake;•Nirma barten bar;•Nirma clean Dish Wash bar.

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ProductsINDUSTRIAL PRODUCTS

• LAB ( Linear Alkyl Benzene );• AOS ( Alfa Olefin Sulfonate );• Sulfuric Acid;• Glycerin;• Soda Ash;• Pure salt;• Vacuum Evaporated Iodized salt;• SSP ( Single Super Phosphate );• Sodium Silicate.

OTHER PRODUCTS • Nirma Shudh iodized free flow salt.

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4 P’s of Nirma

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• Detergent and toilet soaps;• Premium and standard quality;• Blue detergent cake and yellow detergent powder;• 30 kinds of products with different fragrances;• Good valuable products.

Product

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4 P’s of Nirma

Different price level for each product (for Nirma as well as for Nima).

Price

4 P’s of Nirma

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• Outdoor publicity, especially in wall paintings and T.V. Advertising;

• It was the first advertising company which give their advertise on T.V. screen;

• “Dudh si safedi Nirma se aye, Rangin kapade bhi khil khil jaye” this jingle is used since last 38 years at same radio spot has been used consistently since last 25 years.

Promotion

4 P’s of Nirma

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Nirma sell its soaps and detergent in all over India. Its depot branches offices are in Kalatalav, Mandaly, Moraiya, dhank, Savli, Upleta, Viramgam etc.

Place

• All NIRMA and NIMA range of products have a retail reach of over two million retail outlets and more than 40 million loyal consumers spread all over the country;

• The efficient network has made Nirma Washing Powder and Nirma Detergent Cake, the brands with highest penetration in the respective product categories in the market;

• The Distribution channel is geared up to enhance trade relations, build up the retailer base by providing various benefits and incentives, organize and implement different activities to generate sales and manage numerous other programmes, schemes and activities concentrated towards business development.

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Distribution

Distribution• Nirma Limited markets its products through its fully owned subsidiary

Nirma Consumer Care Limited (NCCL) since 1985;• NCCL in turn resells these products in the market under the umbrella

brands “NIRMA” and “NIMA” along with extensions;• The NIRMA brand is marketed through the first network, which consists of

about 450 exclusive distributors. It is one of the lowest cost FMCG distribution channels of the country.

• The NIMA range of products is marketed through a parallel marketing network that comprises of more than 2000 distributors.

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Principal Channel [Nirma Products]:• Lowest Cost system in India;• Speed in distribution;• Flexibility.

Parallel Channel [Nima Products]:• Wider Reach;• Speedy Market Intelligence;• Competitive edge & Better focus;• Complementing Principal Channel.

Segmentation

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Demographic segmentation

Psychographic segmentation

1. Variables: age, family size, family life cycle, gender, income, occupation, education religion, race, generation, nationality and social class.

2. Income: determines the ability of consumer to participate in the market exchange;

3. Social class: it has a strong influence on preference in clothing, therefore to maintain it detergent will also be a preference.

1. Variables: psychological, life style or values;2. People within the same demographic group can

exhibit very different psychographics profile;3. Religion: it has significantly influence on values

and lifestyles;

4 A’s of Rural Marketing Mix

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Affordability

Awareness

Availability

Acceptability

Designing products which match the needs of rural consumer and within his

buying capacity(E.g. Nirma detergent powder, Chik shampoo, Chinni pickle)

To ensure that the product reaches the

retailers shelf

Rural specific promotion media and methods

The product should serve its purpose and offer

solutions to their problems

Plant locations

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Soda Ash:• Investment of Rs. 1,140 crores;•Energy efficient technology from AKZO, Netherlands• Only Soda Ash plant in the world with full DCS controls;• ICMA award for Best Total Water Management Practices in Chemical Industry CategoryLinear Alkyl Benzene :• Investment of Rs. 630 crores;• Only second plant in the world with Eco-friendly Non HF technology from UOP, USA;

PackagingFull range of Packaging facilities -13,500 TPA of packaging material; - 7,200 TPA of Poly Ethylene film manufacturing; - 6,000 TPA Paper Wrapper printing; - 6,000 TPA Laminated Wrappers & Pouch manufacturing; - 3,600 TPA of Stiffner Boards Poly Coating and Slitting; - 14,000 TPA Craft Paper manufacturing; - 12,000 TPA Corrugated Box manufacturing.

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Plant locations

•Soaps:•Investment of Rs. 200 Crores•30,00,000 Soap pieces sold per day•Annual sales of Rs. 500 crore•20% market share•Second largest soap manufacturer in India•Four lines of 500 soaps per minute

SWOT Analysis

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Strengths:• Strong brand equity;• Produce a range of industrial chemical products;• Market leadership;• Wide distribution network.

Threats:•MNC’s coming into Toilet and Soap industry;• Emergence of small but strong regional players (Cavin Care);• The rural market is getting empowered;• Heavy onslaught of competition in the core categories from players like HUL, ITC;• Counterfeit products;• High inflation.

Opportunities:•Exports;• Acquisition for strengthening its distribution tie ups;•Entry into other categories like shampoos, toothpastes and fabric whiteners.

Weaknesses:•High interest burden;• Less presence in premium segment;• Lack global tie ups and thus lacking in export market.

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Thank you