THE

STORY
It all started to earn a side income, and at that stage,
I had never imagined this kind of success

-Karsanbhai Patel, CMD, Nirma Ltd.

By,
Koushik p n (17065)
Saurabh singh (17084)
Sumitesh pattnaik (17089)
Vishal v Mammen (17094)
Shobitha s m (17099)
INTRODUCTION

In the early 1970s,Nirma washing powder was introduced in the low-income

market.

That is not our market, we need not be concerned- HLL

Later, Nirma became a 17 billion company within three decades.

In 2000, Nirma had 15% shares in the toilet soap segment and 30% shares in
detergent market.

Companys Mission Statement- Better Product, Better Value, Better Living.

HUMBLE BEGINNING
In 1969, Karsanbhai Patel, a chemist manufactured phosphate free synthetic Detergent
Powder.

The new yellow powder was priced at Rs 3.50 per kg, at a time when HLLs Surf was
priced at Rs 15.

By 1999, Nirma was a major consumer brand-offering a range of detergents, soaps and
personal care products.

Nirmas success in the highly competitive soaps and detergents market was
complemented by its distribution reach and market penetration.
 Nirmas network consisted of about 400 distributors and over 2 million retail outlets across the
country, which enabled Nirma to make its products available to the smallest village.

After establishing itself in India, Nirma expanded to markets abroad in 1999.

Its first foray was into Bangladesh, though a joint venture-Commerce Overseas Limited became
the leader in the detergent market there.

The company also planned to enter other regions like the Middle East, China, Russia, Africa and
other Asian Countries.
HLL - 65%
NIRMA - 15%
GODREJ - 8%
OTHERS - 8%
WIPRO - 4%
NIRMA - 38%

HLL - 31%

OTHERS - 22%

P&G - 7%

HENKEL SPIC - 2%
THE ROAD TO SUCCESS
Dominated the detergent powder market, simply by making the
product available at an affordable price.

In 1990, entered the toilet soaps market with its Nirma Beauty soap.

By 1999, acquired 15% share in toilet soap market. Its performance was
remarkable.

By 2000, leading in detergents market by acquiring 38% of shares where

HLLs share was 31% for the same period.
THE ROAD TO SUCCESS.

HIGHER COSTS - NO
Nirmas success was attributed to its focus on cost effectiveness.

Nirma had rewritten the rules of game, by offering good quality products at an
unbeatable low price.

Company endeavoured to keep improving quality while cutting costs.

Backward integration programme has been taken to reduce the production cost.

As a result, they were able to produce large number of raw materials like N-
Paraffin, soda ash, pure salt and Synthetic Detergents.

Effective Supply Chain Management.

NIRMA PRODUCTS
Detergents Hair Care
Nirma Washing Powder Nirma Shikakai
Nirma Super Washing Powder Nirma Beauty Shampoo
Detergent cake
Nirma Toothpaste
Toilet Soap
Nirma Premium Nirma Namak (Salt)
Nirma Sandal
Nirma Lime Fresh Industrial Products
Nirma Rose Linear AlkylBenzene(LAB)
Nirma Bath Soda Ash
Nirma Beauty Soap
BRAND WARS (NIRMA VS HLL)

Product Positioned Against

Nirma Bath Lifebuoy
Nirma Beauty Soap VS Lux
Nirma Rose Breeze
Nirma Lime Jai Lime
SOMEWHEREWENT WRONG

Nirma relied on its low pricing strategy while introducing toilet soaps &
detergents in the premium segment made consumers to perceive Nirma as a
cheap brand.

This strategy backfired, as Premium Segment market was less price sensitive.

Low expenditure on advertisement (1.5-2% of its turn over), & used relatively
unknown starlets for endorsing their soaps.

Beauty products like beauty soaps required effective ads, but Nirma used
unknown starlets to promote their products.
 SWOT ANALYSIS
STRENGTHS
High value product at the lowest possible price
Cost effective approach in production.
Very good Supply Chain Management and Flat
distribution network.
Geographical diversity of consumer preferences.
OPPORTUNITIES
Export to developing/neighboring countries.
Launch variants in premium segment.
Nirma would have a great future in Chemical industry.
WEAKNESSES
No proper network to penetrate urban areas for
premium products (soaps and shampoos).
Same pricing strategies for both economic and premium
segment.
Nirma didnt had the innovative marketing strategies in
premium soap market and followed the same strategy of
HLL in premium soap market.
THREATS
Noted as cheap brand by premium segment people.
Strong attack by major competitors like HLL, P&G.
Emergence of small but strong regional players.
 Will Nirmas cost effective business model be successful in the
long run ?

Yes, Nirmas cost-effective business model be successful in the long run.

From the past three decades, Nirma believed that the customer doesnt look for one
time frills. Rather, the householder wants a long term solution to his or her needs.

Because of Effective supply chain management that they achieved by centralizing to cut
inventory costs and by implementing flat distribution system, Nirma can perform well in
the long run.

Nirmas consistent focus on cost-consciousness and its superior processes will help Nirma
to perform in the long run.
 There are many big players in the detergents, and personal care
market in India, which are giving tough competition to Nirma. How
can Nirma effectively counter this increase in competition ?

Look after the existing customers-as they are the key to Nirmas success.

Backward Integration- By acquiring small companies in unorganised sector.

Protecting Market Shares by continuous improving, developing new products.

Improving Distribution effectiveness in urban areas.

Partnership with successful brands operating in related areas. Eg washing

machine for washing powder
 By 1990, Nirma gained a sizeable foothold in the lower end of the
detergent and toilet soap market. Was it necessary for Nirma to
enter the premium segment ?

Yes, it is necessary for Nirma to enter the premium segment-to expand its total
market-which was an ambitious approach.

Nirma had to launch products for the premium segment to retain its middle class
customers who would graduate to premium segment.

Nirma would considered to be a cheap brand in the future also if they wouldnt
have entered the premium segment.

Broaden its product portfolio and to lower its dependency on the increasing
competition in the low income segment.
THANK YOU..