THE NIRMA STORY

MARKETING MANAGEMENT- I

GROUP 5
Dudh si safedi Nirma se aaye, Rangin kapda bhi khil khil jaye, Sabki pasand Nirma

Ashwin Babu (11068) Kunal Gorai (11078) Mayank Jindal (11083) Vismaya M N (11120)

NIRMA THE BRAND!

Started in 1969 Mission: Better products, better value, better living

Economically priced and introduced for the low income segment.

In March 2000, turn-over - Rs. 17.17 billion. (increase of 17%)
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MARKET SHARES (TOILET SOAPS) 1999-2000

4% 8% HLL Nirma 65% Godrej Wipro Others

8%

15%

15% share in toilet soaps

MARKET SHARES (DETERGENTS): 1999-2000

Nirma 22%
38% 2% 7% HLL P&G Henkel Spic Others

31%

30% share in detergents

BRAND WARS

Nirma Super washing powder vs. Surf Nirma Bath vs. Lifebuoy Nirma beauty soap vs. Lux

Nima Rose vs. Breeze

Nima Lime vs. Jai Lime
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BCG MATRIX
STARS QUESTION MARKS Nirma premium toilet soaps Nirma Super washing powder (premium)

CASH COWS Nirma detergent (economic)

DOGS Nirma Shikakai Nirma beauty shampoo

Nirma tooth-paste

STRENGTHS

Pricing (Nirma Low price detergent) 400 distributors, over 2 million retail outlets. In southern India Depots. Cost effectiveness. In-house printing and packaging. State-of-the-art raw material production plants. Advertising. Managed geographical diversity. Low cost labour

WEAKNESSES

Advertisements strategies. Image of Cheap Brand. Lack of experience in premium products. Inadequate infrastructure necessary for penetrating urban areas. Cost effective model.

OPPORTUNITIES

Global detergent market. Strengthen sub-premium brands by feature addition and quality improvement. Pure salt market

THREATS

Competition in premium segments.

National and International

1. WILL NIRMAS COST EFFECTIVE BUSINESS MODEL BE SUCCESSFUL IN THE LONG RUN?

NO!! Perceived as a cheap brand. Face intense competition from local brands. As lifestyle improves, the product appeal decreases. Too much emphasis on backward integration as against study of consumer behaviour.
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2. THERE ARE MANY BIG PLAYERS IN THE

DETERGENTS AND PERSONAL CARE MARKET IN INDIA GIVING TOUGH COMPETITION TO NIRMA. HOW

CAN

NIRMA TACKLE IT?

Leader strategies (Detergents) :

Defending market share

Challenger strategies (Personal care market):

Frontal attack advertising, distribution channel

Better brand image (Rs. 10 billion investment)

Flank attack sub-premium segment and managing geographical diversity

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3. BY 1990, NIRMA GAINED SIZABLE FOOTHOLD IN

LOWER END OF DETERGENT AND TOILET SOAP MARKET. WAS IT NECESSARY TO ENTER THE

PREMIUM SEGMENT

YES!! Expansion to retain the middle class that would graduate to upper class. Market growth. Broaden its product portfolio.

Recommendation From single segment concentration to selective specialization.

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Thank You!!
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QUESTIONS??

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