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    Nirma Nirma Document Transcript

    • Nirma is a group of companies based in the city of Ahmedabad in western India that manufactures products ranging from cosmetics, soaps, detergents, salt, soda ash, LAB and Injectibles. Karsanbhai Patel, a well known entrepreneur and philanthropist of Gujarat, started Nirma as a one-man operation. Today Nirma has over 15000 employees and a turnover of over Rs. 3550 crores. In 2004, Nirma's detergent approached 800,000 tonnes – one of the largest volumes sold in the world – under a single brand 'NIRM<br />TypePublicFounded1969HeadquartersAhmedabadKey peopleKarsanbhai Patel (CMD)IndustryFMCGProductsNirma detergent, Nima soapsRevenueRs. 3350 crores (2009 standalone)Rs. 4898.71 crores (2009 consolidated)Employees14000Websitewww.nirma.co<br />The nirma success story of how an Indian Entrepreneur took on the big MNCs and rewrote the rules of business :<br />It was in 1969 that Dr. Karsanbhai Patel started Nirma and went on to create a whole new segment in the Indian domestic detergent market.During that time the domestic detergent market only had the premium segment and there were very few companies , mainly the MNCs , which were into this business.<br />Karsanbhai Patel used to make detergent powder in the backyard of his house in Ahmedabad and then carry out door to door selling of his hand made product.He gave a money back guarantee with every pack that was sold.Karsanbhai Patel managed to offer his detergent powder for Rs. 3 per kg when the cheapest detergent at that time was Rs.13 per kg and so he was able to successfully target the middle and lower middle income segment.<br />Sabki Pasand Nirma…<br />Nirma became a huge success and all this was a result of Karsanbhai Patel’s entrepreneurial skills.<br />Karsanbhai Patel had good knowledge of chemicals and he came up with Nirma detergent which was a result of innovative combination of the important ingredients.Indigenous method was used ,and also the detergent was more environment friendly.<br />Consumers now had a quality detergent powder , having an affordable price tag.<br />The process of detergent production was labour intensive and this gave employment to a large number of people.Nirma focused on cost reduction strategies to make a place for itself in the market.Nirma has always been known for offering quality products at afforbable prices and thus creating good value for the consumer’s money.<br />In the 1980s nirma moved ahead of Surf , a detergent by HLL , to caputre a large market share.Later, Nirma successfully entered in the premium segment of soaps and detergents.Nirma went on to become the largest detergent and the second largest soap company in India.Nirma had more than 35% market share in the detergent segment and around 20 % market share in the toilet soap segment.The company got listed on the stock exchanges in the year 1994.<br />Nirma adopted backward integration strategy for the regular supply of raw materials,90 % of which they manufacture themselves.Nirma also gave due importance to modernization ,expansion and upgradation of the production facilities.The company also made sure that it uses the latest technology and infrastructure.<br />As far as Corporate social responsibility (CSR) is concerned, Nirma has made some good efforts by starting Nirma Education & Research Foundation (NERF) in the year 1994 for the purpose of running various educational institutes.Nirma has also set up Nirma labs , which prepares aspiring entrepreneurs to effectively face the different business challenges.Nirma also runs Nirma Memorial Trust ,Nirma Foundation and Chanasma Ruppur Gram Vikas Trust as a part of their effort as a socially responsible corporate citizen.<br />The company that was started in 1969 with just one man who used to deliver his product from one house to the other,today employs around 14 thousand people and has a turnover of more than $ 500 million. In 2004 Nirma’s annual sales were as high as 800000 tonnes.According to Forbes in 2005 Karsanbhai Patel’s net worth was $ 640 million<br />  Till 1969, the 240 x 230 - 10k - jpgebiz16c...Super Nirma 300 x 200 - 25k - jpgconsumergoods...ended March 2000, 250 x 209 - 26k - jpgthehindubusines...nirma-girl 250 x 325 - 16k - jpgsuperbrandsindi...detergents 324 x 350 - 33k - jpgthehindubusines...Nirma 335 x 191 - 4k - gifequitymaster.com“Doodsi safayye 240 x 230 - 17k - jpgthoughtsunparal...Nirma 300 x 200 - 24k - jpgahmedabad...nirma-boy 275 x 360 - 13k - jpgsuperbrandsindi...Nirma 228 x 228 - 8k - aspxsuppliers...Super Nirma 228 x 228 - 8k - aspxsuppliers...powder 475 x 274 - 40k - jpgbwforums.comWhen Sita sold 200 x 192 - 10k - jpgfivewisemen...Nirma 347 x 253 - 26k - jpghpsweb...Soaps and 351 x 453 - 35k - jpgthehindubusines...The face of Surf 240 x 297 - 27k - jpgdesidabba.orgFind similar imagesNirma 200 x 89 - 7k - jpgnirma.co.inSuper 300 x 200 - 27k - jpgconsumergoods<br />Mission Statement<br />It is the mission of NIRMA, in partnership with Nebraska counties, other select public agencies, and the people they serve, to be a leader in providing superior, cost-effective, innovative and comprehensive coverages and risk management services to its members through a member-owned and directed program.<br />Vision Statement<br />To serve county and other related public agencies as the provider of choice for group self-insurance coverages and risk management services.<br />Values and Beliefs<br />NIRMA is dedicated to:<br />Understanding and responding to the changing coverage and service needs of its members; <br />Engaging members to actively reduce risk exposures and enhance health and safety;     <br />Adhering to fiscally sound and prudent business practices to ensure continued financial strength and stable, competitive rates over the long term;     <br />Maintaining a focused, assertive, timely approach to claims management and resolution;     <br />Recognizing and realizing the value of cooperative financial and administrative action.<br />Nirma is a customer-focused company committed to consistently offer better quality products and services that maximise value to the customer. <br />This customer-centric philosophy has been well emphasised at Nirma through:<br />Continuously exploring & developing new products & processes. <br />Laying emphasis on cost effectiveness. <br />Maintaining effective Quality Management System. <br />Complying with safety, environment and social obligations. <br />Imparting training to all involved on a continuous basis. <br />Teamwork and active participation all around. <br />Demonstrating belongingness and exemplary behaviour towards organisation, its goals and objectives. <br />Nirma is a phenomenon and synonymous with Value for Money. The brand transcends the specific dynamic of any particular product category, which is best captured in its above mission statement - a statement of sustained innovation, an unceasing effort to deliver better value to consumers, through better product quality<br />Nirma is a customer-focused company committed to consistently offer better quality products and services that maximise value to the customer. <br />This customer-centric philosophy has been well emphasised at Nirma through:<br />Continuously exploring & developing new products & processes. <br />Laying emphasis on cost effectiveness. <br />Maintaining effective Quality Management System. <br />Complying with safety, environment and social obligations. <br />Imparting training to all involved on a continuous basis. <br />Teamwork and active participation all around. <br />Demonstrating belongingness and exemplary behaviour towards organisation, its goals and objectives. <br />Nirma is a phenomenon and synonymous with Value for Money. The brand transcends the specific dynamic of any particular product category, which is best captured in its above mission statement - a statement of sustained innovation, an unceasing effort to deliver better value to consumers, through better product quality<br />Nirma's vision visualises itself as a vibrant, pro-active and widely admired, ethical corporate citizen. Nirma believes, that exemplary achievements on the business points are not enough in the making of a good corporate citizen. In fulfilment of this role as a responsible part of the society and environment in which one operates, Nirma has undertaken a host of activities in the educatNirma's vision visualises itself as a vibrant, pro-active and widely admired, ethical corporate citizen. Nirma believes, that exemplary achievements on the business points are not enough in the making of a good corporate citizen. In fulfilment of this role as a responsible part of the society and environment in which one operates, Nirma has undertaken a host of activities in the educational and social development areas. <br />Realising the significant role of education - especially technical and managerial in socio-economic development of the nation, Nirma played a vital role by establishing the Nirma Education & Research Foundation (NERF) in 1994. Recently, this Foundation has been awarded University status. This status gives way to shape up and expand into a body providing education in other courses like medicine, nursing, biotechnology, etc. along with the existing courses under a single roof of Nirma University. Today, this state-of-the art academic infrastructure runs various institution bodies such as Institute of Technology, Institute of Management, Institute of Pharmaceutical Sciences and Institute of Diploma Engineering. These all institutions are located in a disciplined, serene and pleasant environment. The campus blends beautifully with the green landscaping, aesthetic elegance of arches and the vibrant pursuit of knowledge by the young aspirants. The environment gives full scope for group activities, which are plenty, as also to individual pursuits for development on preferred tracks. <br />Institute of Management is a one of the premier business school, providing quality management education, and nourishing managerial talent. Within a short span, this institution achieved a position in Top-25 B-schools of India. The institute is having state-of-art infrastructure facilities and eminent faculties are sharing and contributing their knowledge to nurture the Indian industry with best managerial skills. Presently, the institution offers a two-year full time programme in business management and managing family business disciplines. Fellowship programme is doctoral level programme for post-graduate scholars in management for those who want to pursue careers in research, consulting, and academics. The programme consists of domain-specific advance courses for skill formation in research, consulting and teaching. To impart management learning to working executive community, Institute of Management is also offering three-years part-time management programme. Management Development Programmes [MDPs] and Executive Diploma Programs [EDPs] are uniquely designed for working executives, managers and entrepreneurs in the fields of Finance, Marketing and Human Resource Management. The programme has been tailored to suit the needs of working executive, managers and entrepreneurs who are seeking an exposure to modern management concept and practices.<br />Institute of Technology offers degree-engineering courses in Chemical, Instrumentation & Control, Electronics & Communication, Computer Sciences, Civil, Mechanical and Electrical technologies. Again, the well-developed infrastructure, knowledge-based faculties and facilities offered at the institution, gives it a priority choice in student community. The institute also offers Post-graduation, advanced courses in various technology disciplines. Year-around different happenings and seminars keep the environment very lively and provide opportunities to her students to perform brilliantly in their disciplines. Institute is also offering Masters in Computer Application courses. <br />Institute of Diploma Studies is offering four-year diploma programme. This programme covers sandwich pattern of multi point entry (MPE) and credit system (CS). This methodology helps students to comprehend industrial practices when they are in the institution allowing them opportunity to develop skills in far better way than their counterpart of non co-operative type programme. This institute is recognized by the All India Council for Technical Education (AICTE) and State Government of Gujarat.<br />Institute of Pharmaceutical Sciences is responsible for preparing students to enter into a career in pharmacy and function as professionals and responsible citizens in changing health care systems. A dynamic, challenging and comprehensive curriculum, includes a foundation in the biological, biomedical, clinical, pharmaceutical and physical sciences, clear focus on application and use of knowledge in practical settings, and a general education in healthcare systems, ethics, management, professional issues, communication and practical skills.<br />NirmaLabs is another contribution of Nirma with an objective to nurture, promote and facilitate potential entrepreneurs in their pursuit of knowledge based large-scale wealth generation for stakeholders and society. The prospects will undergo the program of grooming and incubation at NirmaLabs, and will then be supported to build the incubated ventures with appropriate support.<br />Nirma has already contributed Rs. 350 million for the development of these institutes, an amount, which is likely to rise further to Rs. 500 million. The infrastructure facilities created here are of international standards and they have already become models for similar institutes. Plans are underway to start Post Graduate & Research Courses in Management and Technology, as well as an IAS training center and a programme in Masters of Computer Applications.<br />Nirma Memorial Trust and Nirma Foundation - Nirma Memorial Trust looks after deprived women in Gujarat. It builds Ashrams and guesthouses for pilgrims and the elderly. The Nirma Foundation, set up in 1979, contributes towards the running of schools, colleges, temples and social institutions, within the state and outside.<br />Chanasma Ruppur Gram Vikas Trust in Mehsana of which Mr. K. K. Patel is the founder trustee and President provides education, maintenance of public health and related facilities in rural areas. The trust has started several institutions in Ruppur, including the Arts & Commerce College, and an ITI training institute and a ladies hostel.<br /> <br />ional and social development areas. <br />Realising the significant role of education - especially technical and managerial in socio-economic development of the nation, Nirma played a vital role by establishing the Nirma Education & Research Foundation (NERF) in 1994. Recently, this Foundation has been awarded University status. This status gives way to shape up and expand into a body providing education in other courses like medicine, nursing, biotechnology, etc. along with the existing courses under a single roof of Nirma University. Today, this state-of-the art academic infrastructure runs various institution bodies such as Institute of Technology, Institute of Management, Institute of Pharmaceutical Sciences and Institute of Diploma Engineering. These all institutions are located in a disciplined, serene and pleasant environment. The campus blends beautifully with the green landscaping, aesthetic elegance of arches and the vibrant pursuit of knowledge by the young aspirants. The environment gives full scope for group activities, which are plenty, as also to individual pursuits for development on preferred tracks. <br />Institute of Management is a one of the premier business school, providing quality management education, and nourishing managerial talent. Within a short span, this institution achieved a position in Top-25 B-schools of India. The institute is having state-of-art infrastructure facilities and eminent faculties are sharing and contributing their knowledge to nurture the Indian industry with best managerial skills. Presently, the institution offers a two-year full time programme in business management and managing family business disciplines. Fellowship programme is doctoral level programme for post-graduate scholars in management for those who want to pursue careers in research, consulting, and academics. The programme consists of domain-specific advance courses for skill formation in research, consulting and teaching. To impart management learning to working executive community, Institute of Management is also offering three-years part-time management programme. Management Development Programmes [MDPs] and Executive Diploma Programs [EDPs] are uniquely designed for working executives, managers and entrepreneurs in the fields of Finance, Marketing and Human Resource Management. The programme has been tailored to suit the needs of working executive, managers and entrepreneurs who are seeking an exposure to modern management concept and practices.<br />Institute of Technology offers degree-engineering courses in Chemical, Instrumentation & Control, Electronics & Communication, Computer Sciences, Civil, Mechanical and Electrical technologies. Again, the well-developed infrastructure, knowledge-based faculties and facilities offered at the institution, gives it a priority choice in student community. The institute also offers Post-graduation, advanced courses in various technology disciplines. Year-around different happenings and seminars keep the environment very lively and provide opportunities to her students to perform brilliantly in their disciplines. Institute is also offering Masters in Computer Application courses. <br />Institute of Diploma Studies is offering four-year diploma programme. This programme covers sandwich pattern of multi point entry (MPE) and credit system (CS). This methodology helps students to comprehend industrial practices when they are in the institution allowing them opportunity to develop skills in far better way than their counterpart of non co-operative type programme. This institute is recognized by the All India Council for Technical Education (AICTE) and State Government of Gujarat.<br />Institute of Pharmaceutical Sciences is responsible for preparing students to enter into a career in pharmacy and function as professionals and responsible citizens in changing health care systems. A dynamic, challenging and comprehensive curriculum, includes a foundation in the biological, biomedical, clinical, pharmaceutical and physical sciences, clear focus on application and use of knowledge in practical settings, and a general education in healthcare systems, ethics, management, professional issues, communication and practical skills.<br />NirmaLabs is another contribution of Nirma with an objective to nurture, promote and facilitate potential entrepreneurs in their pursuit of knowledge based large-scale wealth generation for stakeholders and society. The prospects will undergo the program of grooming and incubation at NirmaLabs, and will then be supported to build the incubated ventures with appropriate support.<br />Nirma has already contributed Rs. 350 million for the development of these institutes, an amount, which is likely to rise further to Rs. 500 million. The infrastructure facilities created here are of international standards and they have already become models for similar institutes. Plans are underway to start Post Graduate & Research Courses in Management and Technology, as well as an IAS training center and a programme in Masters of Computer Applications.<br />Nirma Memorial Trust and Nirma Foundation - Nirma Memorial Trust looks after deprived women in Gujarat. It builds Ashrams and guesthouses for pilgrims and the elderly. The Nirma Foundation, set up in 1979, contributes towards the running of schools, colleges, temples and social institutions, within the state and outside.<br />Chanasma Ruppur Gram Vikas Trust in Mehsana of which Mr. K. K. Patel is the founder trustee and President provides education, maintenance of public health and related facilities in rural areas. The trust has started several institutions in Ruppur, including the Arts & Commerce College, and an ITI training institute and a ladies hostel.<br /> <br />Channel distibution<br />Nirma Limited markets its products through its fully owned subsidiary Nirma Consumer Care Limited (NCCL), which was incepted in 1985. NCCL in turn resells these products in the market under the umbrella brands “NIRMA” and “NIMA” along with extensions.<br />The distribution strength of Nirma is based on mutually rewarding and satisfying relationship. <br />Nirma pioneered the concept of flat distribution network. Nirma Consumer Care Limited operates with two parallel distribution networks. 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. <br />Principal Channel [Nirma Products]:<br />Lowest Cost system in India <br />Speed in distribution <br />Flexibility <br />The NIMA range of products is marketed through a parallel marketing network that comprises of more than 2000 distributors. <br />Parallel Channel [Nima Products]:<br />Wider Reach <br />Speedy Market Intelligence <br />Competitive edge & Better focus <br />Complementing Principal Channel <br />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 Company has been successful in establishing an extremely good urban as well as rural presence through the two distribution channels. The distribution channels have played a significant role in making Nirma a household name. 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 network is well equipped to meet the demands of the loyal consumers of the Company across the country.<br />The robust network ensures the availability of various products at different retail outlets across the nation. 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.<br /> <br />Business Plan<br />Advertisement<br />An important point in the ad was that it did not use the iconic Nirma jingle. This was a first since 1982, when the first Nirma ad was made. <br />Now, Nirma wanted its communication to get back to talking about the dirt tackling properties of the detergent, as well as use the legendary 'Washing powder Nirma' jingle, composed by Vedpal.This task was given to ThoughtShop, the creative agency founded by Vipin Dhyani on a project basis. The brief to ThoughtShop was to create a clutter breaking commercial, but retain the values of Nirma. The brand was firm that it did not want to carry on with the montage film route; it needed a different take on dirt removal. <br />Dhyani, founder and creative director, ThoughtShop tells afaqs! that since he was expected to incorporate the jingle into the creative idea, he wanted to use it effectively. The ad opens on the shot of a vehicle rolling into a puddle. A large amount of slush is about to fall onto a woman who is passing by. But just as the slush is ready to land on the woman, she sternly turns towards the puddle. Pointing her index finger at the slush, she says, " Nirma. Washing powder." The slush pauses, surprised at the woman's words. She continues with the words of the jingle, in a firm tone and without any music, and the slush begins to feel threatened. Finally, she walks away untouched by the slush, which plops back into the puddle, much to the surprise of the onlookers. The film has been shot by Amit Sharma of Chrome Pictures. Without any change to the product itself, the TVC conveys the fact that dirt had better stay away from Nirma. Though Dhyani was skeptical about whether the big bosses at Nirma would like the firmness of tone in the jingle, he was pleasantly surprised when they were glad with the strict stand.The special effects of the puddle were created by Joseph, who is a Singapore based VFX artist. The film was shot in Pushkar, Rajasthan and the puddle was added later. The puddle was first created of a wire frame. However, in order to create the wire mesh, water balloons hanging from a rod were burst with nails and studied, so that the correct mesh could be made. Given that water doesn't have shape or form, it was more difficult to animate water; and the process took about a month.What adlanders say<br />Titus Upputuru, executive creative director, Dentsu Marcom thinks that Nirma has nearly taken a leadership stance by saying that " dirt and Nirma are at polarities" . His overall verdict is that it's a clutter cutting and memorable ad.Vinay Kanchan, an independent strategic consultant, thinks that by personifying dirt, there is a change in the old way of showing muscular hands in a bucket trying to get rid of dirt. Personifying dirt is a method also used by Surf (Daag Acche hain); though the ways in which both detergent brands have done so is different. " I liked the way Nirma has total control of dirt and sort of tames it into doing what it wants the dirt to do," says Kanchan.However, he doubts if this drastic change from the earlier montage films would go down well with Nirma's core target audience. " It's a huge risk that the brand is taking, but probably one that they need to take," he points out.Manan Soni, director, Purnima Advertising agrees, saying that the brand has been around for 40 years; and a degree of fatigue is bound to set in. In order to avoid that, the brand seeks to renew its communication.Purnima Advertising was the first creative and media agency for Nirma, and continues to handle the media duties.Soni says that though all the legs of the communication mix are yet being worked on; the current campaign will heavily be skewed towards theatre and outdoor. © 2010 afaqs! Creative Showcase: Got some great campaign that has been published recently? Upload it on afaqs! for the world to see.Download Case Studies: Economic Times: The Power of Ideas, Vodafone: Happy to Help and more. Nirma Limited markets its products through its fully owned subsidiary Nirma Consumer Care Limited (NCCL), which was incepted in 1985. NCCL in turn resells these products in the market under the umbrella brands “NIRMA” and “NIMA” along with extensions.<br />The distribution strength of Nirma is based on mutually rewarding and satisfying relationship. <br />Nirma pioneered the concept of flat distribution network. Nirma Consumer Care Limited operates with two parallel distribution networks. 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. <br />Principal Channel [Nirma Products]:<br />Lowest Cost system in India <br />Speed in distribution <br />Flexibility <br />The NIMA range of products is marketed through a parallel marketing network that comprises of more than 2000 distributors. <br />Parallel Channel [Nima Products]:<br />Wider Reach <br />Speedy Market Intelligence <br />Competitive edge & Better focus <br />Complementing Principal Channel <br />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 Company has been successful in establishing an extremely good urban as well as rural presence through the two distribution channels. The distribution channels have played a significant role in making Nirma a household name. 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 network is well equipped to meet the demands of the loyal consumers of the Company across the country.<br />The robust network ensures the availability of various products at different retail outlets across the nation. 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.<br /> <br />