Nirma case study_abhishek


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Nirma case study_abhishek

  1. 1. Nirma Case Study Presented by : Abhishek Sabharwal(08EMP1-01)
  2. 2. Nirma Case Study Presented by : Amanpreet Singh Makkar(06)
  3. 3. "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.
  4. 4. Introduction • Started as a one-product one-man outfit in 1969 by a chemist Karsanbhai Patel. • The new yellow powder detergent was priced at Rs. 3.50 per kg, at a time when HLL's Surf was priced at Rs 15. • The company’s mission to provide, “Better Products, Better Value, Better Living” contributed a great deal to its success.
  5. 5. Products • Consumer Products • Industrial Products
  6. 6. Consumer Products • Detergents – Nirma Washing Powder – Super Nirma Washing Powder – Nirma Popular Washing Powder – Nirma Detergent cake – Super Nirma Detergent cake – Nirma Popular Detergent cake • Soaps – Nirma Lime Fresh – Nirma Rose – Nirma Sandal • Scouring Products – Nirma clean dish wash bar – Nirma bartan bar • Edible Salt – Nirma shudh iodized salt
  7. 7. Industrial Products • LAB ( Linear Alkyl Benzene ) • AOS ( Alfa Olefin Sulphate ) • Sulphuric Acid • Glycerin • Soda Ash • Pure salt • Vacuum Evaporated Iodized Salt • SSP ( Single Super Phosphate ) • Sodium Silicate
  8. 8. Soap Industry World-wide, there are only four or five platforms – floral, beauty, health, freshness – which account for most of the soaps sold. Nirma produced high-fatty-matter soaps with the right scents, and priced them much lower than other brands. • Nirma Bath against Lifebuoy • Nirma Beauty Soap against Lux • Nima Rose against Breeze • Nima Lime against Jai Lime
  9. 9. SWOT Analysis
  10. 10. Strengths • Nirma carved a niche for itself in the lower-end of the detergents and toilet soap market. • The USP of Nirma is its ability to provide the product at low price without compromising with the quality • The brand name ‘NIRMA’ became almost synonymous with low-priced detergents and toilet soaps. • Offer products for both economy segments & premium segments at comparatively lower price as compared to competitors • Nirma did everything to create a low-cost product – A high level of backward integration leading to captive supply sources – In-house manufacturing and packaging design – direct distribution channels – personal and trust-based relationship with distributors – sustained, enduring, and low-key promotion.
  11. 11. Weakness • Conflicting brands Nirma and Nima • Brand image of Nirma- recognized as a low-priced – According to a survey conducted by Samsika Marketing Consultants, Nirma's marketing firm, Nirma was considered to be a cheap brand. Many people were almost ashamed to admit that they were using it. – Not able to penetrate in premium segment products
  12. 12. Oppurtunities • Diversify in other consumer products – Liquid hand soap (with enhance antiseptic ) – Liquid detergent – Nirma Bleaching Powder(An agent that makes things white ) • Export to developing /neighboring countries. • Increase market share in premium segment products. • Expand in vacuum areas. – Urban market for premium segment products – Rural market for economy segment products
  13. 13. Threats • Guerilla attack from local and independent producers. • Broad attack from HUL and P&G • With growth in the size, arise the challenges of organization and control. Nirma needs to focus on these challenges and see how it can retain some of its nimbleness and yet reap the advantages of size, such as the economies of scale.
  14. 14. Strategic action plan • Diversify in other FMCG products initially soap/detergent based and later on in other products like toothpaste, Hair oil etc. • Increase advertising budget • Come up with a new add campaign and try to change its brand image from low priced brand to a high value brand . • work in partnership with FMCG companies in other countries to increase sales.
  15. 15. Thanks