“NIRMA and HLL”SOMETHING ABOUT STRONG COMMITMENT...

POOJA TANGADE ROLL NO. – 311618 ‘F’.

INTRODUCTION

The golden journey of “NIRMA” started in 1969. ‘NIRMA’ is a brand in detergent and soap market. Single handed creation of ambitious entrepreneur. KARSAN K. PATEL – CEO and Owner of NIRMA. Principle followed by NIRMA.- “ Develop a good product and there

will be a market for it – was absolute.” Core value – 1) good quality 2) reasonable price 3) ease availability

The way of entry..

But the strong commitment was the one of the factor which gives huge success to NIRMA

This idea at that time cause laughter amongs manager of HUL

He started working on that idea.

In 1969, he decided to set up business of detergent and laundry soap

Karsanbhai was ex Lab assistant

Brief introduction of NIRMA

Located in the city of Ahmadabad in western India. Having product under the name of “NIRMA”-1. cosmetics2. Soaps3. Detergent4. Salt 5. Soda ash6. LAB and Injectable Today NIRMA has over 15000 employees Turnover of over 3550 corers In 2004, NIRMAS detergent approached 800000 tones- largest volumes sold in the world.

NIRMA become very successful company within 3 decades. Company had multinational manufacturing facility and broad product

portfolio under an umbrella brand. Companies MISSION :- “ Better product, better value, better living.”

Quality of NIRMA-

CHARACTORISTICS -

Nirma was a basic detergent with no color, design or sophistication on the pack of the product

Cheaper price (affordable) Market share grew from 0% to 60% from 1979 to 1989 (10 years) Medium quality Distribution Effective use of media.

SWOT Analysis• SRENGTH• WEAKNESS• OPPORTUNITY• TREATS

Strength

Strong brand equity Nirma is a 17 billion umbrella brand offering product at multiple price Long term and strong relationship with customers Strong goodwill of brand Strong and wide distribution channel Have other diversified business speeded in various sector Market leadership Produce range of raw material(industrial chemical)

strength

They are in Industrial product Consumer product Education industry- Nirma institute of management Nirma institute of law Nirma institute of technology

weakness

Less presence in premium segment. High interest burden. Lack global tie-ups. Lacking in export market. Not having powerful R & D.

opportunities

Export to neighboring country Acquisition for strengthening its distribution tie ups They can enter in other categories like- shampoo, toothpaste. Increase market share in premium segment by launching variants. They can enter into following service industries because they have enough

goodwill- Education Hotel industry Health care services Rural financial services

treats

Cut throat competition with MNCs ,who specially come to india particularly in toilet soap industry

Emergence of small but strong regional players High treat from HUL and P&G With growing size and turnover, Nirma should focus on controlling and

management functions also that will be one of the important challenge for company

Economies of scale

Area of improvement

Improvement in advertisement Improvement in R & D Introducing new sachet Strengthening distribution channel Introduction of family jar. Taking help of new Bollywood actors for endorsement of product

ETOP Analysis-

Environmental sector Nature of Impact ParticularsPolitical Industry is too small for political attentionRegulatory Raw material reserved for small, medium and large

scale industry ,heavy restrictions. Because of governments rules it may get easy to other new entry.Competition increasesCant sell or export, barriers to export.

Supplier Mostly small scale.Technological Technological up gradation is in process, import of

machinery simpleImproving size of productionAble to meet huge demand of customersNew technology brings effectiveness and efficiency which add quality in product

Social Environment friendly and not to harmful for peopleMajority rural people prefer this product

BCS MODEL.CATEGORISED PRODUCT into various stages -

BCG MATRIX

• NIRMA detergent cake

• Bartan bar

• Nirma salt

• NIRMA washing powder

• Nirma soaps

• NIRMA clean dish bar

Question

markStar

Cash cowDog

RECCOMENDATION AND SOLUTION

There are various parts and procedures are there where Nirma is lacking behind, and there fore we done various kinds of analysis, or with the various kind of tools of an analysis we came to know that growth and opportunities are there but there are some INTERNAL as well as EXTERNAL factor which gives inverse affects to product development cycle,- Packaging Not strong distribution channel Advertisement and promotional activities Making and adopt new strategies. Active R & D department Effective and correct market research. Market segmentation

RECCOMENDATION-

NIRMA is mainly known as a low priced product, that is the image created in the minds of customer. So therefore when customers income increases they wants to purchase some quality product rather than inferior product, and with understanding this “exception of law of demand” NIRMA should come up with, -

Creating new perception in minds of customer with using effective advertisement. Attractive packages Offering range of product to higher middle class also With premium pricing strategy They have to analyze what rich class people expect from this particular industry

and they have to offer as per requirement.