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. cosmetics
2. Soaps
3. Detergent
4. Salt
5. Soda ash
6. 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 Particulars
Political Industry is too small for political attention
Regulatory 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 increases
Cant sell or export, barriers to export.

Supplier Mostly small scale.
Technological Technological up gradation is in process, import of
machinery simple
Improving size of production
Able to meet huge demand of customers
New technology brings effectiveness and efficiency
which add quality in product
Social Environment friendly and not to harmful for people
Majority 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
Questi
on
mark
Star
Cash
cow
Dog
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.