The Nirma Story - Group 5

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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)

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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

65%

15%

8%4%

8%

HLL

Nirma

Godrej

Wipro

Others

15% share in toilet soaps

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MARKET SHARES (DETERGENTS):1999-2000

38%

31%

7%

2%

22% Nirma

HLL

P&G

Henkel Spic

Others

30% share in detergents

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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

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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

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WEAKNESSES

Advertisements strategies. Image of “Cheap Brand”. Lack of experience in premium products. Inadequate infrastructure necessary for

penetrating urban areas. Cost effective model.

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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

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1. WILL NIRMA’S 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!!

14QUESTIONS??