A Project on Detergent

7/30/2019 A Project on Detergent

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Project report on

satisfaction survey of nirma (ltd)


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CATE CERTIFI

This is to certify that ANKITA GHOSH student of second

semester Master of Business administration (MBA) in the

year 2008 -,

2010 has completed the project report

work entitled NIRMA based on syllabus and has

submitted a satisfactory account of his work in this

report.

Lecturer

MISS. RUCHI TIWARI

MDITM , INDORE


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ACKNOWLEDGEMENT

The research on SatisfactionSurvey of Nirma Ltd. has been given to me as part of the

A project on detergent & satisfaction Survey of Nirma

curriculum in the completion of 2-Years Master of business

Administration.

I have tried my best to present this information as clearly as

possible using basic terms that I hope will be comprehended by

the widest spectrum of researchers, analysts and students for

further studies.

I have completed this project under the able guidance and

supervision of Miss Ruchi Tiwari and my project guide. I will be

failed in my duty if I do not acknowledge the esteemed scholarly

guidance, assistance and knowledge I have received from them

towards fruitful and timely completion of this work.


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Mere acknowledgement may not redeem the debt I owe to my

parents for their direct/indirect support during the entire

course of this project.

We also thanks NIRMA DISTIBUTER &

DELERS, INDORE who believed in us and by providing ALL valuable

information and data that helped us in understanding the problem areas of

their organization and hence developing the application as per their

requirements.

I also thankful to my friend Arvind Yadav who helped me a lot in

the completion of this project.

FROMANKITA

GHOSH


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PREFACE

If we can compare marketing to a long train with a multiple

compartment then every bogies represent different aspect of

Mathura Devi inst. Of Tech. and

Mgmt. , indore Page 3


marketing. Marketing strategy formulation depends upon the

every aspect of related terms and marketing research plays vital

roles to connect each compartment to form a cohesive functional

unit.

The Dtergent industry is at the center of Indias new global

dynamic. It plays major roles in retaining industry growth over

16.0 % per annum.

The motivation behind the project was to gain clear understanding

about marketing research. Through this project I have tried to

understand the complexities involved in gathering of data for

drawing inferences .The final objective is to produce a result that

is accurate, useful, and free from bias and helps in the successful

completion of my Master of business Administration course. The

project has been presented in a simple format


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INDEX

1. Executive Summary

2. Introduction to the detergent Industry




3. History of Nirma

4. Objective & hypothisis

5.Research Methodology

6.Questionnaire Analysis

7. Conclusion & Suggestions

8. Bibliography

9.Questionnaire


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Chepter 1

HISTORY OF DETERGENT

PAST RECORDS ABOUT NIRMA Nirma is the Rs.17 billion Detergents, Soaps andPersonal Care Products Brand, a market leader in the Indian detergent market and

second largest in bathing soaps... the brand NIRMA being one of the world's biggest

in it's segment... a result of it's mission to provide 'Better Products, Better Value,

Better Living'. The man who altered the clothes-washing habits of the Karsanbhai

Patel the chairman of the Ahmedabad-based Nirma Ltd. This chemist who

manufactured detergents at home in Ahmedabad in 1969 has certainly come a long

way. He worked from his backyard which developed into a soap factory, cycled to


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retail outlets and hawked his brand at one-fourth of the price of similar products then

available. At Rs 6, Nirma, named after his daughter, was the cheapest detergent vying

for attention on shop shelves. By the late 1980s, Nirma had become one of the world's

largest-selling detergent powders. That he rewrote history and gave Hindustan Lever,

the Indian subsidiary of the Anglo-Dutch foods and toiletries conglomerate Unilever,

a huge headache is well-chronicled. Today he is proud owner of an Rs 2,500-crore

Ahmedabad-based soaps and detergents major It has been Patel's dream to make

Nirma a synonym for quality. "Nirma is not merely a brand or a product, it is a

dynamic phenomenon, a revolution, a philosophy," he once said. Nirma sells over

800,000 tones of detergent products every year and commands a 35% share of the

Indian detergent market, making it one of the worlds biggest detergent brands.

Towards this end, he tried his hand at many brand extensions. From toothpaste to salt

and matchsticks, they all nestled under the Nirma umbrella. Incorporated as a private

limited company, Nirma was converted into a deemed public company and then to a

public limited one in Nov.'93. Nirma is an over Rs. 17 billion brand with a leadership

presence in Detergents, Soaps and Personal Care Products, offering employment to

over 15,000 people. In fiscal 1997, the Nirma group restructured operations and

merged four companies Nilinta Chemicals, Nirma Detergents, Nirma Soaps and

Detergents, and Shiva Soaps and Detergents with its flagship Nirma Ltd. Products

are marketed through a 100-per cent subsidiary, Nirma Consumer Care.

3. Nirma has undertaken backward integration into manufacture of Industrial Productslike Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty

Acid, Glycerine and Sulphuric Acid. Today, Nirma sells over 800000 tones of

detergent products annually, giving it a 35% share of the Indian market, which are the

worlds second largest fabric wash products markets. This makes Nirma India's


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largest detergent marketer and one of the world's biggest detergent brands. The

Company has acquired Kisan Industries Limited situated at Village Moraiya, Dist.

Ahmedabad as a going concern, which was engaged in the business of manufacture of

detergents, Single Super Phosphate, fertilizer and printing and packaging. The second

stream of the 420000 tpa Soda Ash plant at village Kalatalav, Bhavnagar was

commissioned in September 2000. The Company also set up a pure water plant to

manufacture 2.80 lacs TPA Vacuum-salt in October 2000.Debottlenecking process

which was made during 2001-02 by the company resulted in expansion of installed

capacity of Soda Ash at Village Kalatalav, from 420000 TPA to 650000 TPA. The

total cost of the project is approximately Rs.110 crores. This project is expected to be

completed in September, 2002. The company issued Secured NCD aggregating

Rs.360 crores in order to augment its working capital and also to bring-in cost

effiency in funding cost In detergents market Nirma and Hindustan Lever are close

competitors with 38% market share each. Nirma leads the popular segment, while

HLL leads the premium detergent powder segment. P&G and Henkel Spic are the

other key competitors in the detergent market. In toilet soaps, HLL has a dominating

63% market share. Nirma has also garnered a significant 22% market share in a short

time. Other major players in the segment are Godrej Soaps and P&G. DIRECTOR OF

NIRMA : Mr. RAJENDRA D. SHAH


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THERE'S an PREFASE

RURAL INDIA

interesting way of putting rural India into perspective. If

India's population, as per the 1998 estimates of the United Nations

Population Division, is 982,223,000, then rural India, taken as 73.3% of




India, is 719,969,459. Divide that by the estimated total world population of

5.9 billion, and rural India becomes 12.2% of world population. Forget all of

us sitting in the cities (4.4% more) -- 12.2% of the world lives in rural India.

Which, given our effective lack of knowledge makes it a bit like one of the

world's last great undiscovered countries.

Rural inhabitants aren't a different species, but consumers as quirky


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and demanding of marketers as any of their urban cousins. And just as

eager to consume -- maybe even more so, given their access to messages

of consumption via TV, but lacking the easy access that makes urban

consumers blas. For marketers the potential is huge -- a country waiting

eagerly for their products, providing they can make the effort to export

inwards, and learn to play the games by rural rules. And if they don't, the

chances are that they will be left behind. Even with the minimal effort put in

by companies so far, rural India now accounts for majority, or near majority,

consumption in many categories. -- Rural India is clearly not such an area

of darkness anymore, and as a further incentive to keep the lights on,

remember that farmers get electricity free!

One of the most popular and widely accepted Marketing Myth is that

the rural consumers will only buy really cheap mass market brands. But

the stark reality is that though brands like Nirma lead, but penetration of

premium products has also been observed even to the lowest SEC. The

percentages may be very small, but given the large universe, the actual

figures may be significant

Thus when we are aware of the fact that brands like Nirma rule the

rural market, it would be interesting to study and analyse their basic

marketing inputs -----the 4Ps


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NIRMA

About the Company

Nirma is the Rs.17 billion Detergents, Soaps and Personal Care Products

Brand, a market leader in the Indian detergent market and

second largest in bathing soaps... the brand NIRMA being one of the

world's biggest in it's segment... a result of it's mission to provide 'Better

Products, Better Value, Better Living'.

The man who altered the clothes-washing habits of the Karsanbhai

Patel

the chairman of the Ahmedabad-based Nirma Ltd. This chemist who

manufactured detergents at home in Ahmedabad in 1969 has certainly

come a long way. He worked from his backyard which developed into a

soap factory, cycled to retail outlets and hawked his brand at one-fourth of

the price of similar products then available. At Rs 6, Nirma, named after his


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daughter, was the cheapest detergent vying for attention on shop shelves.

By the late 1980s, Nirma had become one of the world's largest-selling

detergent powders. That he rewrote history and gave Hindustan Lever, the

Indian subsidiary of the Anglo-Dutch foods and toiletries conglomerate

Unilever, a huge headache is well-chronicled. Today he is proud owner of

an Rs 2,500-crore Ahmedabad-based soaps and detergents major

It has been Patel's dream to make Nirma a synonym for quality.

"Nirma is not merely a brand or a product, it is a dynamic phenomenon, a

revolution, a philosophy," he once said. Nirma sells over 800,000 tones of

detergent products every year and commands a 35% share of the Indian

detergent market, making it one of the worlds biggest detergent brands.

Towards this end, he tried his hand at many brand extensions. From

toothpaste to salt and matchsticks, they all nestled under the Nirma

umbrella.

Incorporated as a private limited company, Nirma was converted into a

deemed public company and then to a public limited one in Nov.'93. Nirma

is an over Rs. 17 billion brand with a leadership presence in Detergents,

Soaps and Personal Care Products, offering employment to over 15,000

people. In fiscal 1997, the Nirma group restructured operations and merged

four companiesNilinta Chemicals, Nirma Detergents, Nirma Soaps and

Detergents, and Shiva Soaps and Detergentswith its flagship Nirma Ltd.

Products are marketed through a 100-per cent subsidiary, Nirma Consumer

Care.

Nirma has undertaken backward integration into manufacture of Industrial

Products like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin


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Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric Acid.

Today, Nirmasells over 800000 tones of detergent products annually,

giving it a 35% share of the Indian market, which are the worlds second

largest fabric wash products markets. This makes Nirma India's largest

detergent marketer and one of the world's biggest detergent brands. The

Company has acquired Kisan Industries Limited situated at Village

Moraiya, Dist. Ahmedabad as a going concern, which was engaged in the

business of manufacture of detergents, Single Super Phosphate, fertilizer

and printing and packaging. The second stream of the 420000 tpa Soda

Ash plant at village Kalatalav, Bhavnagar was commissioned in September

2000. The Company also set up a pure water plant to manufacture 2.80

lacs TPA Vacuum-salt in October 2000.Debottlenecking process which was

made during 2001-02 by the company resulted in expansion of installed

capacity of Soda Ash at Village Kalatalav, from 420000 TPA to 650000

TPA. The total cost of the project is approximately Rs.110 crores. This

project is expected to be completed in September, 2002. The company

issued Secured NCD aggregating Rs.360 crores in order to augment its

working capital and also to bring-in cost effiency in funding cost

In detergents market Nirma and Hindustan Lever are close

competitors with 38% market share each. Nirma leads the popular

segment, while HLL leads the premium detergent powder segment. P&G

and Henkel Spic are the other key competitors in the detergent market.

In toilet soaps, HLL has a dominating 63% market share. Nirma has

also garnered a significant 22% market share in a short time. Other major

players in the segment are Godrej Soaps and P&G.


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The share capital of the company is

Rs.33.9 crore and the total shares

outstanding amount to 3.39 crore. The

face value per share is Rs.10. The

stock is currently trading at Rs. 418, as

on May 28, 2001. The market

capitalization of the company is

Rs.1415.85 crore. The free float is 18%

and the promoters hold 72% stake in

the company.



ANNEXURE

Board of Directors

Chairman & Managing

Director: Karsanbhai K Patel

Executive Director: Kalpesh A Patel

Director: Shrenikbhai K Lalbhai

Director: Manubhai R Shroff

Director: Rajendra D Shah

Director: Atulya Prasad Sarwan

Director: Rakesh K Patel

Director: Hiren K Patel

Additional Director: Kaushikbhai N Patel

Additional Director: Chinubhai R Shah


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Company name Sales %

yoy

Operating

profit

%

yoy

PAT %

yoy

Nirma Ltd 4826.7 40 1287.9 45 690.9 5

Smithkline Beecham Consumer

Healthcare Ltd

2376.1 21 512.3 20 324.6 16

Pidilite Industries Ltd 1145.9 20 254.2 13 135.4 9




Godrej Soaps Ltd 2051.8 18 345.3 32 184.7 602

Indian Shaving Products Ltd 730.5 16 142.2 23 56.2 16

Britannia Industries Ltd 3519 15 317.0 25 145 12

Dabur India Ltd 2989.9 14 397.1 35 222.2 24

Nestle Ltd 4694 13 875.0 24 497 37

Cadbury India Ltd 1866.8 12 350.3 28 171.5 26

Reckitt And Colman Of India Ltd 1484.7 11 98.2 (3) 59.9 16

Henkel Spic India Ltd 717.44 10 28.6 (15) 7.25 (192)

Colgate Palmolive India Ltd 2948 9 311.0 8 176 32


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I T C Ltd 10028.9 6 4662.7 19 2516.5 22

Procter and Gamble Hygiene &

Healthcare Ltd

1200.9 1 295.2 20 185.4 24

Hindustan Lever Ltd 24619 0 4475.8 9 3311.6 16

Tata Tea Ltd 2274.9 (2) 655.8 (10) 360.6 (22)

Marico Industries Ltd 1630.83 (5) 171.6 4 129.88 9

DETERGENT COMPANYS IN INDIA & HIS SALE

Yoyyear on yeargrowth

Source: India Info line database

Performance of segment

Period ended 03/99 03/00 % change

Sales value (Rs mn)

Detergents 8,100.4 8,110.7 +0.12%

Glycerine 257.9 304.7 +18.15%

Linear alkyl benzene 761.3 1,565.3 +105.61%

Salt 9.0 2.6 -71.11%

Shampoo 1.4 0.3 -78.57%

Sulphuric acid 64.6 134.1 +107.59%

Toilet soap 3,275.3 4,674.9 +42.73%

Others 2,259.6 2,383.6 +5.49%

Sales volume (unit)

Detergents (Ton) 590,031.0 615,749.0 +4.36%

Glycerine (Ton) 4,269.0 4,810.0 +12.67%


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Linear alkyl benzene (Ton) 17,688.0 31,552.0 +78.38%

Salt (Ton) 3,588.0 1,044.0 -70.90%

Shampoo (Ton) 19.0 4.0 -78.95%

Sulphuric acid (Ton) 51,588.0 67,028.0 +29.94%

Toilet soap (Ton) 75,102.0 106,626.0 +41.97%

Unit realisation (Rs/unit)

Detergents (Ton) 13,729 13,172 -4.05%

Glycerine (Ton) 60,421 63,347 +4.84%

Linear alkyl benzene (Ton) 43,040 49,610 +15.26%

Vision, Mision & Philosophy

Nirma is a customer-focused company committed to consistently offer

better quality products and services that maximise value to the customer.

This customer-centric philosophy has been well emphasised at Nirma

through:

Continuously exploring & developing new products & processes.

Laying emphasis on cost effectiveness.

Maintaining effective Quality Management System.

Complying with safety, environment and social obligations.

Imparting training to all involved on a continuous basis.

Teamwork and active participation all around.


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Demonstrating belongingness and exemplary behaviour towards

organisation, its goals and objectives.

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.


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Chepter 2

product positioning of nirmaNirma is aptly considered as a marketing miracle and this is reflected in

the strength the brand. Nirma has successfully challenged and changed

the conventions of detergents marketing and today leading business

schools are analyzing it's strategies to demystify this miracle. Nirma's core

marketing thrust revolves around prompting consumer trials by offering a

good quality product at most competitive price and retaining these new

consumers by continuously offering the same 'Value For Money' equation.

This is borne by the fact that today Nirma can boast of a strong brand

loyalty from its 400 million consumer base. Based on the pragmatic

concept of 'Umbrella Branding', Nirma has been increasingly successful in

extending its brand equity to other product categories like Premium

Detergents, Premium Toilet Soaps, Shampoos, Tooth pastes and Iodized

Salt, thus opening new vistas to the field of Brand Building.

Detergents

Nirma dominates the popular detergent segment with brands like Nirma

Popularpowder, NirmaDetergentpowder, Nirma bar, etc. Super Nirma

detergent powder is positioned in the mid-priced segment. Detergent

volumes in FY00 increased by 4.4% to 615,749 tons.

Nirma Detergent Powderwas launched in 1969, by Mr. Karsanbhai

Patel. The product created a loyal customer base that increased day by

day. In 1982 Nirma Detergent Powder became the largest selling detergent


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powder in western India and by 1989 the same was established on the

national scene. The detergent when launched was priced one third that of

the nearest competitor. The detergent powder was overnight converted into

a common mans necessity from being a luxury of a few. The credit goes to

the pioneer of this new environmental friendly technology, Mr. Karsanbhai

Patel who lowered the usage barrier and started the Nirma phenomenon

which took the world by storm. After a period of more than 20 years the

poly packet for Nirma Detergent Powder was changed in 1998 to

differentiate it from me too look alike'.

The strategy seems to have worked as consumers have successfully

identified the new pack as a genuine Nirma product. The product today is

available in two pack sizes 500 grams and 1000 grams.

Super Nirma high quality spray dried detergent was launched into

market in 1996 with a price 40% lower than the nearest competitor offering

the same quality.


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With in a short span of two years Nirma Super Detergent

Powder cornered substantial market share in the premium detergent

segment. The brand targeted towards Nirma consumers who were shifting

towards more sophisticated form of washing, clicked very well as the ever

dependable Nirma Brand name assured high quality at affordable prices.

The powder is available in 25 grams, 500 grams and 1000 grams in

polypacks.

Nirma launched a flanking brand namedNirma Popular Powderin

selected pockets where Detergent powder usage was limited or the me too

brands were eating into Nirma's share. The product was a good product

available at prices that would switch people to use branded powder. The

substandard products took a severe beating in the pockets where Nirma

Popular was launched. It is available in 500 grams and 1000 grams pack

sizes. The product with similar name and slightly different formulation is

being sold in the exports market successfully.

Nima Green Powderintroduced in Q4 - '99 is Nirma's introductions in

a segment which was not addressed by Nirma till then. This powder

positioned in the economy segment has lingering fresh lime perfume. It

scores high on cleaning efficiency and generates a good amount of lather

leaving clothes sparkling clean. This powder is packed in multi-colour poly

bag. This product is available in 500-grams and 1-kg packing and is sold

exclusively through the efficient Nima distribution network.

Driving the inspiration from its success in Detergent powder

market, Nirma expanded its product portfolio by introducingNirma


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Detergent Cake in 1987. The cake was launched keeping in mind the

washing habits of rural India where limited use of bucket and more so of

running water added to the wastage of washing powder. The answer was

brought by Nirma in form of Detergent Cake. The brand today is ranked as

most distributed detergent cake brand in the country by AIMS retail audit.

The product is available in two pack sizes of 125 grams and 250 grams

The positioning ofNirma Popular Detergent Cake is similar to that of Nirma

Popular Detergent Powder but meant to fight other detergents cake. This

product is more important as the unorganized players are far more

penetrated in cake market as compared to that in the powder market. The

product is available in 125 grams and 150 grams pack sizes. .

To meet the consumer's growing aspirations and to allow consumers

to upgrade to a better quality product, Nirma introduced Super Nirma

Detergent Cake in 1992. As Nirma Detergent Cake is to Nirma Detergent

Powder, Super Nirma Detergent Cake is to Super Nirma Detergent Powder.

It was launched to woo back the Nirma Detergent Cake user who had

shifted to the competitor's product. The cake has high detergency value at

an affordable price. It is available in 125 grams and 250 grams sizes.

Launched in Q4 - '98,Nima Green Cake became a close no.2 in its

segment within 3 months of its launch and was successful in arresting the

growth of competition in this segment. This brand has seen a number of

consumer promotion schemes tied with it. The splendid laminated multicolour

wrapper, which shows a slice of lemon and trishul, exemplifies razorsharp

dirt cutting efficiency of this cake. This cake is rich in lime perfume


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and has an exceptionally high brand recall. It is available in sizes of 125

grams and 250 grams

Nima Blue Detergent Cake was introduced as a low cost alternative to

the then available blue detergent cakes in Q4 - '99 in very few select states

and has ever since been performing very satisfactorily. It is the epitome of

Nirma's endeavor to provide better products at more competitive prices. It

is available in 125 gram and 250 gram pack sizes. This cake is packed in a

dark blue wrapper and has strong eye catching presence on the shelf.

Nima Bartan Barwas launched in Q1 - 2000, gives an outstanding

performance is Nirma's foray into the scourer's market. The slogan Darpan

Hai Ya Bartan" in the product's TV commercial has helped immensely in

conveying the message of "Bartan Bar's cleaning efficiency very quickly

across all segments. Our TV commercial supports our positioning of Nima

Bartan Bar as the one giving superior quality cleanliness and making the

utensils shiny and sparkling clean. Nima Bartan Bar is available in a 400

gram packing.

Nirma Clean was launched in Q2 - 2000 and is available in a 300

gram bar packing. The "Chak Chaka Chak" television commercial of 'Nirma

Clean', showing a whole set of spotless, clean vessels in a kitchen

sparkling with starlight, delineates the high cleaning quality of this scouring

cake. It is targeted at the low end of the market. 'Clean' is expected to

trigger conversion from the unbranded detergent powders and cakes.

Nirma expects the scourers market to undergo dynamism with its

introduction of two scourer cakes.

Bathing Soaps


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Nirma Bath Soap (Carbolic): Toilet soap market was dominated by

few MNC's who could monopolistically drive the prices. The growth of toilet

soap market was tremendous in 90's and was expected to increase further.

Nirma's brand equity in detergent market was very strong and was

unanimously associated with value for money products. We saw no reason

why cannot this be extended to the personal care market. Nirma ventured

into this market with Nirma Bath a carbolic soap to counter the largest

selling soap from a MNC stable. The carbolic soap segment though a

declining market saw a sudden burst of activity. Nirma Bath started gaining




substantial volumes at the cost of he competitor's and India's largest selling

brand. The pricing of the product was penetrative at a quality (TFM - 60%)

which the competitor's could not match. The product is available in 75

grams and 150 grams pack sizes.

Nirma Beauty Soap: After targeting the largest selling toilet soap

with Nirma Bath, now was the time to target the second largest selling toilet

soap. Nirma after successful launch of Nirma Bath launched, Nirma Beauty.

Nirma Beauty was a popular category soap which targeted the middle and

lower middle class population of the country. The product had high TFM

content of 70%, an excellent aroma and an advertisement with a touch of

aspiration. The product became an instant success, and in no time became

India's third largest selling toilet soap brand. The volumes came from the

category shift as well as brand switching. The product is available in 100


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grams and 150 grams pack sizes and three different perfume variants.

Recently company has changed its packaging and made it more

contemporary by printing the wrappers on six color Cerruti machine from

Italy thereby differentiating it from the me too look alike'. The brand today is

growing very fast and is firmly moving towards the second position.

Competitors tried

to copy the concept and the commercial but were not able to match

the success of the brand. As it is said you cannot fool consumers when it

comes to quality

Nirma Premium Soap: For the first time in the history of FMCG there

was an attempt to extend the value for money proposition to the premium

segment. The concept was innovated by none other than Nirma. Nirma

launched Nirma Premium Soap during 1996 in the premium soap category

with 80% TFM, mild fragrance, three variants and a touch of class in its

advertising. The brand targeted to match the changing Nirma consumer's

profile in terms of aspiration, quality consciousness and image perception.

The brand has started picking up volumes in the premium soap market

which is characterized by large number of brands and cut throat

competition. Nirma Premium has been able to differentiate itself in this

cluttered market its unique packaging and exclusive advertisement.




Nirma Lime Fresh was launched in 1997 with absolutely no

advertising support. The lime segment of the toilet soap market was


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growing at a sedate rate, prior to the launch of Nirma Lime Fresh. Launch

of Nirma Lime Fresh saw the volumes of the segment grow at more than

10%. During the first year of the launch Nirma Lime Fresh over took the

largest selling brand in the lime segment. The product is priced

competitively with 80% TFM content and strong tingling lime fragrance. The

commercial was aired during the later part of the year which saw the

volume grow rapidly. The commercial shot at Maldives and Switzerland with

a new and young face was equally liked by consumers. The successful

launch was termed as the seventh best launch of the year 1997-98 by

Business Standard. There in no looking back and today Nirma Lime Fresh

is the undisputed market leader in the lime segment and is giving shivers to

the competition. The product is available in 75 grams and 150 grams.

Nima Rose: The remarkable and phenomenal market response

received by Nima Rose soap within just two months of its launch has once

again proved the merits of Nirma's commitment towards its consumers.

Nima Rose soap has got an exceptionally fine perfume of rose that lingers

around your body for a long time even after you bath. Due to high TFM

(Totally Fatty Matter) content, it provides one of the nicest baths. This

brand has already carved niche in its particular segment by achieving

leadership position just within tow months of its launch.

Nima Lime, the first product in the Nima range of products has a very

high TFM content and was introduced in Q2 - ' 98 when the astounding

success of Nirma Lime Fresh Soap prompted competition to launch lime

variants in the same price segments. Nirma is committed to the concept of

umbrella branding. We have reaped benefits of this strategy right from our


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inception till date. In the past, we have faced umpteen numbers of

situations where the competition introduces special campaigns to draw

away the consumer's attention from our core brands like Nirma Detergent

Powder, Super Nirma Detergent Cake, Nirma Beauty Soap, Nirma Lime

Fresh Soap, etc. The purpose was to lure away consumer attention from

Nirma Lime Fresh Soap by temporarily modifying the product. We, at this



point of time introduced a 'fighter brand' called Nima Lime to provide at

shield to our core brand - in this case 'Nirma Lime Fresh Soap'. The

success of Nima Lime has been the cornerstone in Nima brand growing

into a full fledged business

Nima Sandal: This soap was launched in Q2 - '99. Over a period of

time, the Indian toilet soap market has fragmented and has seen the

emergence of prominent segments such as Sandal, Rose, Jasmine, Body

moisturizing soaps, Herbal etc. Nima Sandal is Nirma's offering in

the ethnic sandal segment. With a rich and exotic perfume and 80% TFM

content, this toilet soap is available in a 100 gram packing. Nima Sandal is

promoted by a TV commercial shot at exotic locales depicting the form of

21st Century Indian woman. Early market indication promises this brand to

be the future no.1 in this segment.

Nima Herbal is the emanation of Nirma's quality and caliber. Nima

Herbal is ingrained with benefits that accrue from using various herbs,

shrubs, medicinal plants and various day-to-day commodities like sandal

wood, lemon, turmeric, coconut, tulsi, neem etc. that are gifted to mankind


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by nature. Nima Herbal is the nature's legacy. It is reflection of Nirma's

conviction of "Care For The nature's legacy. It is reflection of Nirma's

conviction of "Care for the Consumers". It was launched in Q3, 2000 with a

78% TFM content in a 100 gram packing.

Nirma Herbalina: Nirma has invariably identified the nerve of the

market and answered it at the proper time. We addressed the ayurvedic

and medicated soap segment with Nirma Herbalina. Launched in Q3 - 2000

with a high TFM content, 'Herbalina' is Nirma's latest introduction in the

range of toilet soaps. The natural commodities that are shown on the

wrapper blend very well with the green colour of the eye-catching pack.

Available in a 100 gram packing size, Nirma Herbalina is the 'Natural flow

of freshness'. It is Nirma's yet another impression of 'Better Products,




Better Value, Better Living'. Herbalina has an exceptional long-lasting,

heart-capturing aroma.

OTHER PRODUCTS:


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1. Hair care

a. Nirma Beauty Shampoo

b. Nirma Shikakai

2. Toothpaste

a. Nirma Toothpaste

3. Iodized Nirma Free Flow Salt

a. Industrial chemicals

price

Ivory tower theories are rethinking their business basics-thanks to

Karsanbhai K.Patel. Taking on the might of a multinational, his-priced

detergent Nirma captured a majority market share arresting the sales and

growth of a consumer giants up market brand. Among the greatest

success stories in the annals of marketing management in India is that of a

low-priced detergent of reasonably good quality which, in the course of a

mere decade, put the skids on a product that was considered the pride of a

powerful multi-national. The story of Nirma has become a classic as a

marketing case-study. And the story of its progenitor is as genuine and

romantic a tale of rags-to-riches as one could hope to find anywhere.

For harried housewives, struggling to balance their monthly budgets,

Nirma came as a boom. It was much cheaper than Surf, which had already

gone well out of their reach; and it washed clothes nearly as well. Its

cleansing power was far superior to that of the slabs of cheap washing

soaps that had been their sole alternative until then. By the early 1980s the

burgeoning sales of Nirma reached a rate of growth that was twice or thrice


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that of the industry in general. Moreover, Nirma operated in the small-scale

sector and, therefore saved an enormous amount of excise duty that

multinationals had to pay on every kilo of detergent produced. The latter

simply could not hope to bring the price down to a level that was attractive

enough for the middle and lower-middle classes, which were the bulks

segments for Nirma sales.

The pricing policy adopted by Nirma for its Nirma washing powder i.e.

adequate Quality at an Affordable price has challenged the mighty HLLs

Surf.

Nirma Washing Powder

1kg

18.00

18.00

Nirma Washing Po

Nirma Washing Powder

500grams

9.00

9.00

Even the second product that Karsanbhai introduced-a low-priced

toilet soap, which he thoroughly test marketed in Gujarat before going

national with it in 1990-hs been faring well. Nirma toilet soap retails at a

mere Rs.2/- with the shopkeeper allowed to retain 25 paisa behind each

cake sold. The Nirma name itself was a guarantee of quality for the

consumer smiles the businessman. It found ready acceptance. Today,

Nirma's toilet soap products are priced in the range of Rs 6-9. Nirma Lime


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Fresh, for instance, commands a price of Rs 8 for 75 grams, while Nirma

Premium is priced at Rs 9. Nirma Bath, a popular soap, is priced at Rs 6. In

comparison to Nirma's price range, HLL's toilet soap brands are priced at a

slight premium. LifeBuoy is priced at Rs 14, and LifeBuoy Gold at Rs 9.

The price of Rexona is Rs 9.50, while that of Liril, which competes with

Nirma Lime Fresh, is Rs 13.




Thus it is a well known fact that Nirmas best Unique Selling

Proposition is Price

The result of there cost effective product offering is that though the

industry has been growing at the rate of 15 per cent annually, Nirmas

growth has been at least 30-35 per cent a year for the last few years.

Nirma has been successful in keeping its prices at such affordable

levels primarily due to their strategy of backward integration projects.

These projects had been undertaken with a strategy to become the lowest

cost detergent manufacturer in the world. Self sufficiency in key raw

materials will give protection against commodity cycles besides yielding

substantial savings in raw material cost. The company estimates a total

cost saving of 25% in material and handling costs due to the backward

integration projects. The LAB plant has yielded about 12% cost savings

and the company expects a similar cost saving of about 12-15% once the

soda ash plant stabilizes. Overall the backward integration has yielded a

cost saving of Rs0.8-1bn last year. Post completion of backward integration


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the company now plans to focus on building large volumes and gain from

economies of scale.

Till 1985 the Nirmaingredients were simply mixed by hand thus

requiring neither machinery nor capital investment. Due to the scale of his

product and the simple non-mechanized production process, Nirmagained

a number of tax and excise benefits for not using electricity. Since

Nirmawas a small-scale local venture, they did not have to pay excise

duties that were levied on multinationals.

Another area where Nirmasaved millions was in labor costs. Being a

cottage industry Nirmawas not compelled to abide by minimum wage rules.

To maintain low costs Karsanbhai used contract workers who were paid Rs.

85 per ton (In 1985 $1 U.S = Indian Rupee 12.368)1for mixing raw materials

and then bagging them into 1000 bags of 1 kg each. Payment was made

according to work done and since labor was not permanent no additional

overhead for benefits etc. needed to be paid. It was not until the mid 80s

that Nirmastarted to mechanize their production process, however by then

they were an already well-established name. In 1989 Nirmas labor costs

for 8000 workers was estimated to be between Rs 15-20 per person day in

comparison to HLL who paid their semi-skilled workers approximately Rs

30-40 per person day. (In 1989 $1 U.S = Indian Rupee 16.225)2


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Chepter 3

SUPPLY CHAIN OF NIRMA:

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.

The distribution strength of Nirma is based on mutually rewarding and

satisfying relationship.

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


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channels of the country.

Principal Channel [Nirma Products]:

Lowest Cost system in India

Speed in distribution

Flexibility

The NIMA range of products is marketed through a parallel marketing

network that comprises of more than 2000 distributors.

Parallel Channel [Nima Products]:

Wider Reach

Speedy Market Intelligence

Competitive edge & Better focus

Complementing Principal Channel

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.


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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.


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DISTRIBUTION

In its incipient days Karsanbhai Patels distribution network and

sales force was a one-man team..himself. Karsanbhai affected his

deliveries of washing powder on foot. As the popularity of Nirma grew with

a spread of positive word-of-mouth Karsanbhai adopted the time-honored

Coco Cola maxim that his product should be available within an arms

length of desire. So he concentrated on widening his distribution network;

and Nirma began surfacing all over Gujarat, in scruffy little shops in even

the remotest villages. As the products fame spread, agents from all over

the country began writing in, and expressing their willingness to operate on

the tiny margins that the businessman gave. Distribution is clearly the key


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to rural marketing, which Nirma has pioneered over the years. Nirma has a

350 strong sales force, a distributor strength of 400 and a retail reach of

over 1 million outlets. When setting up a distribution system Karsanbhaiwas




extremely aware of the importance of keeping costs down. Once demand

for Nirmahad outgrown his ability to deliver on bicycle he moved on to vans

and then later to trucks. Nirmahad neither a field sales force nor owned a

distribution network. Karsanbhai negotiated prices with truck and van

suppliers on a daily basis.

As sales grew Karsanbhai eventually hired stockists(those who stocked

additional quantities of the goods) as commission agents. On the one hand

it helped him avoid central sales tax and the stockists were responsible for

all transportation, octroi,3handling and delivery costs. There was also a

strict system of protocol and distribution depended on prepayment for

stocks so as to minimize risk for Nirma.

Nirma sells over 800,000 tones of detergent products every year and

commands a 35% share of the Indian detergent market, making it one of

the worlds biggest detergent brands. The brand promotion efforts are

complemented by Nirmas distribution reach and market penetration,

through a country wide network of 400 distributors and over 2 million retail

outlets, making Nirma products available from the smallest rural village to

the largest metro.

The company has set up for Nima a parallel distribution and sales channel


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consisting of 1500 distributors and an independent sales force. A two-tier

network, the Nima distribution channel is 'flat' enabling swift market

response. The company took

great care that the new brand did not cannibalize on the existing brands.

The Nima portfolio today complements the Nirma range, furthering the

company's strategy of Value for Money.

Chenal partner-

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.

The distribution strength of Nirma is based on mutually

rewarding and satisfying relationship.




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.

Principal Channel [Nirma Products]:

Lowest Cost system in India


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Speed in distribution

Flexibility

The NIMA range of products is marketed through a parallel marketing network that

comprises of more than 2000 distributors.

Parallel Channel [Nima Products]:

Wider Reach

Speedy Market Intelligence

Competitive edge & Better focus

Complementing Principal Channel

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.

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.

Reach---

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


41/47

in the market under the umbrella brands NIRMA and NIMA along with extensions.

The distribution strength of Nirma is based on mutually rewarding and satisfying

relationship.

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.

Principal Channel :

The NIMA range of products is marketed through a parallel marketing network that

comprises of more than 2000 distributors.

Parallel Channel :

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 house-hold name. The efficient network has made


42/47

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. 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.


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Chepter 4

SUGGESTIONS

NIRMA is best detergent company in india. Its product quality is also very

good. But compare to other company nirmas marketing is lower then other.

If Nirma improve his marketing quality. So he improve his sale in Indian

market.

Because jo dikta hai wo bikta hai.

Doing market survey. And justify the costumer.

Should be more particular about Post Sales Follow Up as it shows

the concern of the company with the customer.

Should put in more efforts to promote the Nirma product.

Improve themarketing strategy.




Bibliography:

www.google.com

www.nirma.com

Magazines(india today)

Marketing Management by Philip Kotler


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Kothari. C. R, Research Methodology, New Age International(P)

Ltd., New Delh

the following questionnaire.

Q.1 DO YOU USE DETERGENT ?




Yes-

NOQ.

2 WICH PROUDUT USE IN DETERGENT ?

1. Nirma

2. Surf Exel

3. Tide

4.Ghadi

Q.3 WHAT YOU THINK ABOUT NIRMA ?

..

.

.

Q. 4 WICH PRODUCT PRODUCT IS THE THE BEST NIRMA ?

1.Soap

2.Detergent

3.other

Q. 5 DOES THE COST EFFECT ON YOUR CHOICE ?


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Yes-

NOQ.

6 WHATDO YOU THINK ABOUT NIRMA ?

..

Thanks.


Mgmt. , in


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SUBMITTED TO:

UNIVERSITY OF MUMBAI

PROJECT ON:

RECRUITMENT AND SELECTION PROCESS

SUBMITTED BY:

SHAIKH JAVID KHALIL

M.COM PART-1 (SEMESTER-1)

UNDER THE GUIDANCE OF PROF.

P.T.V.A.S

M.L.DAHANUKAR COLLEGE of commerce

Vile parle (East),mumbai

2012 -2013


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Documents

A Project on Detergent