the nirma story - group 5
TRANSCRIPT
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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??