LOVELY PROFESSIONAL UNIVERSITY

Reg no. NameRQ1402A09RQ1402A08RQ1402A05RQ1402A02RQ1402A06

Sukhjeet kaurPooja deviArapanjot kaurMayank GuptaSatwinder singh

Indian soaps and detergent Industry case study.

contentIntroductionProfile of the Nirma company Theory of marketing mix(4ps)Products of Nirma Failure of NirmaSWOT analysis of NirmaRoad of success Conclusion

Introduction • Started as a one- product on-man outfit in 1969 by a chemist Karsanbhi Patel•The new yellow powder detergent was at Rs 3.50 per kg at a time when HLL’s Surf was priced at Rs 15.•The company’s mission to provide, “Better Product, Better Value, Better Living.” Contributed a great deal to its Success.

Company profileDate of establishment :-1980Revenue :- 452.788(USD in millions)Market Cap :- 40689.7843933(Rs million)Management Details :- Chairperson-Ks Patel, MD-Hiren k Patel, Directors –AP Sarwan ,Chinubbai. Business operation :-Household and personal products.Background :-Nirma a having a turnover of Rs2500Crore started its journey as one –man operation by Dr.Karsanbhai Patel. He was a science graduate and worked as junior chemist in a government laboratory- He manufactured detergent at the backyard of his house. Later selling them door to door soon it got well placed in the consumer community and the company was in corporate in1980.Financials :- Total income Rs 22942.9million(year ending mar2013 Net profit Rs 1738.7million.

“Marketing mix ” is a general phrase used to describe the different kinds of choices organization have make in the whole process of bringing a product or service to market. The 4ps is one way-probably the best-know way-of defining the marketing mix, and was first expressed in 1960.

Theory of marketing mix(4p's)

The marketing mix and the 4ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing.

The 4ps are:

Products of Nirma1)Soap• Nirma Bath soap• Nirma sandal2) Detergent• Nirma washing powder• Detergent cake3)Salt• Nirma suddh namak

StrengthLow cost.Strong distribution channel.High productivity.High brand quality.

WeaknessLack of global tie-up.High interest burden.Less popular with the elite class.Sub- optimal working condition.

Opportunities

ThreatsA growing FMCG market.Fast development rural market.Entry into other categories like shampoo& toothpaste.

Strong competitors.Substitute product .Market entry by new players.

SWOTAnalysis of

Nirma

Failure of Nirma

•It suffered with the inability to innovate in product.

•When customers are largely shifting from economy brands to aspiration brands Nirma failed to capitalize on shift.

Road of success

• Process of product was labor intensive this gave employment to large no of people.

• It focused on cost reduction strategies.

• Speedy distribution channels parallel market network.

ConclusionThe conclusion is that Nirma gave another meaning to product Differentiation as It Showed how a low price can gain Market share and make a big company to review its Strategy. It showed that Marketing in not only meant for a particular class of people but its all about how to make a product affordable to every class people. Either he is upper or lower class. Karsanbhi Patel Showed that price led Strategy is key to success.

THANK YOU