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8/4/2019 Case Study 3 Nirma
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Case Study on Nirma
Prof. V.S. Bhakre
Management Consultant & VisitingFaculty
8/4/2019 Case Study 3 Nirma
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NIRMA → “MADE FOR INDIA.” STRATEGY.
Technology Must Alter The Lifestyles of A Significant Mass of People.
With In 3 Years of Entry The Size of Detergent Market shot up 7 Times
Why? It Was Giving A Detergent To The Masses @ Rs. 9/Kg Vs Surf Rs. 27/kg.
A Poor Soul Who Spent Her Mornings Bashing The Clothes on a Stone DiscoveredConvenience.
Nirma Dominates in Its Own Way.
7th Amongst India’s Largest Brands - Rs. 1182 crores.
Nirma- Rankes 23 rd 2→Rs 459 crores.
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Fabric Wash Market- India
i. One of the world’s largest fabric wash market.
ii. Sunlight Soap (H.L.L)-Manufactured Since 1934- sold for both
personal, Cloth washing, Tata’s 501.
iii. In 1969- Karsanbhai- committed to make Nirma- one of the biggestin the world. HLL Laughed at IT- produced 200kg/ day. Sold on bike.
iv. Strategies Used- Marketing Mix- 4 P’s→ created “AHA” Effect - Valuefor Money.
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NIRMA’S User Base Exceeds 400 Mio People.
A number even Global leaders ENVY
A testimony to Karsanbhai Patel’s Strategy – Value For Money.
Nirma Gave Emotional Benefit That Actually Changed Life Styles.
Aim For “AHA” Effect.
See A GAP & Fulfill the Need & Use It as an Opportunity
“Made For India” Strategy
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Nirma → H.L.L’s Arch Rival
i. Mr. S. M. Datta- Chairman- H.L.L. 1991 Complimented- Karsanbhai Patel ForHelping the company to develop Its Agility & Competitiveness.
ii. In 1997- Mr. S. Sen- Ex. MKTG Director Stood In front of a small store in a Remotevillage near Ghaziabad Shop Keeper serving a small boy with a plastic Bagcontaining “Nirma” Powder from a gunny Bag.
iii. During 80’s Nirma - Biggest detergent brand in India & one of the Biggest In the
world. H.L.L had to Fight Back But too late !
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Marketing Mix→ Product - 1985SURF NIRMA
Active Ingredient Double(2x) Single (x)Builder Yes No
Buffer Yes No
Whitening Agent Yes No
Anti Re-disposition Agent Yes NoPerfume Yes No
After wash (cloth) Soft Harsh
Hand No Action Blisters Skin Irritancy
1997- Sold →1/3 rd volume of surf
65% SODAASH
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Production:-
ii. Soda Ash, Other Raw Materials on Cash with Discounts
iii. Dumped on the Floor, Mixed with hand.
iv. Enjoyed 15% Excise Duty Benefit.
v. Mechanization only After Crossing Excise Limit.
vi. Powder manually packed in poly bags (outside).
vii.Workers changed every 3 months to avoid chemical reaction.
viii.Production continuous- 8am- 6pm all days Incl Sunday.
i. Active Ingredient (LAB- Sulfonate)- Contracted To SmallScale
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2 Placement- Distribution.
H.L.L. Nirma
40 C & F Agents District Level Distributor
4000 Stockists
3,00,000 Retailers & Whole Salers Stockist
To Avoid CST- Stockists Appointed As Commission Agent
Stockists- to Qualify As Commission Agents Min 100 Tons/Month- if Required moreAdvance Notification
If Payment not received by DD advance (30 th ) -15P/ Bag Interest
Deposit-10P/Bag on all Nirma sales transport; Octroi. Stockist Accounts
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Promotion-Stockists Funded(50%)
Loyal Stockists- even when sales Declined Stood with Nirma
Advertisement- Sangeeta Bijlani –value for money
To create Demand- Young Women .Were hired to visit retail shops & ask for “Nirma”. DET - “Aha Effect.”
Price:- Nirma : Surf→ 1:3
Result:- Market Share.
Surf Nirma
1975 40.8 -
1977 30.6 11.9
1980 21.8 31.0
1985 8.4 58.1
1987 7.4 61.6
1989 6.7 54.6
i. Lower Cost/ Wash.
ii. Converted unorganized Laundry soap MKT in
Urban More so in Rural.
iii. Nirma Squeezed HLL From Bottom & Ariel fromthe top Micro Enzyme