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Prateek chhabra (16)Amit rai (10)Kulvinder pathania (27)Shubhangi chouhan (61)Ashish sonewane (29)Gaurav chouhan (57)

The Nirma Story

a dynamic phenomenon,

a philosophy,

a revolution

that changed our lives!

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The Beginning.The Beginning.y In 1969 Gujarati entrepreneur, Dr. Karsanbhai Patel,

set up his first detergent-making unit in the backyardof his home in Ahmadabad measuring all of 100square feet.

y With bare hands and a bucket, he would prepare thedry mix detergent powder that he had invented, packthem in polythene bags and then set off on his bicycleto sell the packets door to door.

y Every packet of Nirma that Karsanbhai Patel sold tohis consumers came with a money back guarantee.

y The cost-conscious approach of the initial years was to

evolve into a strategic perspective.

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Some FactsSome Facts

y Nirma is named after Nirupama daughter of Dr.

Karansanbhai Patel

y Dudh si safedi Nirma se aye,

rangeen kapda bhi khil khil jaye

Jingle used since last 35years

y Same radio spot has been used consistently since

last 28yearsy Nirma is one of the largest selling single detergent

brands in the world

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d

ifferent pathA

diffe

rent path

y Identified new markets.

y Expanded markets where others failed

y

Achieved penetration where others feltconsumers mind set could not be changed

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Success PathSuccess Path

yValue for money concepts

yRural focus

y Flat, efficient, robust distribution

network

yMulti dimensional aggressive marketing

and manufacturing strategy

yAggressive media strategy

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ResultsResults

yValue for money concept

yWashing habits changed

yWidespread conversion from oil soap andsoda ash to detergent powder

y Size of detergent market in no time

multiplied manifoldy Single product brand

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Present ScenarioPresent Scenario

y 8 manufacturing locations.

yAmongst top 10 Indian Brands.

y Nation wide Distribution reach.o400 Distributors

o2000000 Retailers

o40 Depots

y Strong human resource base consisting of 14000

employees and 500 professionals.

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RecognitionRecognition

y This brand had been ranked as the Most widely distributed

detergent powder brand in India as per All India Census of

Retail Outlets carried out in 435 urban towns by the AIMS

(Asian Information Marketing & Social) Research agency

[Brand Equity - The Economic Times, March 11, 1997].

y As per the ORG-MARG Rural Consumer Panel [December

1998] survey, Nirma brand has been ranked as highest in

terms ofpenetration in washing powder category [BT RuralMarket Watch, Business Today, June 22, 1999].

y 9th among Top FMCG brands of India ( A& M MODE-

2002)

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Prod

ucts

Prod

ucts

y Detergents: Spray dried powder, Compact dry

mixed, Cakes

y Toilet Soaps: BeautySoaps , Carbolic Soaps,Premium Soaps

y Packaged Foods: Iodized Salt

y

Industrial Products: LAB, Glycerin, AOS,Sulfuric Acid, Sodium Silicate, Soda Ash, Salt

y Fertilizers: Single Super Phosphate

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Marketing StrategyMarketing Strategy

y Product Positioning: Nirma found its place between theexpensive detergents and inferior washing soap slabs. TheNirma brand was quickly recognized in Gujarat andneighboring parts of Maharashtra and the rest is history.

y Pricing: Nirma transformed the face of Indian detergentmarket by staging the strength of low-cost detergentpowder segment. The new yellow powder was priced atRs. 3 per kg, at a time when HLL's Surf was priced at Rs

13.

y Distribution: Nirma targeted non-users of Surf thusavoided the attention of HLL and later grew rapidly and

was unstoppable once it was in the right mode.

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Financial ReportFinancial Report

PARTICULARS 2009-10 ( Cr.) 2008-09 (Cr.)

SALES 3117.95 3030.17

PBT 276.32 118.33

PAT 237.94 93.43

* CURRENT SHARE PRICE - 219.15

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Segme tatio of Deterge t ma rket i I diSegme tatio of Deterge t ma rket i I di

Segmentation OfDetergent

Powder Market

Premium

Ariel, Surf Excel

Mi p ic

Surf Excel Blue, Tide,

Henko

Mass Market

Nirma, Wheel and Fena

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OverviewofDetergent IndustryOverviewofDetergent Industry

y Total detergent Market value- 13000 cr.

y Market Share

*Others Henkel, Nirma and Fena

*Source: DNA 9th Sep 2010

37%

18%

16%

29%

Hul

Ghari

P&G

Others

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4 ASofRural Marketing4 ASofRural Marketing

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Breaking cost barrierBreaking cost barrier

y Cost competitiveness

HLLs surf was highly priced in India during

1970s

Yellow powder was mixed manually in

workshops to get excise concessions.

Managed with a workforce of 10,000 and 200

managers thereby trying to break the costbarrier.

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AVAILIBILITYAVAILIBILITY

y 350 strong sales force, a distributor strength of400 and a

retail reach of over 1 million outlets

y Supply chain management-

Managed to source packages from only 10 vendors but

incurred high costs and delay in deliveries.

Adopted centralized packaging: Able to cut its inventory

costs by40 %.

Adopted flat distribution system: Nirma was directly

connected to distributors and no agents in between.

Railway for bulk movements

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StrategyStrategy

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y Backward Integration

After the withdrawal of the excise commission in 1982

Patel got into backward integration.

Started manufacturing Sulphuric acid, Alfa olefin

Sulphonate, Fatty acid in 1983.

1990 Glycerin \ 1994 Packaging \ 1995 Single superphosphate \ 1997 N Paraffin soda ash ,Industrial

salt, Edible salt, Captive power point.

y Sustainable advantage Low cost labor

Superior processes

Mindset of cost-conscious consumer

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Marketing & DistributionMarketing & Distribution

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AWARENESSAWARENESS

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Media MixMedia Mix

OBJECTIVE

Reach Geographical dispersed buyers

METHOD USED

Advertisement

Radio

Wall painting

Vans/Trains

Direct and Interactive marketing

Personal Selling

Expert Channel Changing Washing Habits. Product Demonstration

Sales promotion

Prize Draw

Introduce bucket scheme to promote product hamper

Money back guarantee promotion scheme

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PromotionPromotion

y Nirma believes in advertising only after they havelaunched aproduct in place.

y Nirma's advertising has always focused on the value-for-

money angle.

y In 1982 we witnessed the birth of the first film for thebrand, with the effervescent jingle. Its simple and catchy

Dudh si safedi Nirma se aye,

rangeen kapda bhi khil khil jaye

y Nirma spent only 1.25 - 2 % of its turnover on advertisingas of 6 10 % likewise other FMCG companies.

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BrandingBranding

y Nirma followed its original marketing and pricing

strategies in both economy and premium segment.

y Launched product categories like premium detergent

and premium toilet soaps in mid nineties and in 2000entered hair market like nirma shikakai, nirma beauty

shampoo.

y Challenged the biggest competitor, HLL by launching

nirma bath against lifebouy, nirma rose against breezeand nirma lime against lime.

y Manufactured soaps with right scents keeping prices low.

y Geographical diversity Pink soaps in north, Green and

sandal soa s in south.

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y In 1989 the second commercial featured thesuperstar of those days, Sangeeta Bijlani, along withmodels such as Shikha Swaroop and Anuradha Patel.Used starlets like, Sonali Bendre and Riya Sen fortheir beauty soaps

y In 2005 a little change from its predecessors this

was the food throwing ad(Hema, Rekha, Jaya, Sushma). It lent names andprofiles to Nirma housewives

y The jingle being a part of Nirmas

communication, was rarely tweaked with the swirl ofNirma girl in a frock on the pack shot.

y Other constants in a Nirma film included twirl ofsaris by models in outdoor locations.

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y In 2009 Nirma wakes up and decides to undergo

a personality transplant. A whopping Rs1.5 croreis spent on that thought.

y The result a 'underwater' commercial, which

showed dancers moving with flowing fabric - ametaphor for clothes being washed in a bucket.

y It did not use the iconic Nirma jingle.

y Now, Nirma is back to talking about the dirttackling properties of the detergent, as well as usethe legendary 'Washing powder Nirma' jingle.

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ACCEPTABILITYACCEPTABILITY

yBetter quality products

yCheaper in price

yEasy availability

yValue for money

y

Need fulfilled for lower and middlelower class

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STRONG BRAND EQUITY

BACKWARD INTEGRATION

MARKET LEADERSHIPDISTRIBUTION NETWORK

HIGH INTEREST BURDEN

LESS PRESENCE IN PREMIUM SEGMENTLACK GLOBAL TIE UPS

EXPORTS

ACQUISITIONS FOR STRENGTHENINGITS DISTRIBUTION TIE UPS

ENTRY INTO OTHER CATEGORIES

MNCs COMING TO INDIA IN TOILET ANDSOAP INDUSTRY

EMERGENCE OF SMALL REGIONAL PLAYERS

STRENGTHS WEAKNESS

OPPORTUNITIES THREATS

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Losing BusinessLosing Business....

y Nirma suffers from the inability to innovate in

the product categories

y With rising incomes, consumers are nowshifting from economy brands to aspirational

purchases.

y

The rivals have products across all price pointsto mitigate the inputs cost effects while nirma is

available in only one plank-Value for money.

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Any Questions.Any Questions.