PRODUCT

Nirma is aptly considered as a marketing miracle and this is reflected in the strength of 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.
This product created a marketing miracle, when introduced in the domestic marketplace. In
1969, when the detergents were priced so exorbitantly that for most of the Indians, it was a
luxury
item. Nirma envisioned the vast Fabric Wash market segment and sensed a tremendous potential
therein. This product was priced at almost one third to that of the competitor brands, resulting
into
instant trial by the consumers. Owing to its unique environment-friendly, phosphate-free
formulation, the consumers became loyal to this brand, helping it to over-take the decades old
brands, in terms of volumes. 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]. As per the ORG-MARG Rural Consumer Panel [December 1998]
survey,
Nirma brand has been ranked as highest in terms of penetration in washing powder category [BT
Rural Market Watch, Business Today, June 22, 1999].

Detergents
Nirma dominates the popular detergent segment with brands like Nirma Popular powder, Nirma
Detergent powder, 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 Powder was 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 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. 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 named Nirma Popular Powder in 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 Powder introduced 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 introducing Nirma 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 of Nirma 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 multi-colour wrapper, which shows a slice of lemon and trishul, exemplifies
razorsharp dirt cutting efficiency of this cake. This cake is rich in lime perfume 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.
Supply Chain of Nirma

Nirma Limited markets its products through its fully ownedN 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
· 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 Principle 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
Distribution

In its incipient days Karsanbhai Patel’s 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 arm’s 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 product’s 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 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 Karsanbhai was
extremely aware of the importance of keeping costs down. Once demand for Nirma had
outgrown his ability to deliver on bicycle he moved on to vans and then later to trucks. Nirma
had 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, handling 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 world’s
biggest detergent brands.
The brand promotion efforts are complemented by Nirma’s
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 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

Levels of Channel Distribution

Company Manufacturing
Unit
Consolidator
Wholesaler
Semi-Wholesaler
Retailer
Consumer
Strengths:
 Strong brand equity. Nirma is a Rs.17 billion umbrella brand offering
consumers a broad portfolio of products at multiple price points in the Detergents, soaps
and personal care market.
 Produce a range of industrial chemical products which primarily serve as raw material
or intermediates for soaps and detergent business.
 Market leadership in detergent market and fabric wash industry player in toilet soap
industry.
 Wide distribution network.

Weaknesses:
 High intrest burden
 Less presence in premium segment.
 Lack global tie ups and thus lacking in export market.

Opportunities:
 Exports
 Acquisition for strengthening its distribution tie ups.
Entry into other categories like shampoos, toothpastes and fabric whiteners.

Threats:
 MNCs coming to India particularly in Toilet and Soap industry.

 Emergence of small but strong regional players