...tea, coffee, edible oils, soft drinks etc. Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Cadbury India Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette, Nirma etc. Strengths: 1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector Opportunities: 1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers 3. Large domestic market- a population of over one billion 4. Export potential 5. High consumer goods spending Weaknesses: 1. Lowers cope of investing in technology and achieving economies of scale, especially in small sectors 2. Low exports levels 3."Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Threats: 1. Removal of import restrictions resulting in replacing of domestic brands 2. Slow down in rural demand 3. Tax and regulatory structure COMPANY PROFILE NIRMA Date of Establishment | 1969 | Market Capitalization | 4,068 cr. | Corporate Address | Nirma limited Nirma House ,Ashram Road ,Ahmadabad – 380 009 Gujarat – India. | | Management Details | Chairperson – Dr. Karsanbhai K....
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...Introduction Nirma Company is one of the biggest company in the India. Today Nirma enjoy positioning itself as one of the India’s “top 10” brand in the country. It is public limited company. Mostly is such a vast industry that is requires worker qualified in the branches. For E.g. M.B.A., C.A., B.C.A. & you will be astonished to know that such a large company was started only by one person in 1969 & he is great Karashanbhai patel who proved the slogan “Rag to Riches”. The qualification of Karashanbhai Patel is up to standard 5 at a very early age. He himself had started marketing detergent and soap from door to door & village to village. Nirma is not looking the better sole of it’s product but also they are looking better quality. Thus Nirma operates a mission to provide, “Better Products, Better Value, Better Living” “Better Products, Better Value, Better Living” Page No: 1.2 History & Development The Story of NIRMA & LIMITED is not the story of detergent of powder. It is much more the story of the men working there and that the reason that it is interesting. Shir Karshanbhai K. Patel who is the founder of this such a big organization. The Nirma story began in 1969, when Mr. K.K.Patel rolled out the first bag of phosphate free synthetic detergents powder...
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...of keyraw materials, The synthetic detergent market can be classified into premium (Surf, Ariel), mid-price (Rin, Wheel) and popular segments (Nirma), which account for 15%, 40% and 45% of the total market, respectively. The product category is fairly mature and is dominated by two players, HUL and Nirma. Nirma created a revolution in the market by pioneering the concept of low-cost detergents. Putting the right product in the right place, at the right price, at the right time. India is a one of the largest consumer economy, with burgeoning middle class pie. In such a widespread, diverse marketplace, Nirma aptly concentrated all its efforts towards creating and building a strong consumer preference towards its ‘value-for-money’ products. In a short span, Nirma created an entirely new market segment in domestic marketplace, which is, eventually the largest consumer pocket and quickly emerged as dominating market player – a position it has never since relinquished. Rewriting the marketing rules, Nirma became a one of the widely discussed success stories between the four-walls of the B-school classrooms across the world. What do you think about the positioning of the brand? Amongst the low cost players, Nirma commands a premium positioning PRODUCT Since the launch of Nirma detergent powder in 1969, the Nirma portfolio has grown to include fabric care products, personal care products, food products, packaging and chemicals. However, the underlying philosophy...
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...------------------------------------------------- Nirma Limited * Nirma is one of the few names - which is instantly recognized as a true Indian brand, which took on mighty multinationals and rewrote the marketing rules to win the heart of princess, i.e. the consumer. * Nirma, the proverbial ‘Rags to Riches’ saga of Dr. Karsanbhai Patel, is a classic example of the success of Indian entrepreneurship in the face of stiff competition. * Starting as a one-man operation in 1969, today, it has about 14, 000 employee-base and annual turnover is above Rs. 25, 00 crores. * Largest player in Indian detergent market with share of 38% * Second largest toilet soap marketer of India with market share of 20% * 35 Depots, More than 2000 distributors, 2 million retailers and 400 million end users History:- Era of 1969- 1980 * The root of Nirma was established in 1969, when Karsanbhai Patel started door-to-door selling of his detergent powder, priced at an astonishing Rs. 3 per kg, when the available cheapest rand in the market was Rs. 13 per kg. * It was really an innovative, quality product – with indigenous process, packaging and low-profiled marketing, which changed the habit of Indian housewives’ for washing their clothes. * In a short span, Nirma created an entirely new market segment in domestic marketplace 1980:- * Private limited company was formed * The performance of Nirma during the decade of 1980s has been labelled as ‘Marketing...
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...Name: Harsh Vardhan Nathany Roll No: Room No: 6th Semester, 3rd Year Department of Management Bachelor of Commerce (Morning) Elucidate the pricing & promotional strategies adopted by companies to position their detergent products in rural markets. Indian Rural Market: Brief Overview Rural markets have emerged as an important growth engine in the Indian consumption story. With about 70 per cent of the Indian population residing in the hinterlands, rural markets seem to be a significant opportunity for business conglomerates. Rural spending was significantly higher at Rs 3, 75, 000 crore (US$ 69.44 billion) than urban consumption at Rs 2, 99, 400 crore (US$ 55.44 billion) between 2009-10 and 2011-12; wherein rural consumption per person outpaced its urban counterpart by 2 per cent, according to a study by CRISIL and preliminary data released for 2011-12 by the National Sample Survey Organisation (NSSO). Rural penetration of major durables has seen a significant up-surge. For instance, TV penetration has moved from around 31 per cent in 2007 to 39.8 per cent in 2010 while motorcycles/scooter penetration increased from 9.5 per cent to 13.9 per cent in the same period. Around 75 per cent of the sales in fast moving consumer goods (FMCG) and consumer durables sectors are accounted by Indian rural markets. Industry experts are already saying that rural India is not only shining, but...
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...November 06, 2006 case 1-428-604 Hindustan Lever at the Base of the Pyramid: Growth for the 21st Century About Hindustan Lever Limited Hindustan Lever Limited began operating in India in 1888 with the distribution of its “Made in England” Sunlight detergent. In 1931, when India was still a British colony, Hindustan Vanaspati Limited was formed Published by GlobaLens, a division of the William Davidson Institute at the University of Michigan. Research Assistant Maulin Vakil and Professor Ted London of the University of Michigan developed this case. They thank Vijay Sharma and Rohithari Rajan of Hindustan Lever for their assistance.© 2008, Ted London. Unauthorized reproduction and distribution is an infringement of copyright. Please contact us for permissions: Permissions@GlobaLens.com or 734-615-9553. DO In fact, since 1999 revenues at HLL had remained nearly constant, an outcome stockholders had not welcomed. With this lack of growth, increasing attention was directed to the company’s Millennium Plan an ambitious blueprint outlining the company’s growth strategies for the 21st century. The Millennium Plan was a part of the company’s renewed emphasis on business focus and operational efficiencies. Additionally, a core aspect of the Plan was to identify and nurture businesses of the future. Over 150 new businesses were proposed before the list was narrowed down to nine. These included a foray into drinking water, a plan for network-based marketing (along the...
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...Rural demand for, and consumption of, consumer products is set to explode. The challenge for most companies is to be able to offer appropriate products in an affordable way in relatively remote locations. It is our view that India will soon see an inflexion point in rural consumption.1 Mr. K.B. Dadiseth, Hindustan Lever Limited Chairman On August 30, 2004, Hindustan Lever Limited’s (HLL) share price on the Bombay Stock Exchange touched Rs.100.5 (US$ 2.28) - a new low for one of the largest Indian companies by market value (see Exhibit 1). In its Q2 2004 results, HLL’s bottom line had fallen by 43% due to price pressures in its mainstay detergents business. Procter & Gamble, its long-time nemesis, had unveiled a series of price cuts on its leading detergent brands, Ariel and Tide, forcing HLL to respond. As a consequence, operating profit margins, which had peaked in 2002 at 19.6%, declined to 14%.2 Furthermore, although the mergers, restructuring, and operating changes that HLL underwent in the 1990s had helped profits grow through 2003, the company’s top-line growth had remained more or less stagnant over the past few years, causing some analysts to re-align their portfolios. In fact, since 1999 revenues at HLL had remained nearly constant, an outcome stockholders had not welcomed. With this lack of growth, increasing attention was directed to the company’s Millennium Plan - an ambitious blueprint outlining the company’s growth strategies for the 21st century....
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...Strategies for the Bottom of the Pyramid: Creating Sustainable Development C. K. Prahalad Harvey C. Freuhauf Professor of Business Administration University of Michigan Business School Ann Arbor, MI 48109 Phone: 734-481-9194 Fax: 734-481-0684 E-mail: cprahalad@aol.com Stuart L. Hart Associate Professor of Strategic Management Director, Sustainable Enterprise Initiative Kenan-Flagler Business School University of North Carolina Campus Box 3490, McColl Building Chapel Hill, NC 27599 Phone: 919-962-8405 Fax: 919-962-4266 E-mail: slhart@unc.edu DRAFT Not for citation or distribution without the permission of the authors August 1999 As multinational firms (MNCs) search for avenues for profitable growth and radical innovation in the new millennium, they may find a unique, counter intuitive opportunity – the 4 billion poor that are at the bottom of the economic pyramid. Converting the very poor into active consumers will foster innovations in technologies and business models. It will challenge managerial (and public policy) assumptions about sustainable development. Managers will be forced to consider the meaning of scale – the need to marry highly distributed small-scale operations and a few world scale capabilities --creatively along the value chain. Most importantly, conceiving of a market of 4 billion of the world’s poorest people will force a reexamination of the “price–performance” relationships for products and services. It will demand a new level of capital efficiency...
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...THE WILLIAM DAVIDSON INSTITUTE 06 November 2006 case 1-428-604 Rural demand for, and consumption of, consumer products is set to explode. The challenge for most companies is to be able to offer appropriate products in an affordable way in relatively remote locations. It is our view that India will soon see an inflexion point in rural consumption.1 Mr. K.B. Dadiseth, Hindustan Lever Limited Chairman About Hindustan Lever Limited Hindustan Lever Limited began operating in India in 1888 with the distribution of its “Made in England” Sunlight detergent. In 1931, when India was still a British colony, Hindustan Vanaspati Limited was formed as a 100% subsidiary of Unilever in India. It primarily sold soaps, detergents, and other household products to a select group of affluent consumers, such as British government employees and the Indian elite. In Research Assistant Maulin Vakil and Professor Ted London of the University of Michigan developed this case. They thank Vijay Sharma and Rohithari Rajan of Hindustan Lever for their assistance.© 2008, Ted London. DO In fact, since 1999 revenues at HLL had remained nearly constant, an outcome stockholders had not welcomed. With this lack of growth, increasing attention was directed to the company’s Millennium Plan an ambitious blueprint outlining the company’s growth strategies for the 21st century. The Millennium Plan was a part of the company’s renewed emphasis on business focus and operational efficiencies. Additionally...
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...Detergent wars: Nirma, Wheel & Ghari HLL entered India in 1957 and was the undisputed leader in detergent space. Surf was the most selling detergent in India. However in 1980's Surf suffered huge losses at the hands of a new and small firm, Nirma Chemicals. Nirma was launched in 1969 and its primary focus was to create a good, branded product at affordable prices. The product was priced far lower than the market leader - Surf. Nirma caught the attention of the middle-class and lower middle class customers and had such great sales that it evicted HUL's Surf from the No. 1 position in 1985. HLL then had a look at the situation and found that there was a large market segmentation in detergent space and then came up with lower priced Wheel (green) and Rin (blue) detergent powders targeted at different market segments. This segmentation helped HLL regain part of its lost market. This post deals with price wars which are becoming an essential part of business. But a cut in price is the last resort in a price war. We will discuss more on various tactics to fight a price war. I will primarily focus on price wars in the detergent space, will also chip in with more examples as and when suitable. Before i delve into more theories and strategies, lets have a look at some stats and series of events: The detergent market in India can be divided into premium (Surf, Ariel), mid-price (Rin, Henko, Tide) and popular segments (Ghari, Wheel, Nirma, Mr. White). They account for 15%...
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...SOAP INDUSTRY: DOVE (ANALYSIS) SOAP INDUSTRY ANALYSIS ABSTRACT The origins of personal cleanliness date back to prehistoric times. Since water is essential for life, the earliest people lived near water and knew something about its cleansing properties - at least that it rinsed mud off their hands. A soap-like material found in clay cylinders during the excavation of ancient Babylon is evidence that soap making was known as early as 2800 B.C. Inscriptions on the cylinders say that fats were boiled with ashes, which is a method of making soap, but do not refer to the purpose of the "soap." Such materials were later used as hair styling aids. Soap got its name, according to an ancient Roman legend, from Mount Sapo, where animals were sacrificed. Rain washed a mixture of melted animal fat, or tallow, and wood ashes down into the clay soil along the Tiber River. Women found that this clay mixture made their wash cleaner with much less effort. Some of the early instances of commercial manufacturing of soap are: In Britain references began to appear in the literature from about 1000AD, and in 1192 the monk Richard of Devizes referred to the number of soap makers in Bristol and the unpleasant smells which their activities produced A century later soap making was reported in Coventry. Other early centers of production included York and Hull. In London a 15th century "sopehouse" was reported in Bishopsgate, with other sites at Cheapside, where there existed...
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...To Know And Study The Trends Of Consumer Buying Behavior Toward The Cosmetic Products Of HUL, P&G And Nirma Company’s Brands. 2013 PRITHVI NATH THAKUR St. KABIR INSTITUTE OF PROFESSIONAL STUDIED 12/31/2013 EXECUTIVE SUMMERY The Project and research works are integral part of academic curriculum. During the process I get an opportunity to study the market scenario and set the practical aspect of theory which makes the concept clear. This is an outcome of the research work and study of market that undertaken on the subject related to “To Know And Study The Trends Of Consumer Buying Behavior Toward The Cosmetic Products Of HUL, P&G And Nirma Company’s Brands.” of the cosmetic items. The study and research is also to understand the value of sales and advertisement promotion so also the perception of cosmetic users. DECLARATION I Prithvi Nath Thakur student of PGDM at St. Kabir Institute of Professional Studies Ahmedabad, 2012-14 batch, hereby declare that the Project Report Titled “To Know And Study The Trends Of Consumer Buying Behavior Toward The Cosmetic Products Of HUL, P&G And Nirma Company’s Brands.” is the outcome of my work and same has not submitted by any institute for the award of any degree or any professional diploma. ACKNOWLEDGEMENT I owe a great many thanks to a great people, ...
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...Name Subject Professor : : : Mansukh Patel Strategic Business Marketing Mr. M Natrajan Paper: Market Demand / Potential – LUX Soap PRODUCT PROFILE • • • • • LUX is a global brand developed by Unilever. The range of products includes beauty soaps, shower gels, bath additives, hair shampoos and conditioners. LUX started as “Sunlight Flakes” laundry soap in 1899. In 1924, it became the first mass market toilet soap in the world. It is noted as a brand that pioneered female celebrity endorsements. As of 2005, Lux revenue is at 1.0 billion euros, with market shares spread out to more than 100 countries across the globe. Today, Lux is the market leader in several countries including Brazil, India, Thailand and South Africa. For years, LUX has been one of the India top soaps that offer a way to gain smooth and fair looking skin without worrying too much on how old the user is. LUX soap came from one of the biggest corporation in the India today, Unilever. LUX is a personal care brand owned by Unilever. LUX is primarily made from synthetic surfactants, as well as some vegetable oil based soap ingredients, such as sodium palm kernelate. LUX is formulated to be pH neutral, with a pH that is usually between 6.5 and 7.5. As paper title specify, market research is done for the LUX soap to estimate the current demand and market potential. Market research is the process through which one can indentifies the basic problems area relating the product demand, its potential and as conclusion...
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...Impact of Visual Communication in Rural Markets Submitted By: Name: Sujit Mishra Course: PGDM- Marketing Roll No: 056 Under the guidance of: Dr. Ramkishen. Y Faculty in Marketing K J SIMSR K J Somaiya Institute of Management Studies & Research IV Trimester, 2012 Abstract: Rural marketing involves addressing around 700 million potential consumers, over 40 per cent of the Indian middle-class, and about half the country's disposable income. According to a NCAER study the consuming class households in rural equals the number in urban and awareness The recent NCAER publication "The Great Indian Middle Class" further reveals that the Indian middle class consisted on 10.7 million households or 57 million individuals of which 36 per cent lived in rural areas. Companies are always looking for tools and ways to increase the brand visibility and communication. Brand communication to the consumers is always an important marketing goal of marketers. In doing so, they spend a lot through their marketing services firm, which provides the advertising and communication services to the client firms. Promotion of brands in rural markets requires the special measures. Due to the social and backward condition the personal selling efforts have a challenging role to play in this regard. Going by some of the characteristics of the rural public, which are high brand loyalty, low income influenced by seasonal fluctuations, low...
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...Group 3: Himanshu Kamat (22) Hitesh Mahansaria (24) Sahil Gupta (88) Prachi Bansal (84) Kuntal Panja (106) Overview of HUL Distribution Network Sales Force Management Incentives Financial Analysis Maintaining Favorable trade relations Providing innovative incentives to retailers Organizing demand generation activities Logistic Support Evolution of Sales Force Salesman Registered Wholesaler A stock point for company’s products in that market Products manufactured over 40 factories decentralized across 2 million square mile of territory. The operation involves 2000 suppliers and associates. Distribution network consist of 4000 redistribution stockists 6.3 million retail outlets Reaching entire urban population and about 250 million rural consumers Factory Carrying and Forwarding Agent Distributor Urban Area Redistributi on Stockists Star Seller Rural Area Redistribut or Redistribution Stockists Whole seller Family Groceries Retailers Carry and Forward Agents Buffer stock points Resulted in cost saving in terms of direct transportation and reduced time lag delivery Improved customer service to RS Redistribution Stockists Provide distribution units to the company salesman Company Depot Helped in transshipment, bulk breaking, stock point to minimize stock out at the RS level Role by redistribution stockists Financing stock, warehousing facilities...
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