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Nirma

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Page 1: Nirma
Page 2: Nirma

Project Offered By :

Prof. Debashish Brahma

Project Done n Presented By:

Anup Hirawat roll no. 04

Vijay Kumar Popat roll no. 54

Suchanda Banerjee roll no. 51

Nayeem Khan roll no. 20

Page 3: Nirma

PAST RECORDS ABOUT NIRMA

Nirma is the Rs.17 billion Detergents, Soaps and Personal Care Products Brand, a market leader in the Indian detergent market and

second largest in bathing soaps... the brand NIRMA being one of the world's biggest in it's segment... a result of it's mission to provide 'Better Products, Better Value, Better Living'.

The man who altered the clothes-washing habits of the Karsanbhai Patel the chairman of the Ahmedabad-based Nirma Ltd. This chemist who manufactured detergents at home in Ahmedabad in 1969 has certainly come a long way. He worked from his backyard which developed into a soap factory, cycled to retail outlets and hawked his brand at one-fourth of the price of similar products then available. At Rs 6, Nirma, named after his daughter, was the cheapest detergent vying for attention on shop shelves. By the late 1980s, Nirma had become one of the world's largest-selling detergent powders. That he rewrote history and gave Hindustan Lever, the Indian subsidiary of the Anglo-Dutch foods and toiletries conglomerate Unilever, a huge headache is well-chronicled. Today he is proud owner of an Rs 2,500-crore Ahmedabad-based soaps and detergents major

It has been Patel's dream to make Nirma a synonym for quality. "Nirma is not merely a brand or a product, it is a dynamic phenomenon, a revolution, a philosophy," he once said. 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. Towards this end, he tried his hand at many brand extensions. From toothpaste to salt and matchsticks, they all nestled under the Nirma umbrella. Incorporated as a private limited company, Nirma was converted into a deemed public company and then to a public limited one in Nov.'93. Nirma is an over Rs. 17 billion brand with a leadership presence in Detergents, Soaps and Personal Care Products, offering employment to over 15,000 people. In fiscal 1997, the Nirma group restructured operations and merged four companies – Nilinta Chemicals, Nirma Detergents, Nirma Soaps and Detergents, and Shiva Soaps and Detergents – with its flagship Nirma Ltd. Products are marketed through a 100-per cent subsidiary, Nirma Consumer Care.

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Nirma has undertaken backward integration into manufacture of Industrial Products like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric Acid.

Today, Nirma sells over 800000 tones of detergent products annually, giving it a 35% share of the Indian market, which are the world’s second largest fabric wash products markets. This makes Nirma India's largest detergent marketer and one of the world's biggest detergent brands. The Company has acquired Kisan Industries Limited situated at Village Moraiya, Dist. Ahmedabad as a going concern, which was engaged in the business of manufacture of detergents, Single Super Phosphate, fertilizer and printing and packaging. The second stream of the 420000 tpa Soda Ash plant at village Kalatalav, Bhavnagar was commissioned in September 2000. The Company also set up a pure water plant to manufacture 2.80 lacs TPA Vacuum-salt in October 2000.Debottlenecking process which was made during 2001-02 by the company resulted in expansion of installed capacity of Soda Ash at Village Kalatalav, from 420000 TPA to 650000 TPA. The total cost of the project is approximately Rs.110 crores. This project is expected to be completed in September, 2002. The company issued Secured NCD aggregating Rs.360 crores in order to augment its working capital and also to bring-in cost effiency in funding cost

In detergents market Nirma and Hindustan Lever are close competitors with 38% market share each. Nirma leads the popular segment, while HLL leads the premium detergent powder segment. P&G and Henkel Spic are the other key competitors in the detergent market.

In toilet soaps, HLL has a dominating 63% market share. Nirma has also garnered a significant 22% market share in a short time. Other major players in the segment are Godrej Soaps and P&G.

DIRECTOR OF NIRMA : Mr. RAJENDRA D. SHAH

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Nirma Limited

BOARD OF DIRECTORS AS OF 2007-08 Dr. K. K. Patel, Chairman Shri Rakesh K. Patel, Vice Chairman Shri Shrenikbhai K. Lalbhai Shri Pankaj R. Patel Shri Rajendra D. Shah Shri A. P. Sarwan Shri Chinubhai R. Shah Shri Kaushikbhai N. Patel Shri Kalpesh A. Patel, Executive Director Shri Hiren K. Patel, Managing Director AUDITORS AS OF 2007-08 Hemanshu Shah & Co. Chartered Accountants Ahmedabad COMPANY SECRETARY AS OF 2007-08 Shri Paresh Sheth REGISTERED OFFICE AS OF 2007-08 Nirma House Ashram Road Ahmedabad - 380 009 REGISTRARS AND SHARE TRANSFER AGENT AS OF 2007-08 M/s. Sharepro Services (India) Pvt. Limited Mumbai - 400 099

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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 'Umbr

ella 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

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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

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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

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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 razor-sharp 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.

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Marketing Environment of the Product Social WELFARE AND SOCIAL SECURITY The Company strongly believes that its human capital should come to the work with fresh and healthy physicalcondition without any stress. Therefore the Company provides under welfare and social security scheme natural and accidental life insurance, medical insurance for employees and their family, gratuity interest subsidies for housing and vehicle. Manufacturing facilities of the Company are supported with canteen for providing hygienic food, and other modern facilities including crèches for female employees. ENVIRONMENT AND SAFETY: The quality policy framed by the Company attribute it to comply to environment, safety and social obligations. These obligations are complied with by means of adopting eco friendly and eco efficient process technologies. The Company has established well equipped R&D laboratory and quality control laboratory for in house monitoring. Regular environmental monitoring of ambient air, stack emissions, effluent discharge, noise etc. are being done. Efforts are made towards water resource conservation by development of rain water harvesting ponds, recycle and reuse of treated effluents, wherever possible thereby maintaining zero discharge etc. The Company is also implementing onsite as well as offsite emergency plan for effective management of an accident/ incident to minimize the loss of manpower, property both in and around plant facility. All plant locations are generally organising safety week once in a year. Gujarat Safety Council also rewards Company’s various units for accident free days. Soda Ash The performance of India's Rs.22-billion Soda Ash industry depends heavily on end user segments, such as glass and detergents. Driven by the high growth in the construction industry (key consumers of glass), Soda Ash demand in India is estimated to have registered a compounded annual growth rate (CAGR) of 4 to 5 per cent during the past five years. Indian Soda Ash prices will continue to be linked to international prices, which were depressed until 2004. However, due to growing demand and limited capacity additions, prices are picking up steadily. The Company is second largest producer of Soda Ash in India.

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Plants

Full range of Packaging facilities

13,500 TPA of packaging material 7,200 TPA of Poly Ethylene film

manufacturing 6,000 TPA Paper Wrapper printing 6,000 TPA Laminated Wrappers & Pouch

manufacturing 3,600 TPA of Stiffner Boards Poly Coating

and Slitting 14,000 TPA Craft Paper manufacturing 12,000 TPA Corrugated Box manufacturing

State of art production facilities

8 colour printing from Cerruti Spa, Italy 2 lines of 3 - Layer Extrusion Plant from

Reifenhauser, Germany Automatic Control from Prestech, U.K. and

Eltromet, Germany

Soaps ::...

Investment of Rs. 200 Crores

30,00,000 Soap pieces sold per day

Annual sales of Rs. 500 crore

20% market share

Second largest soap manufacturer in India

Four lines of 500 soaps per minute

Detergents ::...

50,00,000 pieces sold per day

38% market share

Largest Detergent manufacturer of India

Page 12: Nirma

Political & Legal

Your Company continues to commit good Corporate Governance vis-à-vis corporate practices by complying with various Standards prescribed by the Securities and Exchange Board of India vide Clause 49 of the Listing Agreement with the Stock Exchanges. Apart from mandatory requirements from Listing Agreement, the Company is also complying some of the non mandatory requirements to maintain high degree of Governance. A separate report on Corporate Governance along with a certificate from the Auditors and Management Discussion and Analysis are annexed as part of the Annual Report. During the year under review, the Company has incorporated Karnavati Holdings Inc. (KHI) in the state of Delaware, United States of America, on November 20, 2007 as Wholly Owned Subsidiary of the Company and signed the share purchase agreements with KHI. KHI incorporated Searles Valley Minerals Operations Acquisition Corporation and Searles Valley Minerals Acquisition Corporation in the state of Delaware, USA, merged with and into Searles Valley Minerals Operations Inc (SVMO) and Searles Valley Minerals Inc. (SVM) on 27th December 2007. Consequently, SVMO and SVM, the surviving corporations have become stepdown subsidiaries of the Company. In terms of the approval granted to the Company by Ministry of Corporate Affairs, Government of India vide its letter No. 47/495/2008-CL-III dated 5th August 2008, the Company has been exempted from complying with the provisions of sub section (1) of section 212 of the Companies Act, 1956, for the financial year under review. Further SVMO wholly owns four entities in U.S.A. namely Searles Domestic Water Company LLC, Searles Valley Residences LLC, Trona Railway Company LLC and NATI LLC, while NATI LLC has a 50 percent membership in Trona Export Terminals LLC in U.S.A.

Head Office of Nirma At Ahemdabad

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Reasearch & Development

The company has established a well equipped R & D Laboratory and quality control laboratory with number of sophisticated instruments for testing and analysis. In Soda Ash plant, in order to have process checks, required "ON-LINE" instruments / analysis has been installed and established process Laboratory and R & D Laboratory have been set up. Both the Laboratories are fully equipped with all required instruments. Solid, Liquid and Gaseous effluent monitoring and equipments are established in Laboratory and effluent prior to discharge is monitored on regular basis. A detailed technical study of mixing of clear liquor of effluents of Soda Ash with Solar Salt of Brine was carried out. For validation, the Company has engaged M/s. Sriram Institute, which has helped in achieving zero liquid effluents discharge status. At LAB plant, the Company has well-established R & D facilities with sophisticated instruments. The R & D activities have enabled the Company to produce LAB of better quality, which is meeting with the global requirements of LAB as per the international customers' requirements. The same has been achieved with the same set up of plant equipment and machinery with minor modification. The Development and absorption of new methods of analysis to improve product profile for customers resulted in strenghtening the Company's position in both local and global market.

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Current Marketing Environment of Buyers’ & Suppliers’ Bargaining Power

(A) MARKET PRICE DATA

Month & Year

BOMBAY STOCK EXCHANGE NATIONAL STOCK EXCHANGE High (Rs.) Low (Rs.) High(Rs) Low(Rs)

April 07 May07 June 07 July 07

August 07 September 07

October 07 November 07 December 07

January 08 February 08

March 08

165.70 224.00 203.00 188.90 170.80 179.90 167.95 255.50 277.00 274.90 218.25 185.00

140.00 155.10 157.00 157.00 152.00 160.00 148.15 143.00 220.85 165.00 171.00 143.00

166.80 227.47 203.00 189.00 183.00 190.00 189.00 265.00 276.00 272.00 215.25 185.00

140.00 157.00 160.00 166.10 151.00 151.05 148.25 141.05 220.05 170.00 160.00 135.00

(B) SHAREHOLDING PATTERN AS ON 31.3.2008

Category No. of shares held Parcentage of shareholders

1. 2. 3.

Indian Promoters’s holding Non- Promoters’ holding a.Mutual funds b.Banks,Financial institutions,Insurance companies. (Central/State Govt. Institutions / Non-Government Institutions) c. FIIs d. NRIs/OCBs e. Private Corporate Bodies f. Indian Public

12,28,15,920 15,09,148 70,107 6,83,305 77,191 1,56,99,784 1,82,86,822

77.17% 0.95% 0.04% 0.43% 0.05% 9.87% 11.49%

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TOTAL 15,91,42,282 100% (C) DISTRIBUTION OF SHAREHOLDING AS ON 31.03.2008

Category No. of shares held Parcentage of shareholders

1. 2. 3.

Indian Promoters’s holding Non- Promoters’ holding a.Mutual funds b.Banks,Financial institutions,Insurance companies. (Central/State Govt. Institutions / Non-Government Institutions) c. FIIs d. NRIs/OCBs e. Private Corporate Bodies f. Indian Public

12,28,15,920 15,09,148 70,107 6,83,305 77,191 1,56,99,784 1,82,86,822

77.17% 0.95% 0.04% 0.43% 0.05% 9.87% 11.49%

TOTAL 15,91,42,282 100% The above report was placed before the Board of Directors at its meeting held on 19th August 2008 and the

same was approved.

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Nirma losing froth in soaps, detergents biz

• Soaps and detergents company Nirma Ltd, which gave Hindustan Unilever Ltd’s (HUL) Surf a run for its money in the 1980s, is now battling a shrinking market share in its core business. The company’s profitability and stock price have been on the decline since April 2006.

• According to market research agency ACNielsen, Nirma had a 15.2% share of the detergents segment and an 8.2% of soaps (both in terms of value) in April last year. But by June this year, its market share had dipped to 13.5% in detergents and 6.74% in soaps.

• Nirma’s sole USP, value for money, is not enough to take on rivals, analysts say • The company’s share price also fell 24% during the period. • Nirma did not respond to a detailed questionnaire sent by Mint to it. • HUL, leader in the Rs8,000 crore detergents segment, commands a 38% share of the

market. • In the Rs6,000 crore soaps category, Godrej Consumer Products Ltd (GCPL) has

surged past Nirma with a market share of around 11%. • In the 15-month period between April 2006 and June 2007, Nirma’s market share

declined by 1.5 percentage points, while GCPL gained by 1.9 percentage points. • HUL and GCPL refused to comment on Nirma. GCPL, however, said its focus on

brand communication and product quality helped it grow in a fiercely competitive market. “We have, as a company, believed in the power of positive word of mouth from satisfied users of our products, which seems to be working. The more users try our products, the stronger the word of mouth,” says R.K. Sinha, chief operating officer, GCPL.

• In the year ended December, Nirma’s sales grew 4.3% year-on-year to Rs1,918.8 crore while its net profit fell 15.2% to Rs241.38 crore. In the quarter ended 30 June, sales grew to Rs609.1 crore against Rs525.5 crore in the same quarter last year, while the net profit fell 45% quarter-on-quarter to Rs41.1 crore.

• According to experts, Nirma suffers from the inability to innovate in the product categories it is present in and also tinker with its pricing. They say companies in the detergents and soaps categories, both multinationals as well as local players, have built their strategies around viability, affordability and visibility; Nirma’s focus, they add, has largely been on affordability.

• “With rising incomes, consumers are now shifting from economy brands to aspirational purchases and Nirma has failed to capitalize on this shift,” says Jagdeep Kapoor, chairman and managing director of Mumbai-based brand marketing consultancy firm Samsika Marketing Consultants Pvt. Ltd.

• Analysts say Nirma’s brand promotion efforts and pricing strategy have weakened over the past few quarters. “Nirma has been continuing with the same advertising for years and now; even its visibility is on the decline on TV channels, except for Doordarshan,” says an analyst with a Mumbai-based brokerage firm, who did not wish to be named because he has not met the firm’s officials in a long time. “They have not been meeting analysts,” he adds.

• The firm, the analyst says, has also not raised its prices for some time despite the increase in prices of LAB (linear alkyl benzene, a key ingredient used in

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manufacturing detergents) and palm oil (another key ingredient in the manufacture of soap).

• “Also, the rivals have products across all price points to mitigate the input cost effect, while Nirma is available in only one plank—value for money,” he adds.

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Direct / Indirect Competition

From the above chart we can easily observe that Nirma holds approx. 26% of total market as related to its competitors. As we can also observe that Hul covers most of the market share that’s 39%. We can also see that others also capture good market share that’s 25% it includes domesic detergent like Ghadi and all.

It is time for the two major detergent manufacturers - Hindustan Lever (HLL) and Henkel Spic - to lather up a froth by aggressively relaunching their mid-priced (Rs. 42 - Rs.45) detergent powder market in India.

While HLL relaunched its Rin Shakti, Henkel Spic followed suit with Mr. White. Both products have an improved product proposition with new ingredients and come in redesigned packs.

The Rs.5,700 crore detergent market is segmented into two product categories - powder and cake. Within this, the detergent powder market is further sub divided into four categories - concentrates/compact (variants of Surf, Henko, Ariel), premium (variants of Surf, Henko, Ariel), mass premium/mid price (Rin, Mr.White, Tide and regional brands) and popular (Nirma, Wheel, Chek).

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Value-wise, the premium segment contributes a major share while the popular brands contributes the volumes. However the detergents market in a general has not grown in the last couple of years, hence the relaunches

Says Henkel Spic's managing director, Satish Kumar, "The relaunch is not only to infuse some excitement into the market but also to offer better product to the consumers."

The first to move was HLL. Early in January, this year, the company relaunched its Rin Shakti powder as the New Rin Powder. The newness is the detergent's property to dissolve fully in the water unlike with the earlier product and other competing brands. This, claims the manufacturer, results in lower usage and better cleaning of the fabric - a technology patented by Unilever.

According to HLL, other detergents leave behind a mud-like residue, while Rin's new innovation allows 100 per cent dissolution and enhanceing whiteness. HLL had earlier incorporated this in its detergent bar variant, Rin Supreme. In addition, the New Rin Powder also has enhanced fragrance. For HLL the Rin brand - powder and cake - brings in a whopping Rs.700 crore revenue per annum.

On the other hand, Henkel Spic's Kumar claims that Mr. White is the only eco-friendly detergent in its segment which also produces dazzling whiteness and comes with a fresh fragrance. "We have strengthened the ingredients in the detergents. Further, the powder comes in the new international gusset pack to portray the premium quality and strong shelf visibility."

According to him, the Rs.50 crore revenue Mr.White is the number two brand in the segment with a market share of 14 per cent, which with the relaunch is expected to go up to 20 per cent. The brand has good presence in Andhra Pradesh, Kerala and Tamil Nadu.

Predictably consumers of both brands have to suffer a slight price hike. Defends Kumar, "The price hike of Mr. White is just one rupee to take care of the increase in input costs." According to him, for the past two years there was no price increase though the costs of inputs had gone up.

While Mr.White is available for Rs.42 per kg, the New Rin Powder is available at an introductory price of Rs.42/kg as against the normal price of Rs.45.

HLL's television commercial for the New Rin Powder talks about the consumer's desire to sport sparkling white clothes. On the other hand Henkel Spic's commercial uses a top-down approach. The commercial features a scientist's family as users of Mr.White feeling happy with its dirt removing properties.

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Says Kumar, "Research shows that people generally believe in the voices of authority and experience like scientists, doctors, teachers." The company does not forsee any brand cannibalisation between Mr.White and its Rs 100-crore Henko, with the former eating into Henko's market share.

"The respective brand positioning (Henko, the stain remover, and Mr.White, the dazzling whiteness detergent) and target markets segments are different," remarks Kumar.

Target Customers of the Product

The target customer of the product are middle class n upper middle class because though Nirma is quite in a good reach to rural people so there main target is to sustain that rural people with creating new customers in the middle class n upper middle class. Though its quite difficult for nirma to create because its competitors r in wide range then nirma but nirma have his name which is quite familiar to each n every people or detergent user in the country.

Consumer Wants / Needs /Demands

Better quality products. Cheaper in price. Variety in detergent for expensive clothes. Easily availability Attractive packaging Edge over other brand Eco-friendly / Non pollutant

Why Consumer Buy This Product.?

Cheaper in price than others. The new improvement in the product will attract consumer very much in low price.

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Nirma Should Work On :

Introduction of sachet Introduction of Family jar Introduction of Liquid detergent for woolen clothes Improvement in Research n Development group Improvement in Distributing patterns Introduction of attractive packet Offer better commission to the seller for selling of product Better advertisement Enhance the mode of advertisement like through radio, free distribution, Feedback

Demonstration of new packet

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