History of detergents

First companies to begin manufacturing detergent in India was a local private sector firm, named Swastik and HLL.

Swastik produced a powder called Det while HLL test marketed Surf, a blue powder.
Det, a white powder was successful in eastern India.

Facts and History ( Nirma )

It

was launched in 1969 by Karsanbhai Patel

Named after his daughter Nirupama

The

company focuses on the customer

Priority

of the company is better product, better value, and better living.

Cont..

2000 retail outlets and with over 200 large and small soap manufacturers Nirma was inferior to Surf and other premium powders on all characteristic normally measured. Yet sales of Nirma were higher. Indian mentality affected as people were concerned about price.

Facts and history ( HLL )

HLL came into the market in 1960 The company was launched in 1933 I Mumbai.

Founded by Harish Manwadi and Nitin Paranje.

Turnover of 25206 crore. Have 6.4 million retail outlets.

Problem faced

Low financial support. Staff strength was very low. Faced stiff market competition as market was fully dominated by HLL .
MARKET SHARE ON TOILET SOAP(1999-00)
4% 8% 8% 15% 65% OTHERS GODREJ NIRMA HLL WIPRO

Alternative solutions ( by Nirma )

Sold at half price Product availability in different size. They adopted backward integration strategy. It gave importance to modernization ,up gradation, expansion of product facility.

Alternative solution ( by HLL )

Gave importance to product innovation and process innovation. Modified business model to target rural customers.

Implemented IT enabled system for managing supply and distribution.

Innovative methods like Indirect coverage, operation harvest, cinema van operations used.

Strengths ( Nirma )

Ability to provide product at low cost without compromising on quality. Direct distribution channels Offer product to both economy and premium segments. The brand name NIRMA ,recall a low cost detergent powder.

Weakness

Low cost detergent powder caused many people feel ashamed to use Nirma. Conflict of NIRMA and NIMA.

Sustainibility in premium segment.

Opportunities

Diversify to other consumer product like (liquid hand wash, bleaching powder). Export to Foreign countries. Increasing Indian population.

Threats

From international market.

NIRMA continuous focus on mass production ,made a problem to them . Broad attack from HUL and P&G.

5 forces model

BCG Matrix

Recommendations

Nirma should focus on premium segment. Concentrate on International Market. Force more sales in rural market.