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Factors Impacting NIRMA Marketing

Dr.Mukunda S . Medar iPharm D

Marg i Ra jB .Pharm

ManishaB.Sc

Ba la j iB .Sc (N)

Matu in NessaB.Sc

INTRODUCTION

‘Digital Health’ represents the convergence of digital technologies (especially information and communication technologies and data analytics) with elements and decision making structures of the traditional care value chain1.

Global spending on healthcare services expected to rise by an average of 5.3 percent from 2014-20172.

Current Healthcare system is based on a Curative Care Model

Shifting towards Preventive Care Model

1.The definition is based on Arthur D. Little’s understanding of Digital Health and refers to the prevailing academic and business thinking, including: Frank (2000); Topol (2012; 2013); Mellodge and Vendetti, (2011)2.World Healthcare Outlook, Economist Intelligence Unit, August 14, 2013

Introduced in the low- income market

Initially, it was priced at Rs. 3.50 per kg, at a time when HLL’s surf was priced Rs. 15

First foray in Bangladesh – Commerce Overseas Limited

FACTORS IMPACTING NIRMA POSITIVELY

It bought the lateset technology for its manufacturing facilities at 6

places in india.

It consisted of about 400 distributors & over 2 million retail outlets across the country

Bought a captive production plants for raw materials. Durability is high in terms of soaking.

FACTORS IMPACTING NIRMA POSITIVELY

• Mastered the game of managing the geographical diversity of consumer’s preferences.• Nirma spent only 1.25 % of its turnover on advertising as compared to

normal 6-10%.• The advertisement messages were also very simple and focused on the

benefit of the product.• Many customers had deep psychological bonds with their soap brands.

FACTORS IMPACTING NIRMA POSITIVELY

Retail Transformation

Corporate transformation—the end-to-end reinvention of a business—is often seen as a last-ditch undertaking. Too many retailers, especially those with long track records of success, look to transformation only after their business models begin breaking down or when they are unable to compete. Declining sales, rising costs, disgruntled customers and employees, competitors of all kinds stealing market share, and the emergence of nontraditional business models threaten to overwhelm these companies. The big question is often whether they can survive long enough to reverse momentum and address the issues necessary to survive. The answer, of course, is often no—the bankruptcy graveyards are full of once-storied defunct retailers.

It all started to earn as side income, and at that stage, I had never imagined this kind of success

Karsanbhai Patel, CMD, Nirma Ltd.

The cycle of change in retail today is accelerating faster than ever, thanks to a host of increasingly nimble challengers. Grocery and mass-market retailers, especially, find their traditional turf under attack from all sides. Successful companies can’t afford to rest on their laurels. Branding and familiarity are formidable forces, but customers do switch over time—and sometimes rapidly—when offered a superior value proposition. Price, assortment, and convenience can still be powerful competitive criteria, but they are becoming progressively commoditized by the Internet. Service, quality, value, and experience are critical differentiators today—and they are being exploited by a host of deft competitors, both online and offline. These qualities require constant reinventing by grocers and mass-market retailers that want to stay relevant to their customer base, much less capture share from the chain across the street—or in the cloud. (See Exhibit 1.)

Regardless of segment or circumstance, retailers can benefit from considering an end-to-end change agenda. Those seeking the next phase of growth can use the transformation process to embrace new offerings, categories, formats, and channels, or to expand into new markets and territories.

Companies in fast-growing markets can stay ahead of the curve, making sure they have the capabilities they need to maintain customer satisfaction and build lasting relationships. Transformation can also offer companies in strong but trailing positions the opportunity to leapfrog to leadership.

Transformations must reinvent not only the in-store experience for consumers, but all the components that contribute to this experience, including store mix and format, people, products, infrastructure, IT, and supply chain, to name a few. There’s no question that creating an attractive, profitable, competitive omnichannel experience for consumers is one of the biggest challenges facing most companies today. So much so that even some online players have started building stores on street corners.

The initiatives that constitute a full transformation program can be divided into three categories: funding the journey, winning in the medium term, and building a sustainable operating model for the long term—especially the right team, organization, and culture. The near-term steps to raise cash need to be taken with their longer-term consequences in mind. Medium-term victories are the result of near-term decisions. Building the right team, organization, and culture begins on day one.

Dis·inter·medi·a·tion.

Distributors 400

Exclusive

NIRMA

8 locations Retailers (2 Million)

Customers (400 Million)

Whole Sellers

It all started to earn as side income, and at that stage, I had never imagined this kind of successKarsanbhai Patel, CMD, Nirma Ltd.

Consumer Products • Detergents – Nirma Washing Powder – Super Nirma Washing Powder – Nirma Popular Washing Powder – Nirma Detergent cake – Super Nirma Detergent cake – Nirma Popular Detergent cake • Soaps – Nirma Lime Fresh – Nirma Rose – Nirma Sandal • Scouring Products – Nirma clean dish wash bar – Nirma bartan bar • Edible Salt – Nirma shudh iodized salt

Industrial Products • LAB ( Linear Alkyl Benzene ) • AOS ( Alfa Olefin Sulphate ) • Sulphuric Acid • Glycerin • Soda Ash • Pure salt • Vacuum Evaporated Iodized Salt • SSP ( Single Super Phosphate ) • Sodium Silicate

Soap Industry World-wide, there are only four or five platforms – floral, beauty, health, freshness – which account for most of the soaps sold. Nirma produced high-fatty-matter soaps with the right scents, and priced them much lower than other brands. • Nirma Bath against Lifebuoy • Nirma Beauty Soap against Lux • Nima Rose against Breeze • Nima Lime against Jai Lime

Since the launch of Nirma detergent powder in 1969, the Nirma portfolio has expanded to include fabric care products, personal care products, food products, packaging and chemicals. This was primarily to cater to the changing business environment. The company has a significant presence in the detergent powders, cakes, toilet soaps as well as in the scouring bars category. However, the underlying philosophy remains consistent - to deliver value-for-money products to consumers.

In the fabric care category, Nirma has three products for the lower-end market - Nirma yellow washing powder, Nirma detergent cake targeted at lower income consumers and in the mid-priced segment, and the super Nirma washing powder, which successfully debunked the myth that high quality products had to be high-priced. The powder is 40% cheaper than its nearest competitor. The blue colored super Nirma detergent cake was introduced in 1990 to make consumers shift from the then available detergent brands. The Nirma clean bar was launched to enable users of unbranded detergent powders and cakes to switch to a value-for-money branded product.

Nirma's foray into the toilet soaps category was launched with Nirma Bath Soap, a carbolic soap which positioned itself against the largest selling carbolic soap brand, Lifebuoy, from the Hindustan Lever stable - at half the latter's price. The more up market Nirma beauty soap with four perfume variants, also became an instant success and is the third largest selling brand in the country, today.

Nirma lime fresh soap was launched as a mid-priced toilet soap without any advertising support. In the first month of its launch, seventeen million packs were sold, vindicating the company's belief that value-for-money products are what consumers are looking for. The product sells for half the price of its nearest comparable rival. Nima Rose and Nima Sandal are the other toilet soaps that are on offer in the mid-priced category.

There are many challenges for Nirma considering that the detergent market shrunk 9 percent in volume terms, and the toilet soap segment recorded a decline of 12 percent in value terms, in 2001. Hindustan Lever, Nirma s key competitor, is �also bettering Nirma at the price-competitive strategy for the more volumes game. To combat these challenges Nirma has

forayed into the foods category with the launch of Nirma Shudh Salt in 2002. Nirma Shudh is only the second

vacuum salt in the country.

However, Nirma Shudh Salt achieved a turnover of Rs.16 crore in 2001-02 as against Kunwar Ajay Sarees Dandi Namak, �which, launched later, has already become a Rs.100-crore

brand.In a truly path-breaking move in the prevalent fast-moving consumer goods climate, Nirma, in 2002, announced the

exclusive marketing and manufacturing arrangement by which Nirma was to bring Camay, one of the world s leading beauty �

soap brands, to the Indian consumer

FAILURE OF NIRMA SOAP• IT SUFFERED WITH THE INABILITY TO INNOVATE IN PRODUCT.• WHEN CUSTOMERS ARE LARGLY SHIFTING FROM ECONOMY BRANDS TO ASPIRATIONAL BRANDS NIRMA FAILED TO CAPITALIZE ON SHIFT.

Ventures into shampoo andtoothpaste were not as successful, but theedible salt‘Shudh’is another success story.