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A Project Report On Deterjent & Satisfaction Survey of Nirma LTD
A Project Report On Deterjent & Satisfaction Survey of Nirma LTD
CERTIFICATE
This is to certify that ANKITA GHOSH student of second semester, Master of Business administration (MBA) in the year 2008 - 2010 has completed the project report work entitled NIRMA based on syllabus and has submitted a satisfactory account of his work in this report.
ACKNOWLEDGEMENT
The research on A Project Report on Deterjent & Satisfaction Survey of Nirma Ltd. has been given to me as part of the
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A project on detergent & satisfaction Survey of Nirma curriculum in the completion of 2-Years Master of business Administration. I have tried my best to present this information as clearly as possible using basic terms that I hope will be comprehended by the widest spectrum of researchers, analysts and students for further studies. I have completed this project under the able guidance and supervision of Miss Ruchi Tiwari and my project guide. I will be failed in my duty if I do not acknowledge the esteemed scholarly guidance, assistance and knowledge I have received from them towards fruitful and timely completion of this work. Mere acknowledgement may not redeem the debt I owe to my parents for their direct/indirect support during the entire course of this project.
We also thanks NIRMA DISTIBUTER & DELERS, INDORE who believed in us and by providing ALL valuable information and data that helped us in understanding the problem areas of their organization and hence developing the application as per their requirements.
I also thankful to my friend Arvind Yadav who helped me a lot in the completion of this project. FROMANKITA GHOSH
PREFACE
If we can compare marketing to a long train with a multiple compartment then every bogies represent different aspect of
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A project on detergent & satisfaction Survey of Nirma marketing. Marketing strategy formulation depends upon the every aspect of related terms and marketing research plays vital roles to connect each compartment to form a cohesive functional unit. The Dtergent industry is at the center of Indias new global dynamic. It plays major roles in retaining industry growth over 16.0 % per annum. The motivation behind the project was to gain clear understanding about marketing research. Through this project I have tried to understand the complexities involved in gathering of data for drawing inferences .The final objective is to produce a result that is accurate, useful, and free from bias and helps in the successful completion of my Master of business Administration course. The project has been presented in a simple format
INDEX
1. Executive Summary
2.
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DETERGENTA detergent (as a noun) is a material intended to assist cleaning. The term is sometimes used to differentiate between soap and other surfactants used for cleaning. As an adjective pertaining to a substance, it (or "detersive") means "cleaning" or "having cleaning properties"; "detergency" indicates presence or degree of cleaning property.
Components
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Surfactants to 'cut' (Emulsify) grease and to wet surfaces Abrasive to scour Substances to modify pH or to affect performance or stability of other ingredients, acids for descaling or caustics to break down organic compounds Water softeners to counteract the effect of "hardness" ions on other ingredients oxidants (oxidizers) for bleaching, disinfection, and breaking down organic compounds Non-surfactant materials that keep dirt in suspension Enzymes to digest proteins, fats, or carbohydrates in stains or to modify fabric feel Ingredients that modify the foaming properties of the cleaning surfactants, to either stabilize or counteract foam
Ingredients to increase or decrease the viscosity of the solution, or to keep other ingredients in solution, in a detergent supplied as a water solution or gel
Ingredients that affect aesthetic properties of the item to be cleaned, or of the detergent itself before or during use, such as optical brighteners, fabric softeners, colors, perfumes, etc.
Ingredients such as corrosion inhibitors to counteract damage to equipment with which the detergent is used Ingredients to reduce harm or produce benefits to skin, when the detergent is used by bare hand on inanimate objects or used to clean skin Preservatives to prevent spoilage of other ingredients Sometimes materials more complicated than mere mixtures of compounds are said to be detergent. For instance, certain foods such as celery are said to be detergent or detersive to teeth.
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Types There are several factors that dictate what compositions of detergent should be used, including the material to be cleaned, the apparatus to be used, and tolerance for and type of dirt. For instance, all of the following are used to clean glass. The sheer range of different detergents that can be used demonstrates the importance of context in the selection of an appropriate glass-cleaning agent:
a chromic acid solutionto get glass very clean for certain precisiondemanding purposes such as analytical chemistry a high-foaming mixture of surfactants with low skin irritationfor handwashing of dishware in a sink or dishpan any of various non-foaming compositionsfor dishware in a dishwashing machine
an ammonia-containing solutionfor cleaning windows with no additional dilution and no rinsing ethanol or methanol in windshield washer fluidused for a vehicle in motion, with no additional dilution
glass contact lens cleaning solutions, which must clean and disinfect without leaving any eye-harming material that would not be easily rinsed Terminology
Sometimes the word detergent is used to distinguish a cleaning agent from soap. During the early development of non-soap surfactants as commercial cleaning products, the term syndet, short for synthetic detergent was promoted to indicate the distinction. The term never became popular and is incorrect, because most soap is itself synthesized (from glycerides). The term soapless soap also saw a brief vogue. There is no accurate term for detergents not made of soap other than soapless detergent or non-soap detergent.
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HISTORY OF DETERGENTThe earliest detergent substance was undoubtedly water; after that, oils, abrasives such as wet sand, and wet clay. The oldest known detergent for wool-washing is stale (putrescent) urine. For the history of soap, see the entry thereon. Other detergent surfactants came from saponinsand ox bile. The detergent effects of certain synthetic surfactants were noted in 1913 by A. Reychler, a Belgian chemist. The first commercially available detergent taking advantage of those observations was Nekal, sold in Germany in 1917, to alleviate World War I soap shortages. Detergents were mainly
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THERE'S an interesting way of putting rural India into perspective. If India's population, as per the 1998 estimates of the United Nations Population Division, is 982,223,000, then rural India, taken as 73.3% of
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NIRMA
About the Company
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
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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. The share capital of the company is Rs.33.9 crore and the total shares outstanding amount to 3.39 crore. The face value per share is Rs.10. The stock is currently trading at Rs. 418, as on May 28, 2001. The market capitalization of the company is Rs.1415.85 crore. The free float is 18% and the promoters hold 72% stake in the company.
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ANNEXURE Board of Directors Chairman & Managing Director: Executive Director: Director: Director: Director: Director: Director: Director: Additional Director: Additional Director: Karsanbhai K Patel Kalpesh A Patel Shrenikbhai K Lalbhai Manubhai R Shroff Rajendra D Shah Atulya Prasad Sarwan Rakesh K Patel Hiren K Patel Kaushikbhai N Patel Chinubhai R Shah
Company name Nirma Ltd Smithkline Beecham Consumer Healthcare Ltd Pidilite Industries Ltd
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Sales
% Operating % PAT yoy profit yoy 1287.9 45 690.9 512.3 20 324.6 254.2 13 135.4
% yoy 5 16 9
7.25 (192)
2274.9 (2)
Marico Industries Ltd 1630.83 (5) 171.6 DETERGENT COMPANYS IN INDIA & HIS SALE
Performance of segment
Period ended Sales value (Rs mn) Detergents Glycerine Linear alkyl benzene Salt
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1,565.3 +105.61%
134.1 +107.59%
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Nirma is a customer-focused company committed to consistently offer better quality products and services that maximise value to the customer. This customer-centric philosophy has been well emphasised at Nirma through: Continuously exploring & developing new products & processes. Laying emphasis on cost effectiveness. Maintaining effective Quality Management System. Complying with safety, environment and social obligations. Imparting training to all involved on a continuous basis. Teamwork and active participation all around.
Demonstrating belongingness and exemplary behaviour towards organisation, its goals and objectives.
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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 '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. Detergents Nirma dominates the popular detergent segment with brands like Nirma Popular powder, Nirma Detergent powder, Nirma bar, etc. Super Nirma
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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.
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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
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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 multicolour 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.
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Nima Bartan Bar was launched in Q1 - 2000, gives an outstanding performance is Nirma's foray into the scourer's market. The slogan "Darpan Hai Ya Bartan" in the product's TV commercial has helped immensely in conveying the message of "Bartan Bar's cleaning efficiency very quickly across all segments. Our TV commercial supports our positioning of Nima Bartan Bar as the one giving superior quality cleanliness and making the utensils shiny and sparkling clean. Nima Bartan Bar is available in a 400 gram packing.
Nirma Clean was launched in Q2 - 2000 and is available in a 300 gram bar packing. The "Chak Chaka Chak" television commercial of 'Nirma Clean', showing a whole set of spotless, clean vessels in a kitchen sparkling with starlight, delineates the high cleaning quality of this scouring cake. It is targeted at the low end of the market. 'Clean' is expected to trigger conversion from the unbranded detergent powders and cakes. Nirma expects the scourers market to undergo dynamism with its introduction of two scourer cakes. Bathing Soaps Nirma Bath Soap (Carbolic): Toilet soap market was dominated by few MNC's who could monopolistically drive the prices. The growth of toilet soap market was tremendous in 90's and was expected to increase further. Nirma's brand equity in detergent market was very strong and was unanimously associated with value for money products. We saw no reason why cannot this be extended to the personal care market. Nirma ventured into this market with Nirma Bath a carbolic soap to counter the largest selling soap from a MNC stable. The carbolic soap segment though a declining market saw a sudden burst of activity. Nirma Bath started gaining
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to copy the concept and the commercial but were not able to match the success of the brand. As it is said you cannot fool consumers when it comes to quality Nirma Premium Soap: For the first time in the history of FMCG there was an attempt to extend the value for money proposition to the premium segment. The concept was innovated by none other than Nirma. Nirma launched Nirma Premium Soap during 1996 in the premium soap category with 80% TFM, mild fragrance, three variants and a touch of class in its advertising. The brand targeted to match the changing Nirma consumer's profile in terms of aspiration, quality consciousness and image perception. The brand has started picking up volumes in the premium soap market which is characterized by large number of brands and cut throat competition. Nirma Premium has been able to differentiate itself in this cluttered market its unique packaging and exclusive advertisement.
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Nima Rose: The remarkable and phenomenal market response received by Nima Rose soap within just two months of its launch has once again proved the merits of Nirma's commitment towards its consumers. Nima Rose soap has got an exceptionally fine perfume of rose that lingers around your body for a long time even after you bath. Due to high TFM (Totally Fatty Matter) content, it provides one of the nicest baths. This brand has already carved niche in its particular segment by achieving leadership position just within tow months of its launch.
Nima Lime, the first product in the Nima range of products has a very high TFM content and was introduced in Q2 - ' 98 when the astounding success of Nirma Lime Fresh Soap prompted competition to launch lime variants in the same price segments. Nirma is committed to the concept of umbrella branding. We have reaped benefits of this strategy right from our inception till date. In the past, we have faced umpteen numbers of situations where the competition introduces special campaigns to draw away the consumer's attention from our core brands like Nirma Detergent Powder, Super Nirma Detergent Cake, Nirma Beauty Soap, Nirma Lime Fresh Soap, etc. The purpose was to lure away consumer attention from Nirma Lime Fresh Soap by temporarily modifying the product. We, at this
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Nirma Herbalina: Nirma has invariably identified the nerve of the market and answered it at the proper time. We addressed the ayurvedic and medicated soap segment with Nirma Herbalina. Launched in Q3 - 2000 with a high TFM content, 'Herbalina' is Nirma's latest introduction in the range of toilet soaps. The natural commodities that are shown on the wrapper blend very well with the green colour of the eye-catching pack. Available in a 100 gram packing size, Nirma Herbalina is the 'Natural flow of freshness'. It is Nirma's yet another impression of 'Better Products,
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OTHER PRODUCTS: 1. Hair care a. Nirma Beauty Shampoo b. Nirma Shikakai 2. Toothpaste a. Nirma Toothpaste 3. Iodized Nirma Free Flow Salt a. Industrial chemicals
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PRICE
Ivory tower theories are rethinking their business basics-thanks to Karsanbhai K.Patel. Taking on the might of a multinational, his-priced detergent Nirma captured a majority market share arresting the sales and growth of a consumer giants up market brand. Among the greatest success stories in the annals of marketing management in India is that of a low-priced detergent of reasonably good quality which, in the course of a mere decade, put the skids on a product that was considered the pride of a powerful multi-national. The story of Nirma has become a classic as a marketing case-study. And the story of its progenitor is as genuine and romantic a tale of rags-to-riches as one could hope to find anywhere. For harried housewives, struggling to balance their monthly budgets, Nirma came as a boom. It was much cheaper than Surf, which had already gone well out of their reach; and it washed clothes nearly as well. Its cleansing power was far superior to that of the slabs of cheap washing soaps that had been their sole alternative until then. By the early 1980s the burgeoning sales of Nirma reached a rate of growth that was twice or thrice
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18.00
18.00
9.00
Nirma Washing Po
9.00
Even the second product that Karsanbhai introduced-a low-priced toilet soap, which he thoroughly test marketed in Gujarat before going national with it in 1990-hs been faring well. Nirma toilet soap retails at a mere Rs.2/- with the shopkeeper allowed to retain 25 paisa behind each cake sold. The Nirma name itself was a guarantee of quality for the consumer smiles the businessman. It found ready acceptance. Today, Nirma's toilet soap products are priced in the range of Rs 6-9. Nirma Lime Fresh, for instance, commands a price of Rs 8 for 75 grams, while Nirma Premium is priced at Rs 9. Nirma Bath, a popular soap, is priced at Rs 6. In comparison to Nirma's price range, HLL's toilet soap brands are priced at a slight premium. LifeBuoy is priced at Rs 14, and LifeBuoy Gold at Rs 9. The price of Rexona is Rs 9.50, while that of Liril, which competes with Nirma Lime Fresh, is Rs 13.
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Thus it is a well known fact that Nirmas best Unique Selling Proposition is Price The result of there cost effective product offering is that though the industry has been growing at the rate of 15 per cent annually, Nirmas growth has been at least 30-35 per cent a year for the last few years. Nirma has been successful in keeping its prices at such affordable levels primarily due to their strategy of backward integration projects. These projects had been undertaken with a strategy to become the lowest cost detergent manufacturer in the world. Self sufficiency in key raw materials will give protection against commodity cycles besides yielding substantial savings in raw material cost. The company estimates a total cost saving of 25% in material and handling costs due to the backward integration projects. The LAB plant has yielded about 12% cost savings and the company expects a similar cost saving of about 12-15% once the soda ash plant stabilizes. Overall the backward integration has yielded a cost saving of Rs0.8-1bn last year. Post completion of backward integration the company now plans to focus on building large volumes and gain from economies of scale. Till 1985 the Nirmaingredients were simply mixed by hand thus requiring neither machinery nor capital investment. Due to the scale of his product and the simple non-mechanized production process, Nirmagained a number of tax and excise benefits for not using electricity. Since Nirmawas a small-scale local venture, they did not have to pay excise duties that were levied on multinationals. Another area where Nirmasaved millions was in labor costs. Being a cottage industry Nirmawas not compelled to abide by minimum wage rules. To maintain low costs Karsanbhai used contract workers who were paid Rs.
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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
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DISTRIBUTION In its incipient days Karsanbhai Patels 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 arms 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 products 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 Karsanbhaiwas
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A project on detergent & satisfaction Survey of Nirma Company Consumer SemiWholesaler Retailer manufacturing unit
Wholesaler Consolidator
Soda Ash ::... Investment of Rs. 1,140 crores Capacity 650,000 TPA 770 m3/hr capacity Sea Water RODM plant 40 MW Captive cogeneration plant 10,000 MT solid handling
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Packaging ::...
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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
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Detergents ::... 50,00,000 pieces sold per day 38% market share Largest Detergent manufacturer of India
Edible Salt ::... Asias largest salt works Spread over 30,000 acres Edible salt capacity of 288,000 tpa Edible vacuum evaporated salt plant with
Technology from akzo nobel, netherlands Tripple effect monel cladded evaporator
Fluidized bed dryer Human contact free process from water to packaging
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Others ::... AOS ( Alfa Olefin Sulfonate ) Sulfuric Acid Glycerin SSP ( Single Super Phosphate )
Detergents ::... 50,00,000 pieces sold per day 38% market share Largest Detergent manufacturer of India
Edible Salt ::... Asias largest salt works Spread over 30,000 acres Edible salt capacity of 288,000 tpa Edible vacuum evaporated salt plant with
Technology from akzo nobel, netherlands Tripple effect monel cladded evaporator
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Others ::... AOS ( Alfa Olefin Sulfonate ) Sulfuric Acid Glycerin SSP ( Single Super Phosphate )
Chenal partnerNirma Limited markets its products through its fully owned 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.
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Reach--Nirma Limited markets its products through its fully owned 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 :
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 :
Wider Reach Speedy Market Intelligence Competitive edge & Better focus Complementing Principal 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
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Profit & Loss account for the year ended 31 st March 2006
Rs in crores 2005-2006 Income Expenditure Profit before depreciation & Tax Profit before Tax Net profit 1949.80 1449.36 500.44 344.02 241.38 2004-2005 1834.90 1325.38 509.52 352.81 284.65
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SUGGESTIONS
NIRMA is best detergent company in india. Its product quality is also very good. But compare to other company nirmas marketing is lower then other. If Nirma improve his marketing quality. So he improve his sale in Indian market. Because jo dikta hai wo bikta hai. Doing market survey. And justify the costumer. Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer.
Should put in more efforts to promote the Nirma product. Improve themarketing strategy.
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Bibliography:
www.google.com
www.nirma.com
Magazines(india today)
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Being an esteem customer of Nirma Limited you are requested to take out a few minutes and fill the following questionnaire. Q.1 DO YOU USE DETERGENT ?
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