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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.

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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.

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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.

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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.

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Problem faced

Low financial support.

Staff strength was very low.

Faced stiff market competition as market was fully

dominated by HLL .

8%8%

15%

65%

4%

MARKET SHARE ONTOILET SOAP(1999-00)

OTHERS

GODREJ

NIRMA

HLL

WIPRO

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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.

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Alternative solution ( by HLL )

Gave importance to product innovation and processinnovation.

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.

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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.

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Weakness

Low cost detergent powder caused many people feel

ashamed to use Nirma.

Conflict of NIRMA and NIMA.

Sustainibility in premium segment.

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Opportunities

Diversify to other consumer product like (liquid hand

wash, bleaching powder).

Export to Foreign countries.

Increasing Indian population.

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Threats

From international market.

NIRMA continuous focus on mass production ,made aproblem to them .

Broad attack from HUL and P&G.

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5 forces model

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BCG Matrix

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Recommendations

Nirma should focus on premium segment.

Concentrate on International Market.

Force more sales in rural market.