6. RELAUNCHING LIFEBUOY IN 2002 LIFEBUOY WAS RELAUNCHED. WAS A MILD SOAP WITH A FLORAL SCENT. TARGET – FROM MALE CONCEPT TO ENTIRE FAMILY, BENEFICIAL FOR HEALTH CONCEPT. SIZE DECREASED FROM 150gms to 125gms AND PRICE INCREASED FROM 8.50 TO 9. MARKET SHARE – 18% IN 2002.
7. RURAL MARKETING HLL FOCUSED ON RURAL MARKET 70% OF ITS SALES. TWO MAIN PROBLEMS IN RURAL MARKETING :- AVOIDING SOAP IF HANDS DID NOT APPEARS DIRTY. IN VILLAGES NO ACCESS TO MASS MEDIA SUCH AS TV AND RADIO.
8. RURAL MARKETING AND PROMOTION HLL HIRED TWO-PERSON TEAMS TO GO INTO VILLAGE SCHOOLS AND TEACH YOUNGSTERS BETWEEN AGES OF 5 AND 13 ABOUT INVISIBLE GERMS. LATTER PARENTS AND VILLAGE ELDERS WERE APPROACHED. IN 2002, RURAL CONTACT PROGRAMME. LAUNCHED “LIFEBUOY SWASTHYA CHETANA PROGRAMME” MEANT “HEALTH AWAKENING”.
10. RURAL MARKETING (CONTD.) In 2003, HLL, MAKING LIFEBUOY AVAILABLE AT BARGAIN PRICE OF RS. 2 IN RURAL MARKETAT RETAIL LEVEL. IN RURAL MARKET IS EXTERMELY PRICE SENSITIVE. 4 A’S OF RURAL MARKETING :- AVAILABILITY AFFORDABILITY AWARENESS ACCEPTABILITY
11. NIRMA –RURAL MARKETING Nirma is one of the few names – that is instantly recognized as a true Indian brand Nirma has always practiced ‘VALUE FOR MONEY’ . Nirma literally captured the market share by offering value-based marketing mix of four P’s ,i.e. a Perfect match of product, price, place and promotion
12. INTRODUCTION NIRMA was started in the year 1969 by KarsanbhaiPatel,inAhmedabad in Gujrat . Chemist by profession named NIRMA, after his daughter NIRUPAMA Successful journey began with sale of 15-20 packets of nirma washing powder a day which was YELLOW in colour Lower in quality than surf but far more effective than traditional slab of soap
13. Strategies followed for success Stockist made responsible for all transportation & delivery cost who were mainly relatives & family members Distribution dependent on prepayment for stocks Came up with ads in the late 1970s with catchy jingles and stockist were responsible for 50 % funding of promotional expenditure His daughter name attached to company gave distinctive and personal aspect that helped nirma stand out from others
14. KEY DIFFERENCES OF NIRMA & HLL Price Ingredients Soda ash –main raw material abundant in gijarat Focused on tier 4 i.e. 4 billion people who live mostly in developing countries
16. NIRMA-FINALLY WON THE WAR OF BUBBLES Regional product bring permanent success Outnumbered hll sale in rural areas Take advantage of the vacant market left by hll which was thought to be not penetrable but them 1/3 rd price of regular price was the enough harbinger of nirma to survive in market Became number 1 brand in asia : focused on massive market segment that was hungry of getting a good quality product at affordable price
17. HOW HLL REACTED When nirma came with detergent bar to compete with rin, this time hll took it seriously & came up with project sting & put its plan in to action
18. SWOT ANALYSIS OF NIRMA STRENGTH: BACKWARDINTEGRATION (Into 2 main raw materials- alkyl benzene and soda ash) MARKET LEADERSHIP DISTRIBUTION NETWORK
19. SWOT CONTINUED… WEAKNESS: Image of CHEAP brand. Less presence in the premium brand segment. Lack of global tie ups
20. SWOT CONTINUED… OPPERTUNITIES: Exports Entry in to other categories. Acquisitions of local players
21. SWOT CONTINUED… THREATS: Brand image. Existing Players like HUL, P&G, Godrej ,ITC. Lacked necessary network in urban areas. MNC’s coming to India. Emergence of small regional players