2. Project Offered By :
Prof. Debashish Brahma
Project Done n Presented By:
Anup Hirawat roll no. 04
Vijay Kumar Popat roll no. 54
Suchanda Banerjee roll no. 51
Nayeem Khan roll no. 20
3. PAST RECORDS ABOUT NIRMA
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 the price of similar products then available. At Rs 6, Nirma, named
after his daughter, was the cheapest detergent vying for attention on shop shelves. By the
late 1980s, Nirma had become one of the world's largest-selling detergent powders. That he
rewrote history and gave Hindustan Lever, the Indian subsidiary of the Anglo-Dutch foods
and toiletries conglomerate Unilever, a huge headache is well-chronicled. Today he is proud
owner of an Rs 2,500-crore Ahmedabad-based soaps and detergents major
It has been Patel's dream to make Nirma a synonym for quality. "Nirma is not merely
a brand or a product, it is a dynamic phenomenon, a revolution, a philosophy," he once
said. Nirma sells over 800,000 tones of detergent products every year and commands a 35%
share of the Indian detergent market, making it one of the world’s biggest detergent brands.
Towards this end, he tried his hand at many brand extensions. From toothpaste to salt and
matchsticks, they all nestled under the Nirma umbrella.
Incorporated as a private limited company, Nirma was converted into a deemed public
company and then to a public limited one in Nov.'93. Nirma is an over Rs. 17 billion brand
with a leadership presence in Detergents, Soaps and Personal Care Products, offering
employment to over 15,000 people. In fiscal 1997, the Nirma group restructured operations
and merged four companies – Nilinta Chemicals, Nirma Detergents, Nirma Soaps and
Detergents, and Shiva Soaps and Detergents – with its flagship Nirma Ltd. Products are
marketed through a 100-per cent subsidiary, Nirma Consumer Care.
4. Nirma has undertaken backward integration into manufacture of Industrial Products
like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid,
Glycerine and Sulphuric Acid.
Today, Nirma sells over 800000 tones of detergent products annually, giving it a
35% share of the Indian market, which are the world’s second largest fabric wash products
markets. This makes Nirma India's largest detergent marketer and one of the world's
biggest detergent brands. The Company has acquired Kisan Industries Limited situated at
Village Moraiya, Dist. Ahmedabad as a going concern, which was engaged in the business
of manufacture of detergents, Single Super Phosphate, fertilizer and printing and
packaging. The second stream of the 420000 tpa Soda Ash plant at village Kalatalav,
Bhavnagar was commissioned in September 2000. The Company also set up a pure water
plant to manufacture 2.80 lacs TPA Vacuum-salt in October 2000.Debottlenecking process
which was made during 2001-02 by the company resulted in expansion of installed capacity
of Soda Ash at Village Kalatalav, from 420000 TPA to 650000 TPA. The total cost of the
project is approximately Rs.110 crores. This project is expected to be completed in
September, 2002. The company issued Secured NCD aggregating Rs.360 crores in order to
augment its working capital and also to bring-in cost effiency in funding cost
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.
DIRECTOR OF NIRMA : Mr. RAJENDRA D. SHAH
5. Nirma Limited
BOARD OF DIRECTORS AS OF 2007-08
Dr. K. K. Patel, Chairman
Shri Rakesh K. Patel, Vice Chairman
Shri Shrenikbhai K. Lalbhai
Shri Pankaj R. Patel
Shri Rajendra D. Shah
Shri A. P. Sarwan
Shri Chinubhai R. Shah
Shri Kaushikbhai N. Patel
Shri Kalpesh A. Patel, Executive Director
Shri Hiren K. Patel, Managing Director
AUDITORS AS OF 2007-08
Hemanshu Shah & Co.
Chartered Accountants
Ahmedabad
COMPANY SECRETARY AS OF 2007-08
Shri Paresh Sheth
REGISTERED OFFICE AS OF 2007-08
Nirma House
Ashram Road
Ahmedabad - 380 009
REGISTRARS AND SHARE TRANSFER AGENT AS OF 2007-08
M/s. Sharepro Services (India) Pvt. Limited
Mumbai - 400 099
6. 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
'Umbr
ella 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.
This product created a marketing miracle, when introduced in the domestic marketplace. In
1969, when the detergents were priced so exorbitantly that for most of the Indians, it was a luxury
item. Nirma envisioned the vast Fabric Wash market segment and sensed a tremendous potential
therein. This product was priced at almost one third to that of the competitor brands, resulting into
instant trial by the consumers. Owing to its unique environment-friendly, phosphate-free
formulation, the consumers became loyal to this brand, helping it to over-take the decades old
brands, in terms of volumes. This brand had been ranked as the Most widely distributed detergent
powder brand in India as per All India Census of Retail Outlets carried out in 435 urban towns by
7. the AIMS (Asian Information Marketing & Social) Research agency [Brand Equity - The Economic
Times, March 11, 1997]. As per the ORG-MARG Rural Consumer Panel [December 1998] survey,
Nirma brand has been ranked as highest in terms of penetration in washing powder category [BT
Rural Market Watch, Business Today, June 22, 1999].
Detergents
Nirma dominates the popular detergent segment with brands like Nirma Popular powder, Nirma
Detergent powder, Nirma bar, etc. Super Nirma detergent powder is positioned in the mid-priced
segment. Detergent volumes in FY00 increased by 4.4% to 615,749 tons.
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.
Super Nirma high quality spray dried detergent was launched into market in 1996 with
a price 40% lower than the nearest competitor offering the same quality. With in a short span of
two years Nirma Super Detergent Powder cornered substantial market share in the premium
detergent segment. The brand targeted towards Nirma consumers who were shifting towards
more sophisticated form of washing, clicked very well as the ever dependable Nirma Brand
8. name assured high quality at affordable prices. The powder is available in 25 grams, 500 grams
and 1000 grams in polypacks.
Nirma launched a flanking brand named Nirma Popular Powder in selected pockets
where Detergent powder usage was limited or the me too brands were eating into Nirma's share.
The product was a good product available at prices that would switch people to use branded
powder. The substandard products took a severe beating in the pockets where Nirma Popular was
launched. It is available in 500 grams and 1000 grams pack sizes. The product with similar name
and slightly different formulation is being sold in the exports market successfully.
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 running water added to the wastage of washing powder. The answer was brought by Nirma
in form of Detergent Cake. The brand today is ranked as most distributed detergent cake brand in
the country by AIMS retail audit. The product is available in two pack sizes of 125 grams and
250 grams
9. 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 multi-colour wrapper, which shows a slice of lemon and trishul, exemplifies razor-
sharp 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.
10. Marketing Environment of the Product Social
WELFARE AND SOCIAL SECURITY
The Company strongly believes that its human capital should come to the work with fresh and
healthy physicalcondition without any stress. Therefore the Company provides under welfare and
social security scheme natural and accidental life insurance, medical insurance for employees and
their family, gratuity interest subsidies for housing and vehicle. Manufacturing facilities of the
Company are supported with canteen for providing hygienic food, and other modern facilities
including crèches for female employees.
ENVIRONMENT AND SAFETY:
The quality policy framed by the Company attribute it to comply to environment, safety and social
obligations. These obligations are complied with by means of adopting eco friendly and eco efficient
process technologies. The Company has established well equipped R&D laboratory and quality
control laboratory for in house monitoring. Regular environmental monitoring of ambient air, stack
emissions, effluent discharge, noise etc. are being done. Efforts are made towards water resource
conservation by development of rain water harvesting ponds, recycle and reuse of treated effluents,
wherever possible thereby maintaining zero discharge etc. The Company is also implementing onsite
as well as offsite emergency plan for effective management of an accident/ incident to minimize
the loss of manpower, property both in and around plant facility. All plant locations are generally
organising safety week once in a year. Gujarat Safety Council also rewards Company’s various units
for accident free days.
Soda Ash
The performance of India's Rs.22-billion Soda Ash industry depends heavily on end user segments,
such as glass and detergents. Driven by the high growth in the construction industry (key consumers
of glass), Soda Ash demand in India is estimated to have registered a compounded annual growth
rate (CAGR) of 4 to 5 per cent during the past five years. Indian Soda Ash prices will continue to be
linked to international prices, which were depressed until 2004. However, due to growing demand
and limited capacity additions, prices are picking up steadily. The Company is second largest
producer of Soda Ash in India.
11. Plants
Full range of Packaging facilities
13,500 TPA of packaging material
7,200 TPA of Poly Ethylene film
manufacturing
6,000 TPA Paper Wrapper printing
6,000 TPA Laminated Wrappers & Pouch
manufacturing
3,600 TPA of Stiffner Boards Poly Coating
and Slitting
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 minute
Detergents ::...
50,00,000 pieces sold per day
38% market share
Largest Detergent manufacturer of India
12. Political & Legal
Your Company continues to commit good Corporate Governance vis-à-vis corporate practices by
complying with various Standards prescribed by the Securities and Exchange Board of India vide
Clause 49 of the Listing Agreement with the Stock Exchanges. Apart from mandatory requirements
from Listing Agreement, the Company is also complying some of the non mandatory requirements
to maintain high degree of Governance. A separate report on Corporate Governance along with a
certificate from the Auditors and Management Discussion and Analysis are annexed as part of the
Annual Report.
During the year under review, the Company has incorporated Karnavati Holdings Inc. (KHI)
in the state of Delaware, United States of America, on November 20, 2007 as Wholly Owned
Subsidiary of the Company and signed the share purchase agreements with KHI. KHI incorporated
Searles Valley Minerals Operations Acquisition Corporation and Searles Valley Minerals Acquisition
Corporation in the state of Delaware, USA,
merged with and into Searles Valley Minerals Operations Inc (SVMO) and Searles Valley Minerals
Inc. (SVM) on 27th December 2007. Consequently, SVMO and SVM, the surviving corporations
have become stepdown subsidiaries of the Company. In terms of the approval granted to the
Company by Ministry of Corporate Affairs, Government of India vide its letter No. 47/495/2008-
CL-III dated 5th August 2008, the Company has been exempted from complying with the
provisions of sub section (1) of section 212 of the Companies Act, 1956, for the financial year under
review. Further SVMO wholly owns four entities in U.S.A. namely Searles Domestic Water
Company LLC, Searles Valley Residences LLC, Trona Railway Company LLC and NATI LLC,
while NATI LLC has a 50 percent membership in Trona Export Terminals LLC in U.S.A.
Head Office of Nirma At Ahemdabad
13. Reasearch & Development
The company has established a well equipped R & D Laboratory and quality control laboratory with
number of sophisticated instruments for testing and analysis. In Soda Ash plant, in order to have
process checks, required "ON-LINE" instruments / analysis has been installed and established
process Laboratory and R & D Laboratory have been set up. Both the Laboratories are fully
equipped with all required instruments. Solid, Liquid and Gaseous effluent monitoring and
equipments are established in Laboratory and effluent prior to discharge is monitored on regular
basis. A detailed technical study of mixing of clear liquor of effluents of Soda Ash with Solar Salt of
Brine was carried out. For validation, the Company has engaged M/s. Sriram Institute, which has
helped in achieving zero liquid effluents discharge status. At LAB plant, the Company has well-
established R & D facilities with sophisticated instruments. The R & D activities have enabled the
Company to produce LAB of better quality, which is meeting with the global requirements of
LAB as per the international customers' requirements. The same has been achieved with the same
set up of plant equipment and machinery with minor modification. The Development and
absorption of new methods of analysis to improve product profile for customers resulted in
strenghtening the Company's position in both local and global market.
14. Current Marketing Environment of Buyers’ & Suppliers’ Bargaining Power
(A) MARKET PRICE DATA
BOMBAY STOCK EXCHANGE NATIONAL STOCK EXCHANGE
Month & High (Rs.) Low (Rs.) High(Rs) Low(Rs)
Year
April 07 165.70 140.00 166.80 140.00
May07 224.00 155.10 227.47 157.00
June 07 203.00 157.00 203.00 160.00
July 07 188.90 157.00 189.00 166.10
August 07 170.80 152.00 183.00 151.00
September 07 179.90 160.00 190.00 151.05
October 07 167.95 148.15 189.00 148.25
November 07 255.50 143.00 265.00 141.05
December 07 277.00 220.85 276.00 220.05
January 08 274.90 165.00 272.00 170.00
February 08 218.25 171.00 215.25 160.00
March 08 185.00 143.00 185.00 135.00
(B) SHAREHOLDING PATTERN AS ON 31.3.2008
Category No. of shares held Parcentage of
shareholders
1. Indian Promoters’s holding 12,28,15,920 77.17%
2. Non- Promoters’ holding
a.Mutual funds 15,09,148 0.95%
b.Banks,Financial institutions,Insurance companies. 70,107 0.04%
(Central/State Govt. Institutions / Non-Government Institutions) 6,83,305 0.43%
c. FIIs 77,191 0.05%
d. NRIs/OCBs 1,56,99,784 9.87%
1,82,86,822 11.49%
e. Private Corporate Bodies
3. f. Indian Public
15. TOTAL 15,91,42,282 100%
(C) DISTRIBUTION OF SHAREHOLDING AS ON 31.03.2008
Category No. of shares held Parcentage of
shareholders
1. Indian Promoters’s holding 12,28,15,920 77.17%
2. Non- Promoters’ holding
a.Mutual funds 15,09,148 0.95%
b.Banks,Financial institutions,Insurance companies. 70,107 0.04%
(Central/State Govt. Institutions / Non-Government Institutions) 6,83,305 0.43%
c. FIIs 77,191 0.05%
d. NRIs/OCBs 1,56,99,784 9.87%
1,82,86,822 11.49%
e. Private Corporate Bodies
3. f. Indian Public
TOTAL 15,91,42,282 100%
The above report was placed before the Board of Directors at its meeting held on 19th August 2008 and the
same was approved.
16. Nirma losing froth in soaps, detergents biz
• Soaps and detergents company Nirma Ltd, which gave Hindustan Unilever Ltd’s
(HUL) Surf a run for its money in the 1980s, is now battling a shrinking market share
in its core business. The company’s profitability and stock price have been on the
decline since April 2006.
• According to market research agency ACNielsen, Nirma had a 15.2% share of the
detergents segment and an 8.2% of soaps (both in terms of value) in April last year.
But by June this year, its market share had dipped to 13.5% in detergents and 6.74%
in soaps.
• Nirma’s sole USP, value for money, is not enough to take on rivals, analysts say
• The company’s share price also fell 24% during the period.
• Nirma did not respond to a detailed questionnaire sent by Mint to it.
• HUL, leader in the Rs8,000 crore detergents segment, commands a 38% share of the
market.
• In the Rs6,000 crore soaps category, Godrej Consumer Products Ltd (GCPL) has
surged past Nirma with a market share of around 11%.
• In the 15-month period between April 2006 and June 2007, Nirma’s market share
declined by 1.5 percentage points, while GCPL gained by 1.9 percentage points.
• HUL and GCPL refused to comment on Nirma. GCPL, however, said its focus on
brand communication and product quality helped it grow in a fiercely competitive
market. “We have, as a company, believed in the power of positive word of mouth
from satisfied users of our products, which seems to be working. The more users try
our products, the stronger the word of mouth,” says R.K. Sinha, chief operating
officer, GCPL.
• In the year ended December, Nirma’s sales grew 4.3% year-on-year to Rs1,918.8 crore
while its net profit fell 15.2% to Rs241.38 crore. In the quarter ended 30 June, sales
grew to Rs609.1 crore against Rs525.5 crore in the same quarter last year, while the
net profit fell 45% quarter-on-quarter to Rs41.1 crore.
• According to experts, Nirma suffers from the inability to innovate in the product
categories it is present in and also tinker with its pricing. They say companies in the
detergents and soaps categories, both multinationals as well as local players, have
built their strategies around viability, affordability and visibility; Nirma’s focus, they
add, has largely been on affordability.
• “With rising incomes, consumers are now shifting from economy brands to
aspirational purchases and Nirma has failed to capitalize on this shift,” says Jagdeep
Kapoor, chairman and managing director of Mumbai-based brand marketing
consultancy firm Samsika Marketing Consultants Pvt. Ltd.
• Analysts say Nirma’s brand promotion efforts and pricing strategy have weakened
over the past few quarters. “Nirma has been continuing with the same advertising for
years and now; even its visibility is on the decline on TV channels, except for
Doordarshan,” says an analyst with a Mumbai-based brokerage firm, who did not
wish to be named because he has not met the firm’s officials in a long time. “They
have not been meeting analysts,” he adds.
• The firm, the analyst says, has also not raised its prices for some time despite the
increase in prices of LAB (linear alkyl benzene, a key ingredient used in
17. manufacturing detergents) and palm oil (another key ingredient in the manufacture
of soap).
• “Also, the rivals have products across all price points to mitigate the input cost effect,
while Nirma is available in only one plank—value for money,” he adds.
18. Direct / Indirect Competition
From the above chart we can easily observe that Nirma holds approx. 26% of total market as related
to its competitors. As we can also observe that Hul covers most of the market share that’s 39%. We
can also see that others also capture good market share that’s 25% it includes domesic detergent like
Ghadi and all.
It is time for the two major detergent manufacturers - Hindustan Lever (HLL) and Henkel
Spic - to lather up a froth by aggressively relaunching their mid-priced (Rs. 42 - Rs.45)
detergent powder market in India.
While HLL relaunched its Rin Shakti, Henkel Spic followed suit with Mr. White. Both products have
an improved product proposition with new ingredients and come in redesigned packs.
The Rs.5,700 crore detergent market is segmented into two product categories - powder and cake.
Within this, the detergent powder market is further sub divided into four categories -
concentrates/compact (variants of Surf, Henko, Ariel), premium (variants of Surf, Henko, Ariel),
mass premium/mid price (Rin, Mr.White, Tide and regional brands) and popular (Nirma, Wheel,
Chek).
19. Value-wise, the premium segment contributes a major share while the popular brands contributes
the volumes. However the detergents market in a general has not grown in the last couple of years,
hence the relaunches
Says Henkel Spic's managing director, Satish Kumar, "The relaunch is not only to infuse some
excitement into the market but also to offer better product to the consumers."
The first to move was HLL. Early in January, this year, the company relaunched its Rin Shakti
powder as the New Rin Powder. The newness is the detergent's property to dissolve fully in the
water unlike with the earlier product and other competing brands. This, claims the manufacturer,
results in lower usage and better cleaning of the fabric - a technology patented by Unilever.
According to HLL, other detergents leave behind a mud-like residue, while Rin's new innovation
allows 100 per cent dissolution and enhanceing whiteness. HLL had earlier incorporated this in its
detergent bar variant, Rin Supreme. In addition, the New Rin Powder also has enhanced fragrance.
For HLL the Rin brand - powder and cake - brings in a whopping Rs.700 crore revenue per annum.
On the other hand, Henkel Spic's Kumar claims that Mr. White is the only eco-friendly detergent in
its segment which also produces dazzling whiteness and comes with a fresh fragrance. "We have
strengthened the ingredients in the detergents. Further, the powder comes in the new international
gusset pack to portray the premium quality and strong shelf visibility."
According to him, the Rs.50 crore revenue Mr.White is the number two brand in the segment with a
market share of 14 per cent, which with the relaunch is expected to go up to 20 per cent. The brand
has good presence in Andhra Pradesh, Kerala and Tamil Nadu.
Predictably consumers of both brands have to suffer a slight price hike. Defends Kumar, "The price
hike of Mr. White is just one rupee to take care of the increase in input costs." According to him, for
the past two years there was no price increase though the costs of inputs had gone up.
While Mr.White is available for Rs.42 per kg, the New Rin Powder is available at an introductory
price of Rs.42/kg as against the normal price of Rs.45.
HLL's television commercial for the New Rin Powder talks about the consumer's desire to sport
sparkling white clothes. On the other hand Henkel Spic's commercial uses a top-down approach.
The commercial features a scientist's family as users of Mr.White feeling happy with its dirt
removing properties.
20. Says Kumar, "Research shows that people generally believe in the voices of authority and experience
like scientists, doctors, teachers." The company does not forsee any brand cannibalisation between
Mr.White and its Rs 100-crore Henko, with the former eating into Henko's market share.
"The respective brand positioning (Henko, the stain remover, and Mr.White, the dazzling whiteness
detergent) and target markets segments are different," remarks Kumar.
Target Customers of the Product
The target customer of the product are middle class n upper middle class because though Nirma is
quite in a good reach to rural people so there main target is to sustain that rural people with creating
new customers in the middle class n upper middle class. Though its quite difficult for nirma to
create because its competitors r in wide range then nirma but nirma have his name which is quite
familiar to each n every people or detergent user in the country.
Consumer Wants / Needs /Demands
Better quality products.
Cheaper in price.
Variety in detergent for expensive clothes.
Easily availability
Attractive packaging
Edge over other brand
Eco-friendly / Non pollutant
Why Consumer Buy This Product.?
Cheaper in price than others.
The new improvement in the product will attract consumer very much in low price.
21. Nirma Should Work On :
Introduction of sachet
Introduction of Family jar
Introduction of Liquid detergent for woolen clothes
Improvement in Research n Development group
Improvement in Distributing patterns
Introduction of attractive packet
Offer better commission to the seller for selling of product
Better advertisement
Enhance the mode of advertisement like through radio, free distribution,
Feedback
Demonstration of new packet