Detergent Survey of Nirma Ltd

A project on detergent & satisfaction Survey of Nirma
A Project Report on
Deterjent & Satisfaction Survey of
Nirma Ltd.
project report submitted in the fulfillment of
requirements for the Master of business
Administration (2008-10)
Submitted To:
MISS RUCHI TIWARI
Submitted By:
ANKITA GHOSH
MBA(2008-10)
Mathura Devi Institute of Technology & Management,
indore
Mathura Devi inst. Of Tech. and
Mgmt. , indore Page 1
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.
Lecturer
MISS. RUCHI TIWARI
MDITM , INDORE
ACKNOWLEDGEMENT
The research on “A Project Report on Deterjent & Satisfaction
Survey of Nirma Ltd.” has been given to me as part of the
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 &
DELER’S, 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
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 India’s 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. Introduction to the detergent Industry
3. History of Nirma
4. Objective & hypothisis
5.Research Methodology
6.Questionnaire Analysis
7. Conclusion & Suggestions
8. Bibliography
9.Questionnaire
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
Detergents, especially those made for use with water, often include
different components such as:
 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.
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 solution—to get glass very clean for certain
precisiondemanding
purposes such as analytical chemistry
 a high-foaming mixture of surfactants with low skin irritation—for
handwashing
of dishware in a sink or dishpan
 any of various non-foaming compositions—for dishware in
a dishwashing machine

 other surfactant-based compositions—for washing windows with a
squeegee, followed by rinsing
 an ammonia-containing solution—for cleaning windows with no
additional dilution and no rinsing
 ethano l or methanol in windshield washer fluid—used 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.
The term detergent by itself is sometimes used to refer specifically
to clothing detergent, as opposed to hand soap or other types of cleaning
agents.
Plain water, if used for cleaning, is a detergent. Probably the most
widelyused
detergents other than water are soaps or mixtures composed chiefly
of soaps. However, not all soaps have significant detergency and, although
the words "detergent" and "soap" are sometimes used interchangeably, not
every detergent is a soap.
The term detergent is sometimes used to refer to any surfactant, even
when it is not used for cleaning. This terminology should be avoided as
long as the term surfactant itself is available.
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
used in industry until World War II. By then new developments and the later
conversion of USA aviation fuel plants to producetetrapropylene, used
in household detergents, caused a fast growth of household use, in the late
1940s. In the late 1960s biological detergents, containing enzymes, better
suited to dissolve protein stains, such as egg stains, were introduced in the
USA by Procter & Gamble.
PREFASE
RURAL INDIA
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
India, is 719,969,459. Divide that by the estimated total world population of
5.9 billion, and rural India becomes 12.2% of world population. Forget all of
us sitting in the cities (4.4% more) -- 12.2% of the world lives in rural India.
Which, given our effective lack of knowledge makes it a bit like one of the
world's last great undiscovered countries.
Rural inhabitants aren't a different species, but consumers as quirky
and demanding of marketers as any of their urban cousins. And just as
eager to consume -- maybe even more so, given their access to messages
of consumption via TV, but lacking the easy access that makes urban
consumer’s blasé. For marketers the potential is huge -- a country waiting
eagerly for their products, providing they can make the effort to export
inwards, and learn to play the games by rural rules. And if they don't, the
chances are that they will be left behind. Even with the minimal effort put in
by companies so far, rural India now accounts for majority, or near majority,
consumption in many categories. -- Rural India is clearly not such an area
of darkness anymore, and as a further incentive to keep the lights on,
remember that farmers get electricity free!
One of the most popular and widely accepted Marketing Myth is that
the rural consumers will only buy really cheap mass market brands. But
the stark reality is that though brands like Nirma lead, but penetration of
premium products has also been observed even to the lowest SEC. The

percentages may be very small, but given the large universe, the actual
figures may be significant
Thus when we are aware of the fact that brands like Nirma rule the
rural market, it would be interesting to study and analyse their basic
marketing inputs -----the 4P‖s
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
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.
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, Nirmasells 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.
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.
ANNEXURE
Board of Directors
Chairman & Managing
Director: Karsanbhai K Patel
Executive Director: Kalpesh A Patel
Director: Shrenikbhai K Lalbhai
Director: Manubhai R Shroff
Director: Rajendra D Shah
Director: Atulya Prasad Sarwan
Director: Rakesh K Patel
Director: Hiren K Patel
Additional Director: Kaushikbhai N Patel
Additional Director: Chinubhai R Shah
Company name Sales %
yoy
Operating
profit
%
yoy
PAT %
yoy
Nirma Ltd 4826.7 40 1287.9 45 690.9 5
Smithkline Beecham Consumer
Healthcare Ltd
2376.1 21 512.3 20 324.6 16
Pidilite Industries Ltd 1145.9 20 254.2 13 135.4 9

Godrej Soaps Ltd 2051.8 18 345.3 32 184.7 602
Indian Shaving Products Ltd 730.5 16 142.2 23 56.2 16
Britannia Industries Ltd 3519 15 317.0 25 145 12
Dabur India Ltd 2989.9 14 397.1 35 222.2 24
Nestle Ltd 4694 13 875.0 24 497 37
Cadbury India Ltd 1866.8 12 350.3 28 171.5 26
Reckitt And Colman Of India Ltd 1484.7 11 98.2 (3) 59.9 16
Henkel Spic India Ltd 717.44 10 28.6 (15) 7.25 (192)
Colgate Palmolive India Ltd 2948 9 311.0 8 176 32
I T C Ltd 10028.9 6 4662.7 19 2516.5 22
Procter and Gamble Hygiene &
Healthcare Ltd
1200.9 1 295.2 20 185.4 24
Hindustan Lever Ltd 24619 0 4475.8 9 3311.6 16
Tata Tea Ltd 2274.9 (2) 655.8 (10) 360.6 (22)
Marico Industries Ltd 1630.83 (5) 171.6 4 129.88 9
DETERGENT COMPANYS IN INDIA & HIS SALE
Yoy – year on yeargrowth
Source: India Info line database
Performance of segment
Period ended 03/99 03/00 % change
Sales value (Rs mn)
Detergents 8,100.4 8,110.7 +0.12%
Glycerine 257.9 304.7 +18.15%
Linear alkyl benzene 761.3 1,565.3 +105.61%
Salt 9.0 2.6 -71.11%
Shampoo 1.4 0.3 -78.57%
Sulphuric acid 64.6 134.1 +107.59%
Toilet soap 3,275.3 4,674.9 +42.73%
Others 2,259.6 2,383.6 +5.49%
Sales volume (unit)
Detergents (Ton) 590,031.0 615,749.0 +4.36%
Glycerine (Ton) 4,269.0 4,810.0 +12.67%
Linear alkyl benzene (Ton) 17,688.0 31,552.0 +78.38%
Salt (Ton) 3,588.0 1,044.0 -70.90%
Shampoo (Ton) 19.0 4.0 -78.95%
Sulphuric acid (Ton) 51,588.0 67,028.0 +29.94%
Toilet soap (Ton) 75,102.0 106,626.0 +41.97%
Unit realisation (Rs/unit)

Detergents (Ton) 13,729 13,172 -4.05%
Glycerine (Ton) 60,421 63,347 +4.84%
Linear alkyl benzene (Ton) 43,040 49,610 +15.26%
Salt (Ton) 2,508 2,490 -0.72%
Shampoo (Ton) 73,684 75,000 +1.79%
Sulphuric acid (Ton) 1,252 2,001 +59.82%
Toilet soap (Ton) 43,612 43,844 +0.53%
Vision, Mision & Philosophy
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.
Nirma is a phenomenon and synonymous with Value for Money. The brand
transcends the specific dynamic of any particular product category, which
is best captured in its above mission statement - a statement of sustained
innovation, an unceasing effort to deliver better value to consumers,
through better product quality.
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
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 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
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.
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
substantial volumes at the cost of he competitor's and India's largest selling
brand. The pricing of the product was penetrative at a quality (TFM - 60%)
which the competitor's could not match. The product is available in 75
grams and 150 grams pack sizes.
Nirma Beauty Soap: After targeting the largest selling toilet soap
with Nirma Bath, now was the time to target the second largest selling toilet
soap. Nirma after successful launch of Nirma Bath launched, Nirma
Beauty.
Nirma Beauty was a popular category soap which targeted the middle and
lower middle class population of the country. The product had high TFM
content of 70%, an excellent aroma and an advertisement with a touch of
aspiration. The product became an instant success, and in no time became
India's third largest selling toilet soap brand. The volumes came from the
category shift as well as brand switching. The product is available in 100
grams and 150 grams pack sizes and three different perfume variants.
Recently company has changed its packaging and made it more
contemporary by printing the wrappers on six color Cerruti machine from
Italy thereby differentiating it from the me too look alike'. The brand today is
growing very fast and is firmly moving towards the second position.
Competitors tried
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.

Nirma Lime Fresh was launched in 1997 with absolutely no
advertising support. The lime segment of the toilet soap market was
growing at a sedate rate, prior to the launch of Nirma Lime Fresh. Launch
of Nirma Lime Fresh saw the volumes of the segment grow at more than
10%. During the first year of the launch Nirma Lime Fresh over took the
largest selling brand in the lime segment. The product is priced
competitively with 80% TFM content and strong tingling lime fragrance. The
commercial was aired during the later part of the year which saw the
volume grow rapidly. The commercial shot at Maldives and Switzerland
with
a new and young face was equally liked by consumers. The successful
launch was termed as the seventh best launch of the year 1997-98 by
Business Standard. There in no looking back and today Nirma Lime Fresh
is the undisputed market leader in the lime segment and is giving shivers to
the competition. The product is available in 75 grams and 150 grams.
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
point of time introduced a 'fighter brand' called Nima Lime to provide at

shield to our core brand - in this case 'Nirma Lime Fresh Soap'. The
success of Nima Lime has been the cornerstone in Nima brand growing
into a full fledged business
Nima Sandal: This soap was launched in Q2 - '99. Over a period of
time, the Indian toilet soap market has fragmented and has seen the
emergence of prominent segments such as Sandal, Rose, Jasmine, Body
moisturizing soaps, Herbal etc. Nima Sandal is Nirma's offering in
the ethnic sandal segment. With a rich and exotic perfume and 80% TFM
content, this toilet soap is available in a 100 gram packing. Nima Sandal is
promoted by a TV commercial shot at exotic locales depicting the form of
21st Century Indian woman. Early market indication promises this brand to
be the future no.1 in this segment.
Nima Herbal is the emanation of Nirma's quality and caliber. Nima
Herbal is ingrained with benefits that accrue from using various herbs,
shrubs, medicinal plants and various day-to-day commodities like sandal
wood, lemon, turmeric, coconut, tulsi, neem etc. that are gifted to mankind
by nature. Nima Herbal is the nature's legacy. It is reflection of Nirma's
conviction of "Care For The nature's legacy. It is reflection of Nirma's
conviction of "Care for the Consumers". It was launched in Q3, 2000 with a
78% TFM content in a 100 gram packing.
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,
Better Value, Better Living'. Herbalina has an exceptional long-lasting,
heart-capturing aroma.
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
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 giant’s 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
that of the industry in general. Moreover, Nirma operated in the small-scale
sector and, therefore saved an enormous amount of excise duty that
multinationals had to pay on every kilo of detergent produced. The latter
simply could not hope to bring the price down to a level that was attractive
enough for the middle and lower-middle classes, which were the bulks
segments for Nirma sales.
The pricing policy adopted by Nirma for its Nirma washing powder i.e.
adequate Quality at an Affordable price has challenged the mighty HLL’s
Surf.
Nirma Washing Powder
1kg
18.00
18.00
Nirma Washing Po
Nirma Washing Powder
500grams
9.00

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.
Thus it is a well known fact that Nirma’s 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, Nirma’s
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.
85 per ton (In 1985 $1 U.S = Indian Rupee 12.368)1for mixing raw materials
and then bagging them into 1000 bags of 1 kg each. Payment was made
according to work done and since labor was not permanent no additional
overhead for benefits etc. needed to be paid. It was not until the mid 80’s
that Nirmastarted to mechanize their production process, however by then
they were an already well-established name. In 1989 Nirma’s labor costs
for 8000 workers was estimated to be between Rs 15-20 per person day in
comparison to HLL who paid their semi-skilled workers approximately Rs
30-40 per person day. (In 1989 $1 U.S = Indian Rupee 16.225)2
SUPPLY CHAIN OF NIRMA:
1
2
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 [Nirma Products]:
 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 [Nima Products]:

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 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
equipped to meet the demands of the loyal consumers of the Company
across the country.
The robust network ensures the availability of various products at different
retail outlets across the nation. The Distribution channel is geared up to
enhance trade relations, build up the retailer base by providing various
benefits and incentives, organize and implement different activities to
generate sales and manage numerous other programmes, schemes and
activities concentrated towards business development.
DISTRIBUTION
In its incipient days Karsanbhai Patel’s 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 arm’s
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 product’s 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

extremely aware of the importance of keeping costs down. Once demand
for Nirmahad outgrown his ability to deliver on bicycle he moved on to vans
and then later to trucks. Nirmahad neither a field sales force nor owned a
distribution network. Karsanbhai negotiated prices with truck and van
suppliers on a daily basis.
As sales grew Karsanbhai eventually hired stockists(those who stocked
additional quantities of the goods) as commission agents. On the one hand
it helped him avoid central sales tax and the stockists were responsible for
all transportation, octroi,3handling and delivery costs. There was also a
strict system of protocol and distribution depended on prepayment for
stocks so as to minimize risk for Nirma.
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. The brand promotion efforts are
complemented by Nirma’s distribution reach and market penetration,
through a country wide network of 400 distributors and over 2 million retail
outlets, making Nirma products available from the smallest rural village to
the largest metro.
The company has set up for Nima a parallel distribution and sales channel
consisting of 1500 distributors and an independent sales force. A two-tier
network, the Nima distribution channel is 'flat' enabling swift market
response. The company took
great care that the new brand did not cannibalize on the existing brands.
The Nima portfolio today complements the Nirma range, furthering the
company's strategy of Value for Money.
3
Level of Channel Distribution:
Company
manufacturing unit
Consolidator
S Wemhoi-lesaler
Wholesaler
CRoentsauilmere r

NIRMA
COMPANY
DISTR IBUTI ON
IN YEA R/4
According to “Product
Distribution” .
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
Energy efficient technology
from AKZO, Netherlands
Only Soda Ash plant in the
world with full DCS controls
ICMA award for Best Total
Water Management Practices
in Chemical Industry
Category
Linear Alkyl Benzene ::...
Investment of Rs. 630 crores
75,000 TPA capacity
Only second plant in the
world with Eco-friendly Non
HF technology from UOP,
USA
Bio-degradable product
70 km of integrated pipeline
network for feed stock
8,00,000 TPA of Feed Stock
32% market share
DCS controlled fully
automatic plant
Packaging ::...

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
Edible Salt ::...
Asia’s 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
Industrial Salt ::...
Industrial salt capacity of
15,00,000 tpa
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 ::...
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
Industrial Salt ::...
Industrial salt capacity of
15,00,000 tpa
Others ::...
AOS ( Alfa Olefin Sulfonate )
Sulfuric Acid
Glycerin
SSP ( Single Super Phosphate )
Chenal partner-
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 [Nirma Products]:
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 [Nima Products]:
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
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 equipped to meet
the demands of the loyal consumers of the Company across the country.
The robust network ensures the availability of various products at different retail outlets
across the nation. The Distribution channel is geared up to enhance trade relations,
build up the retailer base by providing various benefits and incentives, organize and
implement different activities to generate sales and manage numerous other
programmes, schemes and activities concentrated towards business development.
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
significant role in making Nirma a house-hold 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 equipped to meet

the demands of the loyal consumers of the Company across the country. The robust
network ensures the availability of various products at different retail outlets across the
nation. The Distribution channel is geared up to enhance trade relations, build up the
retailer base by providing various benefits and incentives, organize and implement
different activities to generate sales and manage numerous other programmes,
schemes and activities concentrated towards business development.
Profit & Loss account for the year ended 31 st March 2006
Rs in crores
2005-2006 2004-2005
Income 1949.80 1834.90
Expenditure 1449.36 1325.38
Profit before depreciation & Tax 500.44 509.52
Profit before Tax 344.02 352.81
Net profit 241.38 284.65
Market share of Nirma
20% market capture by nirma in 2007.
Q.1 DO YOU USE DETERGENT ?
Q.2 WICH PROUDCUT USE IN DETERGENT ?
Q.3 WHAT YOU THINK ABOUT NIRMA ?
Q. 4 Wich product is the best of nirma ?
Q. 5 Dose the cost effect on your choice ?
SUGGESTIONS
NIRMA is best detergent company in india. Its product quality is also very
good. But compare to other company nirma’s 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.
Bibliography:
www.google.com
www.nirma.com
Magazines(india today)
Marketing Management by Philip Kotler
Kothari. C. R, Research Methodology, New Age International(P)
Ltd., New Delhi
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 ?
Yes-
NOQ.
2 WICH PROUDUT USE IN DETERGENT ?
1. Nirma
2. Surf Exel
3. Tide
4.Ghadi
Q.3 WHAT YOU THINK ABOUT NIRMA ?
………………………………………………………………..
……………………………………………………………….
……………………………………………………………….
Q. 4 WICH PRODUCT PRODUCT IS THE THE BEST NIRMA ?
1.Soap
2.Detergent
3.other
Q. 5 DOES THE COST EFFECT ON YOUR CHOICE ?
Yes-
NOQ.
6 WHATDO YOU THINK ABOUT NIRMA ?
…………………………………………………………
…………………………………………………………
…………………………………………………………..
Thanks….

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