Description
Describing the Analysis of Nirma company. It includes nirma products in industrial and consumer space. It presents SWOT analysis of Nirma along with GE matrix classification.
Presentation on NIRMA Ltd.
Introduction:Karsanbhai started Nirma • The detergent was phosphate free. • The packs were handmade. • They were delivered at the doorstep by Karsanbhai, on his bicycle while going to his work place, which was 17 km from his home. • They were sold for Rs. 3 per kg, which was one-third of the then least priced popular detergents. • Even at this price, he managed to give a money back guarantee with every pack that was sold! • The detergent was environment friendly too. • The process of detergent production was labor intensive and this gave employment to a large number of people.
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In the early 1970s, when Nirma washing powder was introduced in the lowincome market. That time there was very few detergent brand. They were MNCs like HLL (surf) Starting as a one-product one-man outfit in Nirma became a Rs 17 billion company within three decades. In 2008, Nirma had a 15% share in the toilet soap segment and more
Nirma Ltd:?
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Nirma is one of the most recognizable Indian brands Nirma has about 14, 000 employee-base and annual turnover of more than Rs. 25, 00 crores Nirma rewrote the marking rules and its success story became one of the widely discussed case studies in the B-schools across the world Today, Nirma has one of the largest volume sales with a single brand name in the world In 2004, Nirma's annual sales touched 800,000 tones.
Detergent War
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1980's Surf suffered huge losses at the hands of Nirma Chemicals It evicted HUL's Surf from the No. 1 position in 1985 HUL then came up with lower priced Wheel (green) and Rin (blue) detergent powders targeted at different market segments In 1987, Ghari was launched by RSPL (Rohit Surfactancts Pvt. Ltd.) In late 2011 and early 2012, Ghari beats Wheel and takes the numero-uno spot in Indian detergent industry.
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Currently, Ghari is the market leader with a market share of 17.3%, Wheel is at number 2 with a share of 16.9%, Tide is 3rd with a market share of 13.5%. Nirma has market share of less than 6% now
Products:Industrial ? LAB ( Linear Alkyl Benzene ) ? AOS ( Alfa Olefin Sulfonate ) ? Sulfuric Acid ? Glycerin ? Soda Ash ? Pure salt ? Vacuum Evaporated Iodized Salt ? SSP- Single Super Phosphate ? Sodium silicate
Products:Consumer ? Soaps ? Detergents ? Edible salt ? Scouring product ? Nirma shikakai ? Nirma shampoo ? Nirma toothpaste
Supply Chain of Nirma 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. Operates with two parallel distribution networks Principal Channel [Nirma Products]:
Lowest Cost system in India Speed in distribution Flexibility
Parallel Channel [Nima Products]:
Wider Reach Speedy Market Intelligence Competitive edge & Better focus Complementing Principal Channel
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Nirma’s SWOT Analysis Strengths: Market leadership in detergents and fabric wash and second largest player in toilet soaps. Company has Wide distribution network. Weakness: High interest burden. Less presence in premium segment. Lacks global tie-ups and thus finding it hard to tap export markets. Opportunities: Acquisitions for strengthening its distribution tie-ups. Threats: MNCs coming, to India particularly in Toilet and Soap industry. Emergence of small but strong
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Business Unit Strength The horizontal axis of the GE / McKinsey matrix is the strength of the business unit. Some factors that can be used to determine business unit strength include: Market share Growth in market share Brand equity Distribution channel access Production capacity Profit margins relative to competitors
Industry Attractiveness The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following: •Market growth rate •Market size •Demand variability •Industry profitability •Industry rivalry •Global opportunities •Macroenvironmental factors (PEST)
Index of Business Strength
Strong
High Medium Average Nirma Weak
Market Attractiveness Index
Low
Thanks
doc_304654297.pptx
Describing the Analysis of Nirma company. It includes nirma products in industrial and consumer space. It presents SWOT analysis of Nirma along with GE matrix classification.
Presentation on NIRMA Ltd.
Introduction:Karsanbhai started Nirma • The detergent was phosphate free. • The packs were handmade. • They were delivered at the doorstep by Karsanbhai, on his bicycle while going to his work place, which was 17 km from his home. • They were sold for Rs. 3 per kg, which was one-third of the then least priced popular detergents. • Even at this price, he managed to give a money back guarantee with every pack that was sold! • The detergent was environment friendly too. • The process of detergent production was labor intensive and this gave employment to a large number of people.
?
?
?
?
?
In the early 1970s, when Nirma washing powder was introduced in the lowincome market. That time there was very few detergent brand. They were MNCs like HLL (surf) Starting as a one-product one-man outfit in Nirma became a Rs 17 billion company within three decades. In 2008, Nirma had a 15% share in the toilet soap segment and more
Nirma Ltd:?
?
?
?
?
Nirma is one of the most recognizable Indian brands Nirma has about 14, 000 employee-base and annual turnover of more than Rs. 25, 00 crores Nirma rewrote the marking rules and its success story became one of the widely discussed case studies in the B-schools across the world Today, Nirma has one of the largest volume sales with a single brand name in the world In 2004, Nirma's annual sales touched 800,000 tones.
Detergent War
? ?
?
?
?
1980's Surf suffered huge losses at the hands of Nirma Chemicals It evicted HUL's Surf from the No. 1 position in 1985 HUL then came up with lower priced Wheel (green) and Rin (blue) detergent powders targeted at different market segments In 1987, Ghari was launched by RSPL (Rohit Surfactancts Pvt. Ltd.) In late 2011 and early 2012, Ghari beats Wheel and takes the numero-uno spot in Indian detergent industry.
?
Currently, Ghari is the market leader with a market share of 17.3%, Wheel is at number 2 with a share of 16.9%, Tide is 3rd with a market share of 13.5%. Nirma has market share of less than 6% now
Products:Industrial ? LAB ( Linear Alkyl Benzene ) ? AOS ( Alfa Olefin Sulfonate ) ? Sulfuric Acid ? Glycerin ? Soda Ash ? Pure salt ? Vacuum Evaporated Iodized Salt ? SSP- Single Super Phosphate ? Sodium silicate
Products:Consumer ? Soaps ? Detergents ? Edible salt ? Scouring product ? Nirma shikakai ? Nirma shampoo ? Nirma toothpaste
Supply Chain of Nirma 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. Operates with two parallel distribution networks Principal Channel [Nirma Products]:
Lowest Cost system in India Speed in distribution Flexibility
Parallel Channel [Nima Products]:
Wider Reach Speedy Market Intelligence Competitive edge & Better focus Complementing Principal Channel
? ?
?
?
?
?
?
Nirma’s SWOT Analysis Strengths: Market leadership in detergents and fabric wash and second largest player in toilet soaps. Company has Wide distribution network. Weakness: High interest burden. Less presence in premium segment. Lacks global tie-ups and thus finding it hard to tap export markets. Opportunities: Acquisitions for strengthening its distribution tie-ups. Threats: MNCs coming, to India particularly in Toilet and Soap industry. Emergence of small but strong
?
?
• • • •
•
•
Business Unit Strength The horizontal axis of the GE / McKinsey matrix is the strength of the business unit. Some factors that can be used to determine business unit strength include: Market share Growth in market share Brand equity Distribution channel access Production capacity Profit margins relative to competitors
Industry Attractiveness The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following: •Market growth rate •Market size •Demand variability •Industry profitability •Industry rivalry •Global opportunities •Macroenvironmental factors (PEST)
Index of Business Strength
Strong
High Medium Average Nirma Weak
Market Attractiveness Index
Low
Thanks
doc_304654297.pptx