NIRMA A Project Report

Submitted in partial fulfillment of the Diploma of

PGDAM

Supervisor’s Name:-Student’s Name:-

Mr. Ritesh Arora Isam.S.Arshad Deepika Chauhan

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Year : 2008-2009

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CERTIFICATE

This is certify that the project entitled NIRMA

submitted to The NIS ACADEMY in an original work ,

carried out by Mr.Isam.S.Arshad, Ms.Deepika Chauhan under my

guidance.

This matter embodied in this project is a genuine work

done by the student and not has been submitted to this

on any other university for the fulfillment of the

requirement of any course of study.

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Supervisor’s Signature

PREFACE

The PGDAM program is well structured and integratedcourse of business studies. The main objective ofpractical training at PGDAM level is to develop skillin student by supplement to the theoretical study ofapplied management in general. The PGDAM programprovides student with a fundamental knowledge ofbusiness and organizational functions and activities,as well as an exposure to strategic thinking ofmanagement.

This project is the part of our curriculum , whichhelped us during making of this report , we got a lotof experience and came to know about the related

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field , which eve correlates the theoretical conceptand management practices in real that how it differsfrom those of theoretical knowledge and the practicallyin the real life.

It’s our sincere effort to make this projectmeaningful, compact and complete.

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ACKNOWLEDGMENT

It gives us immense pleasure and deep satisfaction in presenting this report on our project work as a part fulfillment of Diploma in PGDAM and has been an enriching experience for our group to undergo. As a student of THE NIS ACADEMY we would like to express oursincere thanks to all those who helped us during caringout the project work.Words are insufficient to express our humble and heartiest gratitude to Mr. Ritesh Arora our guide. His insistence right from the beginning of meticulously followingeach and every procedure involved in evolving a system,his constant Guidance and keen interest in the work while led to fulfilling the objective of this project. Our grateful thanks is also extended to all our facultymembers for the proper guidance and assistance extended by them to encourage & giving usMoral support. It also enabled us to acquire rich and valuable experience of developing real world application. We thank to almighty for showing us the correct direction in the project.However, we accept the sole responsibility for any possible error of omission and

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would be extremely grateful to the readers of this project report if they bring such mistakes to our notice.

Submitted by:-

Isam.S.Arshad

Deepika Chauhan

CONTENTS

INTRODUCTION COMPANY FLASHBACK ANNEXURE MARKETING MIX CURRENT MARKETING STRATEGIES OF NIRMA PRODUCT LIFE CYCLE MARKET SHARE

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S.W.O.T REPOSITIONING REASONS TO REPOSITION NIMA ROSE 30 DAYS IMAGE MAKEOVER OF NIMA ROSE

o NEW MARKETING STRATERGIESo PRE LAUNCHo LAUNCHo POST LAUNCHo CONTROL

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ABSTRACT

This paper describes Industry which is completed by groupof two students in the Department of “Management”. The caselet examines the entry NIRMA, formed in 1969. It isa group of companies based in the city of Ahmedabad in western India manufacturing products ranging from cosmetics, soaps, detergents and salt.. Karsanbhai Patel, a well known businessman, industrialist and philanthropist of Gujarat, India started Nirma as a one-man operation.. The caselet also examines how NIRMA used its customer relations practices to build customer loyalty and word-of-mouth awareness. Today Nirma has 14000 employees anda turnover of Rs. 2500 crores & in 2004, Nirma's annualsales touched 800,000 tonnes. The objective of the project is to put light on NIRMA and know companies growth in the necessary segments regarding PRODUCT, PRICE, PROMOTION, PLACEMENT. and also to calculate the market share of NIMA ROSE. This project also attempts the repositioningof the watch industry by using various marketing strategies. The project which is the subject of this paper originated from a real world application.

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METHODOLOGY

SECONDARY SOURCE

Internet

www.google.com

www.wikipedia.com

www.business-standard.com

www.quickmba.com

www.en.mimi.hu

www.nirma.co.in

www.fragranceneed.com

www.google.com

www.marketresearch.com

www.rapidlibrary.com

News Papers

THE ECONOMIC TIMES

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PRIMARY DATA

QUESTIONNAIRES\SURVEY

OBJECTIVE

By the end of this project you will be able to understand:

History of NIRMA and their marketing Strategies

Product life cycle of NIRMA. SWOT Analysis of NIRMA. Repositioning of brand NIRMA. Implementation of marketing strategies usedfor repositioning the brand.

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INTRODUCTION

Nirma is a group of companies based in the city of Ahmedabad in western India manufacturing products ranging from cosmetics, soaps, detergents and salt. Karsanbhai Patel, a well known businessman, industrialist and philanthropist of Gujarat, started Nirma as a one-man operation. Today Nirma has 14000 employees and a turnover of Rs. 2500 crores. In 2004, Nirma's annual sales touched 800,000 tonnes.

Founder of Nirma is Dr. Karsanbhai Patel, son of a small-time farmer and a qualified Science graduate. In 1969, the year he founded Nirma, Karsanbhai Patel was working as junior chemist in Government laboratory. In the night Karsanbhai used to make detergent in the 100 Sq. Ft. back yard of his home, using bare hands and bucket. In 1960s and 1970s, the domestic detergent market had only premium segment, with very few players and was dominated by MNCs. After making the detergent Karsanbhai used to pack it in polythene bag and sold itdoor-to-door. He priced the detergent at Rs. 3 per kg, when the available cheapest brand in the market was Rs.13 per kg. In a short span of time, with indigenous process, packaging and low-profiled marketing, Nirma created an entirely new market segment in domestic marketplace and quickly emerged as dominant market player. Nirma rewrote the marking rules and its successstory became one of the widely discussed case studies in the B-schools across the world.

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Nirma is one of the few names - which is instantly recognized as a true Indian brand, which took on mightymultinationals and rewrote the marketing rules to win the heart of princess, i.e. the consumer.

Nirma, the proverbial ‘Rags to Riches’ saga of Dr. Karsanbhai Patel, is a classic example of the success of Indian entrepreneurship in the face of stiff competition

In the 1980s Nirma catapulted Surf, which was a well-established detergent product by Hindustan Lever, and occupied the top slot in the detergent products segment-a slot it has made its own. In 1990, Nirma entered the toilet soap market and today it is the second largest toilet soap brand in India. Today, Nirmahas one of the largest volume sales with a single brandname

in the world.

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Company Flashback

In scorching heat of 1969, a son of small-time farmer was trying to mix Soda Ash and few other intermediaries, to make a detergent produce. He was a qualified Science graduate and was working as junior chemist in Government laboratory. As a moonlighting activity, he was making detergents in the 100 Sq. Ft. back yard of his home, using bare hands and bucket. Once the mixture is ready, he used to pack them in polythene bag and was selling door-to-door… Gradually, the product became well accepted in the consumer community, and the rest is known to one and all… This is a success saga of a first generation entrepreneur, on his way to create history in the Indian marketplace - that was Dr. Karsanbhai Patel.

In a short span, he captured the domestic market, with a quality product. He swiftly crafted low-to-medium consumer pockets – a whole new consumer segment for detergent category. He took on mighty multi-nationals and rewrote the marketing rules. In true sense, he spearheaded the market revolution by offeringinnovative, ‘value-for-money’ products, and changed thecloth-washing habit of Indian housewives - the revolution called …“Nirma”.

From initial days, Nirma believed in value-for-money equation, in creating and maintaining long-lasting relationships. It has always remained committed to

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offer better products, at better value, for better living…

Nirma is one of the few names - which is instantly recognized as a true Indian brand, which took on mightymultinationals and rewrote the marketing rules to win the heart of princess, i.e. the consumer.

Nirma, the proverbial ‘Rags to Riches’ saga of Dr. Karsanbhai Patel, is a classic example of the success of Indian entrepreneurship in the face of stiff competition. Starting as a one-man operation in 1969, today, it has about 14, 000 employee-base and annual turnover is above Rs. 25, 00 crores.

India is a one of the largest consumer economy, withburgeoning middle class pie. In such a widespread, diverse marketplace, Nirma aptly concentrated all its efforts towards creating and building a strong consumerpreference towards its ‘value-for-money’ products.

It was way back in ‘60s and ‘70s, where the domesticdetergent market had only premium segment, with very few players and was dominated by MNCs. It was 1969, when Karsanbhai Patel started door-to-door selling of his detergent powder, priced at an astonishing Rs. 3 per kg, when the available cheapest brand in the marketwas Rs. 13 per kg. It was really an innovative, qualityproduct – with indigenous process, packaging and low-profiled marketing, which changed the habit of Indian housewives’ for washing their clothes. In a short span,Nirma created an entirely new market segment in domestic marketplace, which is, eventually the largest consumer pocket and quickly emerged as dominating market player – a position it has never since

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relinquished. Rewriting the marketing rules, Nirma became a one of the widely discussed success stories between the four-walls of the B-school classrooms acrossthe world.

The performance of Nirma during the decade of 1980s hasbeen labelled as ‘Marketing Miracle’ of an era. During this period, the brand surged well ahead its nearest rival – Surf, which was well-established detergent product by Hindustan Lever. It was a severing batteringfor MNC as it recorded a sharp drop in its market share. 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.

Now, the year 2004 sees Nirma’s annual sales touch 800,000 tones, making it one ofthe largest volume sales with a single brand name in the world. Looking at the FMCG synergies, Nirma steppedinto toilet soaps relatively late in 1990 but this did not deter it to achieve a volume of 100,000 per annum. This makes Nirma the largest detergent and the second largest toilet soap brand in India with market share of38% and 20% respectively.

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It has been persistent effort of Nirma to make consumerproducts available to masses at an affordable price. Hence, it takes utmost care to provide finest products at the most affordable prices. To leverage this effort,Nirma has gone for massive backward integration along with expansion and modernization of the manufacturing facilities. The focal objective behind modernisation plan is of up gradation with resource-savvy technology to optimise capabilities. Nirma’s six production facilities, located at different places, are well equipped with state-of-art technologies. To ensure regular supply of major raw materials, Nirma had opted for backward integration strategies. These strategic moves allowed Nirma to manage effective and efficient supply-chain.

Nirma has always been practiced ‘value-for-money’ plank. Nirma plans to extend the same philosophy in

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categories as commodity food products, personal care products and packaged food. Distinct market vision and robust infrastructure allowed Nirma to have cost leadership. Apart from this, lean distribution network,umbrella branding and low profile media promotions allowed it to offer quality products, at affordable prices.

In present scenario, an inspiring 59-year-old persona, Dr. Karsanbhai K. Patel, leads Nirma, playing role of key strategic decision-maker, whereas his next generation has already skilled management capabilities.Shri Rakesh K Patel – a qualified management graduate, is spearheading the procurement, production and logistic functions, whereas Shri Hiren K Patel – a qualified Chemical engineer and management graduate, heads the marketing and finance functions of the organisation. Shri Kalpesh Patel, Executive Director, leads the professional organisational structure.

The man behind the success of Nirma phenomenon – Dr. Karsanbhai Patel is a recipient of various awards and accolades. He has been bestowed with various awards like…

Udyog Ratna by Federation of Association of Small-Scale Industries of Gujarat, New Delhi.

Outstanding Industrialist of Eighties by Gujarat Chamber of Commerce and Industry, Ahmedabad (in 1990).

Gujarat Businessman Award in 1998 by Gujarat Chamber of Commerce and Industry, Ahmedabad.

Excellence in Corporate Governance Award by Rotary International District 2000.

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A&M Hall of Fame.

Shri Karsanbhai has been awarded an Honorary Doctorate by Florida Atlantic University, Florida, USA in the year 2001 in recognition of his exceptional accomplishments as a philanthropist and businessman.

This world has also recognised his ability, acumen and wisdom and in recognition of the services rendered by him in his various capacities. Dr. Karsanbhai Patel hasalso served as a Chairman for two terms to the Government of India’s Development Council for soaps anddetergents, as a Member of Bureau of Indian Standards Committee for Soaps and Detergent Industries and President of Gujarat Detergent Manufacturers Association.

ANNEXURE

Board of Directors Chairman & Managing Director: Karsanbhai K Patel

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Executive Director: Kalpesh A PatelDirector: Shrenikbhai K LalbhaiDirector: Manubhai R ShroffDirector: Rajendra D ShahDirector: Atulya Prasad SarwanDirector: Rakesh K PatelDirector: Hiren K PatelAdditional Director: Kaushikbhai N PatelAdditional Director: Chinubhai R Shah

Dr. Karsanbhai Patel Chairman

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Marketing Mix

The marketing mix approach to marketing is a model of crafting and implementing marketing stratergies. It stresses the “mixing” or blending of various factors in such a way that both organizational and consumer (target markets) objectives are attained.

The most common variables used in constructing a marketing mix are price,promotion,product and place (also called distribution). First suggested by Jerome McCarthy (Jerome McCarthy, J. 1960), they are sometimes reffered to as the four P’s

Jerome McCarthy’s four P’s look at marketing from the perspective of marketer. It describes what variables marketers have to work with, and hence is sometimes reffered to as a marketing management prespective. This transformation is accomplished by converting Product into “customer solution”, Price into “cost to customer”, Place into “convenience”, and Promotion into “communication”. He calls these the four C’s

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Product

Price Promotion

Place

Product Variety

Price list Sales promotion Channels

Quality Discount Advertising Location

Design Financing Public relations Inventory

Features Scheme

Brand names Credit terms

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Marketing Mix

Services

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McCarthy identified the four P’s of the marketing mix :

Product defining the characteristics of your product or service to meet the customers’ needs.

Price: Deciding on a pricing stratergy.Even if you decide not to charge for a service, it is useful torealize that this is still a pricing stratergy. Identifying the total cost to the user (which is likely to be higher than the charge you make) is a part of the price element.

Promotion this includes advertising, personal selling (e.g. Attending exhibitions), sales promotion (e.g.special offers), and atmospherics (creating the right impression through the working enviornment).Public Relations is included within Promotion by many marketing people (though PR people tend to see it as a seprate discipline).

Place or distribution. Looking at location (e.g. ofa library) and where a service is diliverd (e.g. are search results delivered to the user’s desktop,office, pigeonhole- or do they have to collect them).

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Marketing Strategies ofNIRMA

Nirma is aptly considered as a marketing miracle andthis is reflected in the strength of the brand. . Basedon the pragmatic concept of 'Umbrella Branding', Nirmahas been increasingly successful in extending its brandequity to other product categories like PremiumDetergents, Premium Toilet Soaps. Nirma introduced‘Nirma Beauty Soap’ in the year 1992. Available inthree different variants and pack sizes, this soap hasa TFM, had achieved the status of the third largestselling toilet soap brand and still continues itsoutstanding performance.

MARKETING STRATEGIES OF A COMPANY INCLUDES THE FOLLOWING :

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PRODUCT STRATEGY PICING STRATEGY PROMOTIONAL STRATEGY PLACEMENT SRATEGY

PRODUCT

NIRMA provides a wide variety of products to its customers. They are as follows:

Soaps Detergents Edible Salt Scouring Products

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NIRMA Bathing Soaps

Nima Rose: The remarkable and phenomenal market responsereceived 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 content of 70%., this brand, within a short span of five years,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 ofits launch. Nirma offers nima rose bathing soap. Nima rose soap has got an exceptionally soft rose fragrance – which remains around body far a long time even after bath. The high tfm content of this product allows a customer to have pleasant bath.this brand has carved a niche in its segment by achieving leadership position just within two months of its launch . it is available in 100g and 150g pack sizes.

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PRICE

Nirma's toilet soap products are priced in therange of Rs 6-9. Nirma Lime Fresh, for instance,commands a price of Rs 8 for 75 grams, while NirmaPremium is priced at Rs 9. Nirma Bath, a popular soap,is priced at Rs 6. In comparison to Nirma's pricerange, HLL's toilet soap brands are priced at a slightpremium. LifeBuoy is priced at Rs 14, and LifeBuoy Goldat Rs 9. The price of Rexona is Rs 9.50, while that ofLiril, which competes with Nirma NIMA ROSE, is Rs 13.

Thus it is a well known fact that Nirma’s best Unique SellingProposition is Price

Comparative Price of Nirma and their competitors

Product of Nirma Price

(Rs.)

Nirma Lime Fresh 08

Nirma Bath Soap 06

Nima rose 11

Product of HUL PRICE

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Rs.)

Rexona 9.50

Lifebuoy 14

LIril 13

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DISTRIBUTIONIn its incipient days Karsanbhai Patel’s

distribution network and sales force was a one-manteam…..himself. Karsanbhai affected his deliveries ofwashing powder on foot. As the popularity of Nirma grewwith a spread of positive word-of-mouth Karsanbhaiadopted the time-honored Coco Cola maxim that hisproduct should be available within an arm’s length ofdesire. So he concentrated on widening his distributionnetwork; and Nirma began surfacing all over Gujarat, inscruffy little shops in even the remotest villages. Asthe product’s fame spread, agents from all over thecountry began writing in, and expressing theirwillingness to operate on the tiny margins that thebusinessman gave. Nirma has a 350 strong sales force, adistributor strength of 400 and a retail reach of over1 million outlets. When setting up a distributionsystem Karsanbhai was extremely aware of the importanceof keeping costs down. Nirma had neither a field salesforce nor owned a distribution network.

Nirma sells over 800,000 tones of detergentproducts every year. Nirma’s distribution reach andmarket penetration, through a country wide network of400 distributors and over 2 million retail outlets,making Nirma products available from the smallest ruralvillage to the largest metro.

The company has set up for Nima a paralleldistribution and sales channel consisting of 1500

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distributors and an independent sales force. A two-tiernetwork, the Nima distribution channel is 'flat'enabling swift market response. The company took greatcare that the new brand did not cannibalize on theexisting brands. The Nima portfolio today complementsthe Nirma range, furthering the company's strategy ofValue for Money

 

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PROMOTION Karsanbhai does not start up a media assault until

his entire distribution network has the product inplace. Nirma believes in advertising only after theyhave launched a product in place. Their belief is thatnothing can be more irritating for a customer than tosee a product advertised, and then find it has notreached his grocer. Advertising just tells people thata product is available. After that, the product has tostand on its own feet on quality and price.

As televisions reach spread in India during thelate 1970s so too did Nirma’s. The little girl on thepack became a symbol that was almost generic with agood quality, low-priced detergent. A catchy junglehammered home the message to millions of housewives. Itwas as if a down market consumer revolution had takenoff.

Nirma ad campaign, with its simple message and catchyjingle. By the early 80’s Nirma became synonymous withgood quality and low-price. The stockists were also

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responsible for promotions and they funded 50% ofpromotional expenditure for their goods. Nirma’s salesreached a rate of growth that was two to three timesthat of the industry in general. As a result of all theabove measures Nirma survived and flourished on whatlooked like a miniscule margin per unit.

With the increase the popularity of the T.V. Soaps and there amplified impact on their thinking and daily life, these serials have become an inseparable part of their lives. The new commercial has thus tried to encash on this very aspect. The commercial is a reflection of these soaps and in a way a mockery of these T.V. serials. Thus the commercial has been successful in attracting a substantial amount of the audience.

Product life cycle

The Product Life Cycle refers to the succession of stages a product goes through. Product Life Cycle Management is the succession of strategies used by management as a product goes through its life cycle. Product life cycle (PLC) is to do with the life of a product in the market with respect to business/commercial costs and sales measures .It

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consists of four stages:- Introduction ,Growth ,Maturity, Decline

The different stages in a product life cycle are:

1.Market introduction stage o cost high o sales volume low o no/little competition - competitive

manufacturers watch for acceptance/segment growth losses

o demand has to be created o customers have to be prompted to try the

product

2.Growth stage o costs reduced due to economies of scale o sales volume increases significantly o profitability o public awareness o competition begins to increase with a few new

players in establishing market o prices to maximize market share.

3.Mature stage o Costs are very low as you are well established

in market & no need for publicity. o sales volume peaks o increase in competitive offerings

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o prices tend to drop due to the proliferation ofcompeting products

o brand differentiation, feature diversification,as each player seeks to differentiate from competition with "how much product" is offered

o Industrial profits go down.

4.Decline or Stability stage o costs become counter-optimal o sales volume decline or stabilize o prices, profitability diminish o profit becomes more a challenge of

production/distribution efficiency than increased sales

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PRODUCT LIFE CYCLE OF NIMA ROSE SOAPIntroduction: Introduction is a period of slow sales growth as the product is introduced in the market. Profits are nonexistence in this stage coz of heavy investment in product introduction. NIRMA introduces NIMA ROSE SOAP in1992.

Growth: Growth is a period of rapid market acceptance and increasing profits. Growth of Nima rose soap startedwithin two months of introduction.

MATURITYMaturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits decline coz of increase marketing outlaysto defend the product against competition.IN NIMA it lies from 1992 97.

Decline: Decline is the period when sales fall off and profits drop. In nima soap it from 1997.

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MARKET

SHARE

In toilet soaps, HUL has a dominating 63% market share.Nirma has also garnered a significant 22% market sharein a short time. Other major players in the segment areGodrej Soaps and P&G.

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63%22%

15%

HULNIRMAOTHERS

ANALYSIS OF MARKET ACCORDING TO THE SURVEYCONDUCTED

According to the survey, conducted HUL’s product (lux,pears, dove etc)Has the maximum share of 80% ,while nima stands no where and others like Johnson & Johnson ,p&g has share of 20%.

S.W.O.T ANALYSISSWOT Analysis, is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a research project at StanfordUniversity in the 1960s and 1970s {using data from Fortune 500 companies}.

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Importance of S.W.O.T analysis

Strengths : attributes of the organization that are helpful to achieving the objective.

Weaknesses : attributes of the organization thatare harmful to achieving the objective.

Opportunities : external conditions that are helpful to achieving the objective.

Threats : external conditions those are harmful to achieving the objective.

First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective.

SWOT analysis groups key pieces of information into twomain categories:

Internal factors – The strengths and weaknesses internal to the organization.

External factors – The opportunities and threats presented by the external environment

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S.W.O.T ANALYSIS OF NIRMA

STRENGTH

Strong Brand equity. Nirma is a Rs.17 billion umbrella brand offering consumers a broad portfolioof products at multiple price points in the Detergents, Soaps & Personal Care market. 

Produces a range of industrial chemical products which primarily serve as raw material or intermediates for Soaps & Detergents business.

 Market leadership in detergents market and fabric wash industry .

Second largest player in Toilet soaps industry. Wide distribution network. Value for money proposition.

WEAKNESSES

High interest burden. Less presence in premium segment. Lack global tie ups and thus lacking in export

markets.

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Heavily dependent on old advertisements Not preferred by high income group.

OPPORTUNITIES Exports. Acquisitions for strengthening its

distribution tie ups. Entry into other categories like shampoos,

toothpastes and fabric whiteners. It is a part of FMCG industry which is really

growing at faster rate.

THREATS

MNCs coming to India particularly in Toilet and Soap industry.

Emergence of small but strong regional players. One of the major threat is Competitive strategies

of HUL. Perception of consumer

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REPOSITIONING

Repositioning is the process by which a product or service developed with one brand or company or product line affiliation is marketed or distributed with a different identity.

BRAND REPOSITIONING:-

Brand repositioning is required because of several reasons: When new offerings flood the market, the

superiority of the established brand has to be re-emphasised.

The established brands may not be able to offer either the same features or the variants that are being offered by the new brands (Ambassador and Robin Blue). Hence, there is a need for them to reposition themselves in a timely manner, relying more on the consumer goodwill they enjoy or by exploring ways to appeal to the consumers.

When a contemporary image is required in some categories because of changing psychographics.

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When brands desire to change their target segment (rarely) .

When brands want to communicate improved offerings. When motivation to buy products in the category is

low.

When products reach maturity they are well known. However, as competing products enter the market, matureproducts can begin to look old and tired. Action must then be taken to refresh the product’s image. Repositioning can create new appeal for existing consumers or attract new consumers. The table below summarises the major repositioning strategies:

WHY A COMPANY MUST REPOSITION A BRAND

Brand repositioning is necessary when one or more of

the following conditions exist:

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Your brand has a bad, confusing or nonexistent

image.

The primary benefit your brand "owns" has evolved

from a differentiating benefit to a cost-of-entry

benefit.

Your organization is significantly altering its

strategic direction.

Your organization is entering new businesses and

the current positioning is no longer appropriate.

A new competitor with a superior value proposition

enters your industry.

Competition has usurped your brand's position or

rendered it ineffectual.

Your organization has acquired a very powerful

proprietary advantage that must be worked into the

brand positioning.

Corporate culture renewal dictates at least a

revision of the brand personality

You are broadening your brand to appeal to

additional consumers or consumer need segments for

whom the current brand positioning won't work.

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We believe there are four key components to brand positioning:

Target consumer – the primary audience to whom the brand is designed to appeal

Brand essence – the “heart and soul” of thebrand

Brand promise – a promise of relevant differentiating benefits

Brand personality – adjectives that describe the brand as if it were a person

Together, these components define the brand. They are codified in a simple format that provides direction not only for marketing communication and the brand identity standards and systems, but also for all of the organization's activities.

A powerful brand position should be: Believable, understandable, unique and

compelling Aspirationally attainable Admirable and endearing Difficult to emulate Timeless and enduring Extendable

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REASONS TO REPOSITION OF NIRMA SOAPS

Market share of 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 shrinkingmarket 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, isnot enough to take on rivals, analysts sayThe 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 marketshare 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.

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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 inthe 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 crorein 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 inthe 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

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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 manufacturing detergents) and palm oil (another key ingredient in the manufacture of soap).“Also, the rivals have products across all price pointsto mitigate the input cost effect, while Nirma is available in only one plank—value for money,” he adds.Consumers are now shifting from economy brands to aspirational purchases and Nirma has failed to capitalize on this shift. Nirma has been continuing with the same advertising for years and now; even its visibility is on the decline on TV channels.

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30 DAYS IMAGE MAKEOVER OFNIMA ROSE

The plan for launching NIMA ROSE in today’s market listthe following steps in form of activities:

NEW MARKETING STRATEGIES AFTER THE REPOSITIONING OF NIMA ROSE SOAP

PRE LAUNCH ACTIVITIES

LAUNCH

POST LAUNCH

Karsanbhai Patel, a well known businessman, industrialist and philanthropist of Gujarat, started Nirma as a one-man operation. Today Nirma has 14000 employees and a turnover of Rs. 2500 crores. In 2004, Nirma's annual sales touched 800,000 tonnes. NIRMA company itself is very established company in market today, it wont need

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any external funding for relaunching its product which was at one time prestige for the company.Company will utilize 10 crores from its funds to relaunch Nima rose . Company will accept the sole responsibility for any possible error of omission during relaunching of the soap.Nima rose was leading the market after its launch in 1992 till 5 yrs

NEW MARKETING STRATEGIES AFTER THEREPOSITIONING OF NIMA ROSE SOAP

PRODUCT STRATEGY

NIRMA is introducing NIMA ROSE SOAP in new pattren.NIRMA will introduced its new product in different sizes of 175gm and 200gms in extremely new and enrichedpackaging with attractive shapes.Product will also be enriched with the more of ‘skin care’ ingredients.

PRICING STRATEGY

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NIRMA will introduced its NIMA ROSE SOAP at quantity based prices like ; 175gm Rs. 13200gm Rs. 16

This will help to attract the customers ,also it will compete with the pricing of p&gand other players.it will also take the market share from other players , which will help them to grow at a faster rate.

PLACEMENT STRATEGY

we will make our product everywhere in all the retail outlets no matter whether they are small or big like vishal,big bazaar etc. Our product will be available tothe customers through door-to-door selling and sales person will explain them the benefits of the product.

PROMOTIONAL SRATEGY

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Through media we will reinforce the brand name the mainpoints of product differentiation.

To attract market attention and encourage purchasing,we will offer different promotional schemes like buy 3get 1 free, or buy a nirma detergent and get 150 gmsoap free etc.

Will also introduce super saver scheme introducingspecial offers on super saver pack of nima rose withdiscount of 25% on family pack and 15% on regular pack.

Will provide the free samples tagged on other nirmaproducts and magazines .

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PRE LAUNCH ACTIVITIESNIRMA NIMA ROSE captured market within 2 month of its launch yrs back and the reason behind was sales promotion. NIRMA will invest more on its prelaunching to create awareness among the prospect public of its segment.

NIRMA will initiate Rs( 4 crores) on sales promotion campaign for 10 long days including 3 days for making acatchy advertisement.

NIRMA will initiate Rs. (3 crores) for ad campaign including 1 crore signing amount for Ms Asin to generate excitement for the product launch in autumn season .

Also a new brand ambassador( ASIN) will be endorsed forthe brand promotion of NIMA ROSE SOAP.

NIRMA will also make out some new advertisements and will update them regularly.

NIRMA will schedule 12 days creating awareness of NIMA ROSE relaunching in rural areas.

NIRMA will also improve the R&D department.

NIRMA will also conduct huge seminars in public places which will cost 25 lakhs in each city for 4 days,Costing 1 crore on seminars.

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LAUNCH ACTIVITIES

NIMA ROSE SOAP will be launched in autumns season on 23rd March.Grand launch will be held by NIRMA COMPANY for NIMA ROSE in Hyderabad. Karsanbhai Patel will be present on the launching ceremony of NIMA ROSE with ASIN.

NIMA ROSE will start an integrated campaigning through Radio/print/television media.

LAUNCHING of NIMA ROSE will cost 80 lakh.

POST LAUNCH ACTIVITIES

During post – launch Plan Company has to decide how toachieve the marketing objectives of company. Nima rose will be placed in market on 24th march.

As the multimedia advertising campaign continues, NIRMANIMA ROSE will add consumer sales promotion tactics like discounts and some interesting offers.

We plan to roll out a new national advertising campaignthis month. The TV ads will features celebrity using the New NIMA ROSE SOAP with skin care ingredients.

CONTROLLING

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NIRMA NIMA ROSE will keep a close watch on availabilityof NIMA ROSE in every area including rural areas. NIRMANIMA ROSE will also conduct survey after 1 month of itslaunch.NIRMA NIMA ROSE will also check out that the product isavailable at all the retail outlet whether small or big

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