2. Indian Detergent Market Landscape
Detergent
Powder Bars Liquid
Detergent Market growing with a CAGR of 13.06% from last 5 years
Source : India Detergent Market Overview 2016-2021 - Research and Markets
3. Indian Detergent Market Landscape
1959 • HUL launched Surf Excel.
1969 • Nirma was launched.
1987 • RSPL launched Ghari.
1988 • HUL launched Wheel.
1991 • P&G launched Ariel.
2000 • P&G launched Tide.
Timeline:
4. Nature of the Monopolistically
Competitive Market
• Product Differentiation
• Large number of Firms
• Freedom of Entry & Exit
• Independent Behaviour
• Industries & Product Groups
• Falling Demand Curve
• Selling Costs
• Active Price Competition
• Non-Price Competition
5. Showing Category-wise Detergent Brands & the
Percentage of their Market Shares
Categories of
Detergents
Detergent
Brands
Market Share
Premium Ariel and Surf 15%
Mid-price Henko, Rin and
Tide
40%
Popular Wheel, Ghari,
Nirma & Mr.
White
45%
Source: https://www.ukessays.com
7. A Brief History of Nirma
• In 1969, Dr. Karsanbhai Patel started selling Nirma in Gujrat and went on to
sell it nationwide by 1985
• Targeting poor consumers, mostly in rural areas
• Low-cost manufacturing process, wide distribution network, special
packaging for daily purchasing & value pricing
• Nirma had a 15.2% share of the detergents segment & an 8.2% of soaps in
April 2006
• By June 2007, its market share had dipped to 13.5% in detergents & 6.74%
in soaps
• Company’s share price also fell 24%
• In December 2007,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 30th June, sales grew to Rs609.1 crore against
Rs525.5 crore in the same quarter last year, while the net profit fell 45%
quarter-on-quarter to Rs41.1 crore
Source: https://marketingbyvijay.wordpress.com
http://www.livemint.com/
8. HUL’s Change in Market strategy
(Post 1995)
• Change in business model
• Registered 20% growth in revenue/ annum
• 25% growth in profits/annum
• Market Capitalization grew by $12 billions
• Adopted the bottom of the pyramid as a
Corporate Strategic Priority
Source: https://marketingbyvijay.wordpress.com
9. Downfall of Nirma
• Lack of Innovation
• HUL was able to establish products in all
segments; Popular:Wheel , Mid-Priced: Rin
and Premium:Surf
• Lack of Advertising
• Lack of Product Differentiation
• Lack of Price Increase
11. Price Competition
Quantity MRP of
Nirma
( in Rs.)
MRP of
Ghari
(in Rs.)
MRP of
Wheel
(in Rs.)
500gms 25 26 32
1Kg 43 49/50 49
Source: www.weareopen.in
13. What Nirma could have done in order to
prevent the downfall
• Compete on Quality
• Strategic Positioning
• Attractive Advertising
• Co-operating Contributors
• Weightage in Packaging