brand extension of nirma
TRANSCRIPT
Product Extension Analysis
Submitted By:Garima Vishal
(PGP30311)Section A
Mail Id: [email protected]
Submitted To:Sameer Mathur, Ph.D. (Carnegie Mellon
University)Marketing Professor (IIM
Lucknow)
Content• Company Overview
• Timeline for Nirma
• Product Portfolio and contribution in share of sales
• Indian Salt Industry
• Nirma Shudh Salt
• Marketing Mix
• Market Target Segment
• Business Strategy
• Promotional Strategy
• Consideration Set for Consumers
• Competitive Frame of Reference
Company ReviewOne of the largest & most integrated
manufacturer of detergent and toiletries
Largest player of the Indian Detergent Market with a share of 38%
Second largest toilet soap marketer of the country with a share of 20%
Source: http://www.nirma.co.in/images/comimg/corp_presentation.swf
1969-1985 Innovation, creation & Foundation
1986-2004 Expansion, extension & Consolidation• Value For
Money Concept
1985 Line extension Nirma Detergent Cake (2nd product of Nirma)
1990 Nirma Super Detergent was launched• Umbrella
Branding adopted
2000 Nirma Shudh edible salt launched
Timeline for Nirma
Product Portfolio
Detergent Toilet SoapsPackaged Food: Iodized SaltIndustrial Products
Product share based on sales
31%
31%
13%
12%
10%
2%
1%
% Share of product portfolioDetergent
Soda Ash
Others
Soap Toilet
Pharmaceutical
Traded Goods
Refined Sodium Bicarbonate
Source: GMID, IIML Library
Salt Industry Review
India Food Additives Market to Register
Growth at Over 12% CAGR by
2020
India is the third largest
salt producing country in the world (after the US and
China)
About 15 lakhs tones of salt is exported every
year
Salt production expected to
increase to 40 mt by 2020
Nirma Shudh Salt
Asia’s largest salt works spread over 30K acres
Daily 3 lacs plus units of Nirma Shudh salt are sold
Industrial Salt Capacity 15,00,000 TPA
Edible Salt Capacity 288,000 TPA
Human contact free process from water to packaging
Source: http://www.nirma.co.in/images/comimg/corp_presentation.swf
Promotion • Spends 2% of
sales
Place• Mainly rural and sub
urban places • Targeting Middle
class family
Price • INR 10 per kg• Competitor Tata Salt INR
18 per kg• Dandi Salt INR 10 per kg
Product• Vacuum evaporated• State of art methodology• World-class Akzo Nobel
technology
Nirma Shudh Salt
Print Media
Television Ad
Word of mouth
Marketing Mix
•Middle class family•Low to medium income group
Demographic
• Mainly Rural and Sub urban locations
• Initially in Gujrat then expanded nationally
Geographic
•Family searching for “value for money”
Behavioral
Market Target Segment
Business Strategy
Value For
Money
Marketing &
Distribution
Market Creation
Backward Integratio
n
Umbrella Branding
Parallel Distributio
n
Product Innovatio
n
Economies of Scale
Business Idea
Positioning of the Brand
Promotional Strategy
Press25%
Television35%
Cinema20%
Radio15%
Outdoor5%
Advertisement Expense
Press Television CinemaRadio Outdoor
• Markets through subsidiary Nirma Consumer Care Limited (NCCL)
• Strong distribution channel• Significantly strong trade relations by
providing various benefits and incentives
• Regularly organize and implement different activities to generate sales
Trade Promotion
Customers’ consideration set for salt
• Dandi Salt: Only other brand which uses same technology as used by Nirma
• Tata Salt: Biggest player in India with market share of 36%
• Other competitors:
– Captain cook
– i-shakthi
– Aashirvadh
– Annapurna
– Surya salt
– Sambhar salt
Competitors in Indian Market
Tata Salt37%
Annapurna34%
Captain Cook8%
Dandi1%
Nirma Shudh 1%
Natural Fresh0%
Others19%
% share of different brands in Indian Market
Tata Salt Annapurna Captain Cook DandiNirma Shudh Natural Fresh Others
POPPOD
• Edible salt • Iodized • Saltiness• Whiteness
• Vacuum drying process • Free from any manual
handling• Free flow nature• Equal size of the granules
Competitive Frame of Reference
Superior Quality of ProcessState-of-art methodology
References
1. http://www.superbrandsindia.com/images/brand_pdf/consumer_1st_edition_2004/nirma/nirma.htm
2. http://www.nirma.co.in/salt.htm
3. http://www.tradeindia.com/fp236791/Nirma-Shudh-Iodized-Salt.html
4. http://www.nirma.co.in/images/comimg/corp_presentation.swf
