Marketing Mix of Nirma Ltd, Procter & Gamble & Hindustan Unilever Ltd
Nirma detergent powder launched in the mid- Seventies at one-third the price of its competitor HLL’s Surf. It proved to be hugely successful. To counter Nirma, HLL brought in its own low-priced detergent powder called Wheel, which also emerged successful. Launching such low priced variants might mean diluting a premium brand’s quality and more importantly equity. MNCs are therefore wary of doing this.
Nirma products are usually priced at a lower rate while HLL uses mid range or high prices
Place, product & promotion:
The reach of Nirma and HLL is listed in the table. HLL promotes its products heavily leading to increased customer awareness and it also has a wider product range, which differentiates it from Nirma.
Hindustan Unilever Ltd
Flagship Brand – Surf
Positioning – Premium
Other brands – Rin, Wheel, Sunlight, OK, 555, Ala, Comfort
- Surf Excel has been positioned as detergent which has excellent stain removing capability. However surveys revealed that consumers worried that colored clothes might wear off faster due to regular use of such high powered detergents. HLL has therefore changed its advertising theme line from ‘ Surf Excel Hai Na’ to ‘ Daag Hataye, Rang Nahin’.
- HLL has adopted a flanking strategy with its brands catering to every customer segment. Rin and its variants cater to economy segment and premium segments. Wheel was launched to fight Nirma in the popular end of the market.
- Project Shakti
- Reinventing the distribution channel
- Health and beauty services like Lakme beauty Saloon & Ayush Therapy Centers.
Flagship Brand – Nirma
Positioning – Popular
Other brands – Nima, Super Nirma
- Nirma follows the ‘Value for Money’ strategy for all its products and both its brands cater to the popular segment of the market. Super Nirma, its brand in the high end of the economy segment is not a focus area for growth.
- Nirma follows the backward integration strategy to become the lowest cost detergent manufacturer in the world
- The company has set up a parallel distribution and sales channel for Nirma. This consists of 2000 distributors and an independent sales force. A two-tier network (as against the traditional three tier), the Nima distribution channel is ‘flat’ enabling swift market response
- Initiative to expand business in Bangladesh & Pakistan
- Nirma will employ effective marketing strategies & continue to reduce cost to counter increasing price competition
Procter & Gamble
Flagship Brand – Ariel Compact
Positioning – Premium
Other brands – Ariel Super Soaker, Tide
- Ariel is positioned in the premium category and is among the most expensive hand available in the Indian market. The company has launched mid priced brands like Ariel Super Soaker to cater to the lower income group consumer, which forms a significant potion of the Indian market.
- Tide prices have been slashed by 30% to Rs85 per kg. The company hopes that a semi premium price positioning will enable it to grow its market share, which has been stagnating since the last 2-3 years. The price reduction has been possible due to the company being able to save significantly on distribution costs through supply chain initiatives and a successful distribution-restructuring project called the Golden Eye
Surf Excel & Ariel
1.Surf was launched in 1959.
2.In 1996, Surf redefined this completely when it launched Surf Excel.
3.A pioneer in the Indian detergent powder market.
4.Surf Excel is available in 3 variants:
Surf Excel Blue
Surf Excel Quick Wash
Surf Excel Automatic
Various Schemes & Contests-
Benefits to Distributors & Retailers
1.Ariel was introduced in India in 1991.
2.Ariel gives you impeccable cleaning in stain removal.
3.Ariel contains unique ingredients that cannot be found in other detergents.
4.Ariel is available in 3 variants:
- Ariel Fresh Clean & Spring Clean
- Ariel Front-O-Mat
- Ariel Ultra-Magic
1.Tie-Up With Companies
2. Shiksha Programme
Tags: 4P's, 555, Ala, Ariel Compact, Ayush Therapy Centers, Comfort, Detergent Powder, Distribution Channel, Hindustan Lever Ltd, HLL, Integration Strategy, Lakme Beauty Saloon, Marketing mix, Marketing Project, MBA Projects, MNCs, Nirma, OK, P's, Place, Positioning, Price, Procter & Gamble, Product, project, Promotion, Rin, Shakti, Shiksha Programme, Sunlight, Surf, Tide, Wheel