INTRODUCTION
In the early 1970s, when Nirma washing powder was introduced in the low-income market, Hindustan Lever Limited (HLL)1 reacted in a way typical of many multinational companies. Senior executives were dismissive of the new product: "That is not our market", "We need not be concerned." But very soon, Nirma's success in the detergents market convinced HLL that it really needed to take a closer look at the low-income market.
Starting as a one-product one-man outfit in 1969, Nirma became a Rs 17 billion company within three decades. The company had multi-locational manufacturing facilities, and a broad product portfolio under an umbrella brand – Nirma. The company's mission to provide, "Better Products, Better Value, Better Living" contributed a great deal to its success. Nirma successfully countered competition from HLL and carved a niche for itself in the lower-end of the detergents and toilet soap market.
The brand name became almost synonymous with low-priced detergents and toilet soaps. However, Nirma realized that it would have to launch products for the upper end of the market to retain its middle class consumers who would graduate to the upper end.
The company launched toilet soaps for the premium segment. However, analysts felt that Nirma would not be able to repeat its success story in the premium segment. In 2000, Nirma had a 15% share in the toilet soap segment and more than 30% share in the detergent market. Aided by growth in volumes and commissioning of backward integration projects, Nirma's turnover for the year ended March 2000 increased by 17% over the previous fiscal, to Rs. 17.17 bn.
A HUMBLE BEGINNING
In 1969, Karsanbhai Patel, a chemist at the Gujarat Government's Department of Mining and Geology manufactured phosphate free Synthetic Detergent Powder, and started selling it locally. The new yellow powder was priced at Rs. 3.50 per kg, at a time when HLL's Surf was priced at Rs 15. Soon, there was a huge demand for Nirma in Kishnapur (Gujarat), Patel's hometown.
He started packing the formulation in a 10x12ft room in his house. Patel named the powder as Nirma, after his daughter Nirupama. Patel was able to sell about 15-20 packets a day on his way to the office on bicycle, some 15 km away. Thus began the great journey.
By 1985, Nirma washing powder had become one of the most popular detergent brands in many parts of the country. By 1999, Nirma was a major consumer brand – offering a range of detergents, soaps and personal care products.
The GDP/capita of Egypt is $3,314.46 USD (2013) while Canada’s GDP/capita is $51,958.38 USD (2013). Due to this major difference, to attract new consumers who are willing to buy this product in Egypt, we must decrease the price to a more suitable price for the people living in Egypt. First off, the cost of production will rise to $8.97 due to the 20% tax on goods, as well as the 30% tariff rate. We will decrease the price of the Purifer to $10.00 CDN, but we will market the Purifer in a way that the population of Egypt see this product as a need instead of a want. We will talk about how this product can end the bacteria in the contaminated water, and can protect the population of Egypt. Using this as a marketing campaign, our brand will be known in the country, thus resulting in a mass number of sales. However, since we are only making a $1.00 CDN revenue/ sale, we won’t be making a huge net profit. After 2 years, we believe our product will be extremely popular in Egypt as well as most parts of the African continent. We will slowly increase the price by a $1.00 CDN every year. Since our product is a package of 25 tablets, people will always be coming back to buy more of our product. This will result in huge amounts of profit as the years go
Purpose: To identify the mystery powder based on its physical and chemical properties, comparing them to the five substances and which one matches. The chemical reactions with water, universal indicator, vinegar and Iodine solution are then analyzed and matched with each other to determine the mystery powder.
...ons to attract people that are unaware of the product. They can also opt to do what they have always done, because the product is successful. To take the do-nothing approach is dreadful, because the competition is out there lurking, just waiting for CNS to rest on their laurels.
In this instance the government regulation to keep the school safe is interfering with Rajiv’s fundamental freedom of conscience and religion stated in section 2 of the charter, and it is doing so unjustly. While the information given in the story was scarce, there were no reports of a Kirpan being used a weapon before, any problems with weapons, or any attempt to find an alternative instead of disallowing the Kirpan completely . In the case Multani v. Commission scolaire Marguerite-Bourgeoys The Supreme Court of Canada decided that the decision to prohibit the wearing of a Kirpan to be a violation of one’s fundamental freedom. This is important because a precedent has been set by the Supreme Court of Canada. After the Multani v. Commission scolaire Marguerite-Bourgeoys case the court decided that if that given the premise a student has not used the Kirpan as a weapon before, and sincerely believes that a metal Kirpan is essential in paying respects to their religion, it is within their rights to wear one. This important as it proves that the government regulation seized Rajiv’s Kir...
When people go shopping there are limitless choices of one product made by different companies, all choices of this product basically do the same thing, but what makes them different is the brand’s name. Companies with brands are trying to get their consumers by presenting their commodities in ways
The advertisement alone may not make an appeal to any situated ethos, but given that NyQuil is owned by Proctor & Gamble, the name alone carries a huge reputation. Most people know that Proctor & Gamble is one of the top companies in the world.
In 1894, Johnson & Johnson launches maternity kits to make childbirth safer for mothers and babies. JOHNSON'S® Baby Powder goes on the market. Its success leads to the Company's heritage Baby business.
Founded in 1886 by introducing medicinal plasters and antiseptic surgical dressings, Johnson & Johnson has grown to be one of the leading health care products company in the world. In its extensive history of over 125 years Johnson & Johnson’s product mix vary from pharmaceutical, personal care products, medical devices and diagnostics with the largest being pharmaceuticals.
L’Oreal is the largest beauty company in the world and in the past 100 years that it has expanded, it has supplied to 130 countries with offices in 58 different countries. This global company is the number one premium cosmetic product in the world today and has taken the core and beauty of people’s everyday lives since 1907, the beginning of L’Oreal. The superior leadership of a guy named Eugene Schueller started this strategic company with basic products such as hair care and also the first man-made hair color product. Five years later you could find these products in Austria, Italy, and the Netherlands. In 1934 Eugene invented the first mass market of soap less shampoo and this led the success of L’Oreal in the country of Europe which soon recognized them as the leader in body care and hair coloring products. Finally soon after World War II L’Oreal moved into the United States and the company seemed to change. When L’Oreal expanded the competition was more involved and more growth was needed in order for the company to be more successful. With problems like this, the strategy and planning that has been applied in L’Oreal has been huge for the success of the company. L’Oreal realized they needed to expand in other fields of the beauty market and target markets in order to stay alive and successful. This would mean that L’Oreal would need to acquire other companies as part of their expansion and through this they have kept the constancy of the leading company with acquisitions of many small companies. Finally in the 1980s they started their globalization into new markets all around the globe by acquiring new companies that would form the cosmetics that we know today. Although the role of acquisitions has never been the main focus of the company, internal growth and strategy was the number one reason for L’Oreal becoming such a big name. The main strategy was to adopt new companies and expand it from within believing that the brand could be taken globally and benefit their overall brand portfolio. The main role of acquisitions was to increase and lengthen the internal growth rate. L’Oreal started acquiring companies from the beginning of their name. They started with the basics of their own brands such as L’Oreal Professional, L’Oreal Paris, Kerastase, and Club des Createurs de Beaute.
CASE 1-3: Coke and Pepsi Learn To Compete in India The political environment in India proved critical in that their government was unfavorable to foreign investors. They prohibited the import of soft drinks since they felt it could be gotten anywhere. They also prohibited the foreign brand name and wanted the name Lehar Pepsi and Coca-Cola India, an indigenous name. These effects couldn’t have be anticipated prior to entering the market because the trade policies, rules and regulations of India were difficult and unpredictable.
L’Oreal was started in 1907 by French chemist, Eugene Schueller, who developed the world’s first synthetic hair-color product, L’Aureole. By 1912 his hair products were sold in France, Netherlands, Austria and Italy. In the mid-1930s, Schueller moved into the hygiene and toiletry sectors of the cosmetic market with great success. L’Oreal soon earned the reputation as the leader in European hair coloring and skin care products.
To predict the performance of any product it is necessary to know about its ingredients. It will not only help in analyzing the product. But will also be helpful in predicting its performance. Following are the ingredients used in composition of Nuage Skin:
The product will have an introductory price of $xx wholesale/ $4 retail price (24 RMB). For the second year we expect to lower the price by acquiring local suppliers and expanding our product line. We hope to reflect the impact of the strategy by acquiring market share from other companies with other alternatives.
They attempt to implement responsible sourcing within their supply chains, raise awareness of both water conservation and help to preserve natural capital. To do this they promote global transparency, and voice their engagement in climate policy. Nestlé’s labor practices consistently address human rights impacts in their operations and supply chains. Additionally, Nestle works towards enhancing the gender equality in the developed global offices. One example of Nestlé’s influence on their sourcing practices can be seen in Nigeria where infrastructure was few and far between and traditional delivery methods could not be achieved due to safety reasons to compensate nestle set their purchasing prices high as well as creating a multitude of small ware houses rather than the typical individual large ware house. They also adjusted their marketing scheme rather than posting to various forms of media as they would do in a developed country, they instead hired local singers and dancers to travel to different villages advertising the Nestle products in a way that would appeal to the different
Mustela founded by Paul Berthomé in 1950 who is father of the present chairman. He founded the Expanscience Laboratories by collaborating with a pharmacist. They started conversing with mothers and analyzing the market for babies and the result of research they found that there was any soap specific for baby skin. Soap could be hard the babies’ skin which is delicate, so it was an opportunity for Paul to present a 2-in-1 soap free product for babies. The 2-in-1 soap free had cleansing and softening properties, and it was the first cleanser for babies in Europe that was designed specifically for them (Mustela, 2015).