qwertyuiopasdfghjklzxcvbnmqw

ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopa
SUPPLY AND DISTRIBUTION OF
NIRMA
sdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghj
AASHISH KADEL
PGP FW 10-12
SEC C
klzxcvbnmqwertyuiopasdfghjklz
ROLL NO 16

xcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwerty
uiopasdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvbnmqwertyuiopas
dfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjk
 Supply Chain of Nirma

Nirma Limited markets its products through its fully owned

subsidiary Nirma Consumer Care Limited (NCCL), which
wasincepted in 1985. NCCL in turn resells these products in the
market under the umbrella brands “NIRMA” and “NIMA” along
with extensions.

The distribution strength of Nirma is based on mutually rewarding

and satisfying relationship.

Nirma pioneered the concept of flat distribution network. Nirma

Consumer Care Limited operates with two parallel distribution
networks.

The NIRMA brand is marketed through the first network, which

consists of about 450 exclusive distributors. It is one of the lowest
cost FMCG distribution channels of the country.

Principal Channel [Nirma Products]:

Lowest Cost System in India

Speed in Distribution

Flexibility
The NIMA range of products is marketed through a parallel
marketing network that comprises of more than 2000 distributors.

Parallel Channel [Nima Products]:

Wider Reach

Speedy Market Intelligence

Competitive Edge & Better Focus

Complementing Principle Channel

All NIRMA and NIMA range of products have a retail reach of over
two million retail outlets and more than 40 million loyal
consumers spread all over the country.

The Company has been successful in establishing an extremely

good urban as well as rural presence through the two distribution
channels.

The distribution channels have played a significant role in making

Nirma a household name. The efficient network has made Nirma
Washing Powder and Nirma Detergent Cake, the brands with
highest penetration in the respective product categories in the
market.

The network is well equipped to meet the demands of the loyal

consumers of the Company across the country. The robust
network ensures the availability of various products at different
retail outlets across the nation.
 Distribution
The Distribution channel is geared up to enhance trade relations,
build up the retailer base by providing various benefits and
incentives, organize and implement different activities to
generate sales and manage numerous other programmes,
schemes and activities concentrated towards business
development

In its incipient days Karsanbhai Patel’s distribution network and

sales force was a one-man team…..himself. Karsanbhai affected
his deliveries of washing powder on foot.

As the popularity of Nirma grew with a spread of positive word-

ofmouth Karsanbhai adopted the time-honored Coco Cola maxim
that his product should be available within an arm’s length of
desire. So he concentrated on widening his distribution network;
and Nirma began surfacing all over Gujarat, in scruffy little shops
in even the remotest villages. As the product’s fame spread,
agents from all over the country began writing in, and expressing
their willingness to operate on the tiny margins that the
businessman gave. Distribution is clearly the key to rural
marketing, which Nirma has pioneered over the years.

Nirma has a 350 strong sales force, a distributor strength of 400

and a
retail reach of over 1 million outlets. When setting up a
distribution system Karsanbhai was extremely aware of the
importance of keeping costs down.
Once demand for Nirmahad outgrown his ability to deliver on
bicycle he moved on to vans and then later to trucks. Nirma had
neither a field sales force nor owned a distribution network.
Karsanbhai negotiated prices with truck and van suppliers on a
daily basis.

As sales grew Karsanbhai eventually hired stockists (those who

stocked additional quantities of the goods) as commission agents.
On the one hand it helped him avoid central sales tax and the
stockists were responsible for all transportation, octroi, handling
and delivery costs.

There was also a strict system of protocol and distribution

depended on prepayment for stocks so as to minimize risk for
Nirma.

Nirma sells over 800,000 tones of detergent products every year

and commands a 35% share of the Indian detergent market,
making it one of the world’s biggest detergent brands.

The brand promotion efforts are complemented by Nirma’s

distribution reach and market penetration, through a country wide
network of 400 distributors and over 2 million retail outlets,
making Nirma products available from the smallest rural village to
the largest metro.

The company has set up for Nima a parallel distribution and sales
channel consisting of 1500 distributors and an independent sales
force. A two-tier network, the Nima distribution channel is 'flat'
enabling swift market response.

The company took great care that the new brand did not
cannibalize on the existing brands. The Nima portfolio today
complements the Nirma range, furthering the company's strategy
of Value for Money
Levels of Channel Distribution

step
1
company manufacturing
step
2
unit
step
3
consolidator
step
4
wholesaler
step
5
semi wholesaler
step
6
retailer
step
7
consumer