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The Nirma Story!
Introduction
Nirma is a group of companies based in the city of Ahmedabad in western India that
manufactures products ranging from cosmetics, soaps, detergents, salt, soda ash, LAB and
Injectibles.
Karsanbhai Patel, a well known entrepreneur and philanthropist of Gujarat, started Nirma
as a one-man operation.
Today Nirma has over 15000 employees and a turnover of over Rs. 3550 crores. In 2004,
Nirma's detergent approached 800,000 tonnes one of the largest volumes sold in the
world under a single brand 'NIRMA'.
Mission Statement : - 'Better Products, Better Value, Better Living'
History
In 1969, Dr. Karsanbhai Patel, a chemist at the Gujarat Government's Department of Mining
and Geology manufactured phosphate free Synthetic Detergent Powder.
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 Ruppur (Gujarat), Patel's hometown.
He started packing the formulation in a 10x10ft 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.
By 1985, Nirma washing powder had become one of the most popular, household
detergents in many parts of the country.
By 1999, Nirma was a major consumer brand offering a range of detergents, soaps and
personal care products.
In keeping with its philosophy of providing quality products at the best possible prices,
Nirma brought in the latest technology for its manufacturing.
Nirma's success in the highly competitive soap and detergent market was attributed to its
brand promotion efforts, which was complemented by its distribution reach and market
penetration.
Nirma's network consisted of about 400 distributors and over 2 million retail outlets across
the country.
This huge network enabled Nirma to make its products available to the smallest village.
SWOT Analysis
Strengths :-
Strong brand equity. Nirma is a 17 billion umbrella brand offering consumers a
broad portfolio of products at multiple price points in the Detergent, Soaps &
Personal Care Market.
Market leadership in Detergent Market and fabric wash industry and second largest
player in Toilet Soap industry.
Wide Distribution Network
Competitive Prices
SWOT Analysis
Weakness :-
Less presence in Premium Segment.
Lack of Global Tie-ups and thus lacks in Export Markets
SWOT Analysis
Opportunities :-
Exports
Acquisitionsfor strengthening its distribution tie up
Entry into other categories like Shampoos, Toothpastes or Fabric Whiteners
SWOT Analysis
Threats :-
MNCs coming to India particularly in Toilet and Soap Industry
Emergence of Small but Strong Regional Players
Target Group
Middle and Lower Middle Income Segment.
Nirma tried to tap the huge market.
The objective is to convert the non user of detergents into users.
This product has created a loyal consumer base of its own and has established
substantial amount of volumes
Competitors
Major Competitors
Hindustan Unilever :
Rin, Surf, Wheel
Proctor & Gamble :
Ariel & Tide
Competitors
Analysis :-
Nirma's Strength has always been value for money
It has managed to defeat many MNCs with this policy
First brand to recognise the power of the Indian Rural Market
Strategy to Fight Competition :-
Offering premier products
Tie-Ups with foreign players
Mass Media to counter campaigns by competitors
Brand Positioning
Nirma found its place between the expensive detergents and inferior washing soap
slabs
Its positioned as..
Powerful Stain Remover which is Low on Cost
The Marketing Mix
Product: Environment-Friendly, Phosphate free Synthetic Detergent Powder
Price: Choosing price conscious segment as its market, Nirma offered a low price brand &
promoted aggressively. Nirma was priced at Rs. 3.50 per kg, at a time when HLL's Surf
was priced at Rs 15.
Place: NIRMA has a retail reach of over two million retail outlets 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 robust network ensures the
availability of various products at different retail outlets across the nation
Promotion: Nirma's advertising has always focused on the value-for-money angle. Its
simple and catchy jingle - Dudh si safedi Nirma se aye, rangin kapda bhi khil khil jaye -
has continued to echo in the drawing rooms of middle-class Indian homes through the
decades. While the jingle stresses on the product, it also salutes the savvy and budget-
conscious Indian housewife. The jingle, which was first aired on radio in 1975, was
broadcast on television in 1982. It is one of the longest running jingles and the spot has
seen very few changes
Conclusion
"Nirma is not merely a brand or a product, it is a dynamic phenomenon, a
revolution, a philosophy"
Nirma is aptly considered as a marketing miracle and this is reflected in the strength
of the brand.
Nirma has successfully challenged and changed the conventions of detergents
marketing and today leading business schools are analyzing it's strategies to
demystify this miracle.
Nirma's core marketing thrust revolves around prompting consumer trials by
offering a good quality product at most competitive price and retaining these new
consumers by continuously offering the same 'Value For Money' equation.
This is borne by the fact that today Nirma can boast of a strong brand loyalty from
its 400 million consumer base
Thank You!
