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A Gujarati entrepreneur, Dr. Karsanbhai Patel, set up his first detergent-making unit in the backyard of his home in Ahmedabad - measuring all of 100 square feet.
With bare hands and a bucket, he would prepare the dry mix detergent powder that he had invented, pack them in polythene bags and then set off on his bicycle to sell the packets door to door.
Every packet of Nirma that Karsanbhai Patel sold to his consumers came with a money back guarantee.
The cost-conscious approach of the initial years was to evolve into a strategic perspective.
Nirma was setup with Simple Yet Superior Marketing Strategy Product Positioning: Nirma found its place
between the expensive detergents and inferior washing soap slabs. The Nirma brand was quickly recognized in Gujarat and neighboring parts of Maharashtra and the rest is history.
Pricing: Nirma transformed the face of Indian detergent market by staging the strength of low-cost detergent powder segment. The new yellow powder was priced at Rs. 3 per kg, at a time when HLL's Surf was priced at Rs 13.
Distribution: Nirma targeted non-users of Surf thus avoided the attention of HLL and later grew rapidly and was unstoppable once it was in the right mode.
Nirma vs. Hindustan Lever Nirma took on the might of giant multinationals and
wrote a new chapter in the Indian corporate history
In the early 1970s,Hindustan Lever Limited (HLL) reacted in a way typical of many multinational companies. Senior executives were dismissive : "That is not our market", "We need not be concerned."
In the 1980s Nirma catapulted Surf, and occupied the top slot in the detergent products segment-a slot it has made its own
In fact, it was Nirma that inspired the birth of Surf’s Lalitaji.
HHL soon recognized the disruptive threat posed by Nirma and introduce substitutes such as Wheel to stem the tide of Nirma
The sheer size of the operations makes it difficult to maintain the highly centralized style of running that has always been characteristic of Nirma.
Nirma also faces intense competition from the small sectors, which was its initial launch-pad.
Since transportation costs are a very crucial part of costing many manufacturers are locating their factories as close as possible to their eventual sales points so as to save on transport costs.
Nirma could well lose out soon on its best Unique Selling Proposition-price.
Nirma followed its original marketing and pricing strategies in both economy and premium segment.
Launched product categories like premium detergent and premium toilet soaps in mid nineties and in 2000 entered hair market like nirma shikakai, nirma beauty shampoo.
Challenged the biggest competitor, HLL by launching nirma bath against lifebouy, nirma rose against breeze and nirma lime against lime.
Manufactured soaps with right scents keeping prices low.
Geographical diversity – Pink soaps in north, Green and sandal soaps in south.
Nirma believes in advertising only after they have launched a product in place.
Nirma's advertising has always focused on the value-for-money angle.
In 1982 we witnessed the birth of the first film for the brand, with the effervescent jingle. Its simple and catchy – “Dudh si safedi Nirma se aye, rangeen kapda bhi khil khil jaye”
In 1989 the second commercial featured the superstar of those days, Sangeeta Bijlani, along with models such as Shikha Swaroop and Anuradha Patel. Used starlets like, Sonali Bendre and Riya Sen for their beauty soaps
In 2005 a little change from its predecessors – this was the food throwing ad (Hema, Rekha, Jaya, Sushma). It lent names and profiles – to Nirma housewives
The jingle being a part of Nirma’s communication,was rarely tweaked with the swirl of Nirma girl in a frock on the pack shot.
Gross sales over 2400 crores. ROCE of 24 % and RONW 22 %. 8 manufacturing locations. Amongst top 10 Indian Brands. Nation wide Distribution reach. - 2500 Distributors - 2000000 Retailers - 40 Depots\ Strong human resource base consisting of 15000 employees and 500 professionals.