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    Nirma: Borges Aaron Francis Ashish Chirag Caroline

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    Chirag Shah
    Nirma is an Indian FMCG company founded in 1969 and headquartered in Ahmedabad, Gujarat. It produces detergents, soaps, and personal care products. Nirma entered the detergent market with a price-led strategy, offering products at lower prices than competitors to gain market share. This strategy was successful, and Nirma became a market leader in detergents in India. It maintains its position through widespread distribution and targeting of price-conscious, rural consumers.

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    Nirma: Borges Aaron Francis Ashish Chirag Caroline

    Uploaded by

    Chirag Shah
    2K views9 pages
    Nirma is an Indian FMCG company founded in 1969 and headquartered in Ahmedabad, Gujarat. It produces detergents, soaps, and personal care products. Nirma entered the detergent market with a price-led strategy, offering products at lower prices than competitors to gain market share. This strategy was successful, and Nirma became a market leader in detergents in India. It maintains its position through widespread distribution and targeting of price-conscious, rural consumers.

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    Nirma is an Indian FMCG company founded in 1969 and headquartered in Ahmedabad, Gujarat. It produces detergents, soaps, and personal care products. Nirma entered the detergent market with a price-led strategy, offering products at lower prices than competitors to gain market share. This strategy was successful, and Nirma became a market leader in detergents in India. It maintains its position through widespread distribution and targeting of price-conscious, rural consumers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views9 pages

    Nirma: Borges Aaron Francis Ashish Chirag Caroline

    Uploaded by

    Chirag Shah
    Nirma is an Indian FMCG company founded in 1969 and headquartered in Ahmedabad, Gujarat. It produces detergents, soaps, and personal care products. Nirma entered the detergent market with a price-led strategy, offering products at lower prices than competitors to gain market share. This strategy was successful, and Nirma became a market leader in detergents in India. It maintains its position through widespread distribution and targeting of price-conscious, rural consumers.

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    of 9

    NIRMA

    By:
    BORGES AARON FRANCIS
    ASHISH
    CHIRAG
    CAROLINE
    Profile

    Type: Public Company

    Industry: FMCG

    Founded: 1969

    Headquarters: Ahmedabad, Gujarat

    Key People: KarsanBhai Patel

    Products: Nirma Detergent and Soap etc

    SWOT Analysis

    Strength:
     Strong Brand equity. Nirma is a Rs.17 billion umbrella brand offering
    consumers a broad portfolio of products at multiple price points in the
    Detergents, Soaps & Personal Care market.
     Produces a range of industrial chemical products which primarily serve as
    raw material or intermediates for Soaps & Detergents business.
     Market leadership in detergents market and fabric wash industry and second
    largest player in Toilet soaps industry.
     Wide distribution network.

    Weakness:
     Less presence in premium segment.
     Lack global tie ups and thus lacking in export markets.

    Opportunities:
     Exports.
     Acquisitions for strengthening its distribution tie ups.
     Entry into other categories like shampoos, toothpastes and fabric whiteners.

    Threats:
     MNCs coming to India particularly in Toilet and Soap industry.
     Emergence of small but strong regional players.
    Competitor Analysis

    HUL:Surf ,Rin & Wheel


    P& G: Ariel & Tide
    Henkel spic: Henko and Mr White

    Analysis:

    Nirma`s Strength has always been value for money.


    It has managed to defeat many MNC with this policy.
    First Brand to recognize the power of the Indian rural market.

    Strategies to Fight Competition:

    By offering premier products


    Tie-up with foreign players
    Using mass media to counter smearing campaigns by competitors.
    New style of packing .

    Pricing:

     Price Based Marketing Strategy


    Nirma entered the detergent market of India at a time when Hindustan Lever
    Limited (HLL), an FMCG giant, with its Surf, had established a near
    monopoly in the business. Nirma succeeded through its price-led strategy.

     Cost Leadership
    Nirma had built cost leadership right from the beginning. It was this cost
    leadership built early on that enabled Nirma to follow the price-based
    marketing strategy. Choosing the price conscious segment as its market,
    Nirma Chemicals offered a low price brand and promoted it aggressively. It
    relied on low cost technology, process and raw materials

    Note: Nirma’s price-led strategy was so successful that even the market
    leader, who was all along following the differentiation-led route, was forced
    to review its strategy.
    Target Audience for Nirma

    Mass Marketing - Nirma tried to tap the huge market. It is also a one-type of
    value product to the brand loyal consumers, catering their distinct needs. The
    product is stable, offers best quality at the most affordable prices.

    Concentrated Marketing – It has always concentrated on the smaller segment of


    markets, Due to its unique formulation, this product offers benefits like less
    melting in water, better stability, and therefore lasts longer. As per the ORG-
    MARG Rural Consumer Panel [December 1998] survey, Nirma brand is ranked
    highest in terms of penetration in washing cakes / bars category [BT Rural Market
    Watch, Business Today, June 22, 1999].

    Pricing Prospective - To cater to the needs of the specific target audience, Nirma
    launched a good quality product at a very affordable price. The objective is to
    convert the non-users of detergents into users and also prevent the competitors and
    local manufacturers to lure away the prospective Nirma consumers by sub-standard
    products. This product has created a loyal consumer base of its own and has
    established substantial amount of volumes.
    Segmentation - Demographics and Psychographics

    Demographic segmentation: In demographic segmentation, the market is divided


    in to groups on the basis of variables such as age, family size, family life cycle,
    gender, income, occupation, education religion, race, generation, nationality and
    social class.

    Income: Income determines the ability of consumer to participate in the market


    exchange and hence this is a basic segmentation variable. Nirma washing powder,
    for example, was launched as the lowest priced detergent in India primarily
    targeted at the middle-income segment of the market.

    Social Class: Social class has a strong influence on preference in clothing,


    therefore to maintain it detergent will also be a preference.

    Psychographic segmentation: psychographic is the science of using psychology


    and demographics to better understand consumers. In psychographic segmentation,
    buyers are divided in to different groups on the basis of psychological, life style or
    values .People within the same demographic group can exhibit very different
    psychographics profile. Values and lifestyles significantly affect the product and
    brand choices of consumers. Religion has significantly influence on values and
    lifestyles.

     Detergent powders were considered as luxury products in late 60’s, Nirma


    with its unique price made it a easily accessible for the masses, providing a
    luxury segment in market at a low cost.
     Clean washing: The advertisement shows the Nirma girl and other actors in
    advertisements always in white.

    Brand Positioning for Nirma


    Nirma found its place between the expensive detergents and inferior washing
    soap slabs.

    The Nirma brand was quickly recognized in Gujarat and neighbouring parts of
    Maharashtra and the rest is history.

    It is positioned as a powerful stain remover which is low on cost.

    Due to its unique formulation, this product offers benefits like less melting in
    water, better stability, and therefore lasts longer.

    As per the ORG-MARG Rural Consumer Panel [December 1998] survey,


    Nirma brand has been ranked as highest in terms of penetration in washing
    powder category [BT Rural Market Watch, Business Today, June 22, 1999].

    The below points are important to understand the positioning strategy


    applied by Nirma -

     Value for Money concept


     converted a luxury product into a bare necessity product
     Rural Focus – Identified markets where others saw none
    achieved penetration where others felt consumer mindset Could not be
    changed

    Promotion strategy of Nirma


    • 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. It’s simple and catchy – “Dudh si safedi Nirma se aye,
    rangeen kapda bhi khil khil jaye”

    • Nirma spent only 1.25 - 2 % of its turnover on advertising as of 6 – 10 %


    likewise other FMCG companies.

    • In 2009 Nirma wakes up and decides to undergo a personality transplant. A


    whopping Rs 1.5 crore is spent on that thought.

    • A brand has to constantly refresh its communication, Now, Nirma is back


    to talking about the dirt tackling properties of the detergent, as well as use
    the legendary 'Washing powder Nirma' jingle.

    Distribution Strategy of Nirma


    Nirma Limited markets its products through its fully owned subsidiary Nirma
    Consumer Care Limited (NCCL), which was incepted in 1985. NCCL in turn
    resells these products in the market under the umbrella brands “NIRMA” and
    “NIMA” along with extensions.

    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:

    • 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:

    • Wider Reach

    • Speedy Market Intelligence

    • Competitive edge & Better focus

    • Complementing Principal 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 house-hold 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. 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.

    FACT - AIMS survey ranked Nirma detergent cake as “The Most widely
    distributed detergent cake brand”.

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