The 'Nirma' success story of how an Indian Entrepreneur took on the big MNCs and rewrote the rules

of business :

It was in 1969 that Dr. Karsanbhai Patel started Nirma and went on to create a whole new segment in the Indian domestic detergent market.During that time the domestic detergent market only had the premium segment and there were very few companies , mainly the MNCs , which were into this business.

Karsanbhai Patel used to make detergent powder in the backyard of his house in Ahmedabad and then carry out door to door selling of his hand made product. He gave a money back guarantee with every pack that was sold. Karsanbhai Patel managed to offer his detergent powder for Rs. 3 per kg when the cheapest detergent at that time was Rs.13 per kg and so he was able to successfully target the middle and lower middle income segment.

Sabki Pasand Nirma...

Nirma became a huge success and all this was a result of Karsanbhai Patel's entrepreneurial skills. Karsanbhai Patel had good knowledge of chemicals and he came up with Nirma detergent which was a result of innovative combination of the important ingredients. Indigenous method was used, and also the detergent was more environmentally friendly.

Consumers now had a quality detergent powder, having an affordable price tag. The process of detergent production was labour intensive and this gave employment to a large number of people. Nirma focused on cost reduction strategies to make a place for itself in the market. Nirma has always been known for offering quality products at affordable prices and thus creating good value for the consumer money.

In the 1980s nirma moved ahead of Surf, a detergent by HLL, to capture a large market share. Later, Nirma successfully entered in the premium segment of soaps and detergents. Nirma went on to become the largest detergent and the second largest soap company in India. Nirma had more than 35% market share in the detergent segment and around 20 % market share in the toilet

soap segment. The company got listed on the stock exchanges in the year 1994.

The Marketing Strategy of Nirma:

As Nirma started to grow and the salesmen started to reach out to the retailers, who were working with multinational brands till then, did not pay attention and used to take the stock on long credits and as a special favour. As and when the salesmen would go asking for the payment either he will be shown the door or may be offered a part payment even in the condition that the total material was sold. To the insisting ones they will give the material back asking them not to show up again. This carried on for some time and there was huge accumulated credit in the market making it difficult for the Nirma to operate. This is when Karsanbhai said enough was enough and called the entire team one day and decided on a drastic step which was risky but revolutionary. Karsanbhai was realizing the power of advertising and promotions which made him take this step.

The day after the meeting all the team member went out in the market and collected either cash or material. Next day on retailers were shocked, competition was dazed and market was without Nirma. For full one month the media was carpet bombed with the campaign WASHING POWDER NIRMA, WASHING POWDER NIRMA, DOODH SI SAFEDI......

Now what this did was kick start the consumer demand. People started asking for Nirma but it was not to be found. When the demand reached its peak then the Retailers started to look for Nirma. This is what Karsanbhai was waiting for.

One fine day the team was called for another meeting and Delivery vans were cleaned, material loaded and NIRMA hit the market again. Now Nirma was dictating terms. All cash on delivery, no credits and tight supply. Overnight the brand was changed and within no time gave a fantastic fightback to the leading global brands.

The best case of - Give your consumer what he wants, when he wants, where he wants and at the price he wants, selling will be done quite automatically. This is the marketing 'mantra' of Nirma.

Nirma adopted backward integration strategy for the regular supply of raw materials,90 % of which they manufacture themselves.Nirma also gave due importance to modernization ,expansion and upgradation of the production facilities.The company also made sure that it uses the latest technology and infrastructure.

As far as Corporate social responsibility (CSR) is concerned, Nirma has made some good efforts by starting Nirma Education & Research Foundation (NERF) in the year 1994 for the purpose of running various educational institutes.Nirma has also set up Nirma labs , which prepares aspiring entrepreneurs to effectively face the different business challenges.Nirma also runs Nirma Memorial Trust, Nirma Foundation and Chanasma Ruppur Gram Vikas Trust as a part of their effort as a socially responsible corporate citizen.

The company that was started in 1969 with just one man who used to deliver his product from one house to the other,today employs around 14 thousand people and has a turnover of more than $ 500 million. In 2004 Nirma's annual sales were as high as 800000 tonnes.According to Forbes in 2005 Karsanbhai Patel's net worth was $ 640 million and it's going to touch the $ 1000 million mark soon.

Market There was an inescapable reality about the fast moving consumer goods (FMCG) segment in India: the huge population portended that sooner than later purchasing power would develop enough muscle to help various FMCG categories penetrate deep into the country's semi-urban and rural markets. The trigger for this was an innocuous event in 1969.Today, it is universally recognised that Nirma's entry into the market radically changed the entire FMCG perspective. It set the stage for a new scramble for rural markets in which multi-national companies as well as established Indian players became fierce competitors. Nirma's focus was on ensuring that products like detergents were made affordable to even the lower economic strata of society.This philosophy had a profound effect on the entire FMCG sector and laid the roadmap for others to follow. In pure market terms, Nirma proved that supply, at the right price, could create its own

demand. MNCs, which were hedging their bets till then, woke up to altered market realities and the latent rural potential of India. The government's relaxation of norms also encouraged these companies to look at economies of scale in order to make FMCG products more affordable. Players in the organised sector, till then only focusing on the urban markets, vied to outdo each other in reaching the rural consumer first. Consequently, today soaps and detergents have almost 90% penetration in India. The fabric wash market consists of 2.2 million metric tonnes of synthetic detergents, with detergent cakes and bars accounting for 40% of the volume (Source: internal estimates).The rest comprises detergent powders. While in the late 1960s there was just the premium segment in the detergent powders market, today there are four price points. Among the branded players, Nirma is the leader with a 38% share (Source: internal estimates).The brand is almost singularly responsible for creating the new market segments in this sector.The unorganized market controls a 25% share. Today, the company's two brands, Nirma and Nima with 32 variants, are distributed through more than 2 million retail outlets, generating gross sales in excess of Rs. 4000 crore (US$ 833.30 million).The company has a significant presence in the personal care category through detergent powders and cakes, toilet soaps, scouring bars and in the food category through free-flow, edible salt.

Achievements Some six years ago, an ACNielsen Retail Audit had ranked Nirma India's seventh largest consumer brand. Remarkably, this status was achieved entirely on the strength of homegrown research and marketing strategies. Its story of success from a small, backyard company to one of the largest detergent manufacturers in the world merited a Harvard Business Review case study. The Nirma success story is the result of its founder, Dr. Karsanbhai Patel's relentless focus on quality, cost and value.The distribution model, sustained line extensions, innovative packaging, backward integration and umbrella branding strategies have all enhanced the brand's leadership.To achieve control on cost, size and scale of operations and supply of keyraw materials, Nirma pursued a backward integration strategy and established its own soda ash, linear

alkyl benzene (LAB), fatty acid, glycerine and huge salt works facilities. It's a matter of record that Nirma became one of the largest soda ash manufacturers in India and the 7th largest globally. The brand has also given back freely to society. It has established the Nirma University offering varied academic and doctoral courses in the disciplines of technology, management, diploma studies and pharmaceutical science besides setting up schools and colleges in rural areas. History In the summer of 1969, 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 it in polythene bags and then set off on his bicycle to sell the packets, door to-door. The launch of Nirma detergent cake came Sixteen years after the introduction of the detergent powder. Its success was a foregone conclusion In 1990, Nirma Super Detergent, a spray-dried blue detergent powder, was launched. With the launch of the high-TFM (total fatty matter) content Nirma Beauty Soap, Nirma began to expand its product portfolio.To counter the success of Nirma Beauty Soap, Hindustan Lever Limited launched Breeze. In a flanking operation that would have done military strategists proud, Nirma, launched another brand: Nima. Both the brands from the Nirma stable have been successful in grabbing a huge chunk of all incremental sales growth in the soap category in the past twelve years. Subsequently, the Nima sub-brand, too, has been extended to the detergents category. While the brands were making marketing history, the company was strengthening its operations. Setting up backward integration projects reinforced the detergents' portfolio. Today, almost 90% of all raw materials including linear alkyl benzene, soda ash, salt and packaging material are manufactured in-house. A 15,000-strong work force at different locations ensures that there is no compromise on quality and that production deadlines are met. In 1994, Nirma Limited was listed on the stock exchanges.Today, Nirma is the flagship company of the group with complete rights and ownership of the brand. Its wholly owned subsidiary Nirma Consumer Care Limited is the distribution arm. Product Since the launch of Nirma

detergent powder in 1969, the Nirma portfolio has grown to include fabric care products, personal care products, food products, packaging and chemicals. However, the underlying philosophy remains consistent to deliver value to consumers. In 2005 there were three successful product rollouts Nirma Saffron Beauty Soap, Nima Jasmine Beauty Soap and Nirma Super White Detergent Powder. In the fabric care category, Nirma has three products for the lower-end market.The Nirma Yellow Washing Powder is available in pack sizes of 30gms, 200gms, 500gms and 1kg and is ranked as the largest selling single detergent brand in the world.The Nirma Detergent Cake also yellow in colour is ranked as the most distributed detergent cake brand in the country and is available in pack sizes of 125gms and 250gms.The Nirma Popular Detergent Cake, available in pack sizes of 125gms and 150gms and targeted at lower income consumers, sells in huge volumes without any advertising support. In the mid-priced segment, the Super Nirma Washing Powder successfully debunked the myth that high-quality products had to be highpriced.The blue as well as white powders are available in pack sizes of 25gms, 500gms and 1 kg and are 40% cheaper than the nearest competitor.The blue-coloured Super Nirma Detergent Cake was introduced in 1990 as the better alternate to the then available detergent brands. In the scouring products category, the Nima Bartan Bar was launched with the tagline Bartan Hai Ya Darpan (Is it a utensil or is it a mirror?) which addressed the need for a scouring product that puts the shine back on utensils. The Nirma Clean Bar was launched to enable users of unbranded detergent powders and cakes to switch to a value-formoney branded product. Nirma entered the toilet soaps category with Nirma Bath Soap, a carbolic soap which positioned itself against the largest selling carbolic soap brand, Lifebuoy, from the Hindustan Lever stable, at half the price. The more upmarket Nirma Beauty Soap with five perfume variants also became an instant success. Nirma Lime Fresh Soap was launched as a mid-priced toilet soap without any advertising support. In the first month of its launch, 17 million packs were sold, vindicating the company's belief that value-for-money products are what consumers are looking for. Nima Rose and Nima Sandal are the other toilet soaps that are on offer in the mid-priced segment. The company entered the foods category with the launch of Nirma Shudh Salt in 2002. Nirma Shudh is only the second vacuum salt in the country and is manufactured using the world-class

Akzo Nobel technology.The edible salt is free from human touch. Recently, Nirma has doubled its production facilities for vacuum salt. Recent Developments In a changing market environment, the company has re-launched Nirma Yellow Washing Powder and Nirma Beauty Soap, two of its strongest brands. Nirma Yellow Washing Powder is being repackaged with an improved formulation. Nirma Beauty Soap will now have a new face. Two new fragrance variants are also being added to the portfolio Jasmine and Saffron. The packaging of the Nirma Beauty Soap has also been changed to provide better shelf visibility. In 2008, through the acquisition of massive production facilities near Ahmedabad, Nirma entered the healthcare segment with 'Nirlife' to manufacture and market intravenous fluids, life saving drugs, amino acids etc. Within a short span Nirlife achieved sizable market share of the domestic as well as the global parenterals market.

Promotion Nirma's advertising has always focused on the value-for-money angle. Its simple and catchy jingle Dudh Si Safedi Nirma Se Sye, Rangeen Kapda Bhi Khil Khil Jaye (Nirma's whiteness is as white as milk, even the most resplendent clothes blossom with it) has continued to echo in the drawing rooms of middle-class Indian homes through the decades. While the jingle stresses 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 has seen very few changes since the time it was first aired. Brand Values Dr. Karsanbhai Patel puts enormous stress on operating efficiencies and marketing practices so that consumers receive their money's worth. Every packet of Nirma that Karsanbhai Patel sold to his consumers came with a money-back guarantee. Nothing has changed since. But as sales grew, so did Nirma's scale of operations. The cost-conscious approach of the initial years was to

evolve into a strategic branding perspective. By the 1980s, Nirma was the toast of marketing gurus. Today, it's not just a brand it's a phenomenon whose time has come.

There are so many strategies related production. Each company have different strategies related it some company can not give after sales service we can sale they will not allow to their customer to change the product. NIRMA LIMITED follows strategies which are as under. Branding Company should their brand name which is easy to remember to and it should not illegal A Company brands is famous with the name of Nirma The Nirma Ltd. Has rightly chosen its brand name as Nirma which is named on the name of NIRUPAMA a daughter the chairman Dr. Krshanbhai Patel which is very easy to remember and attractive. After sales service After selling a product the work does not over for on industry. They are also liable to give their customer after sales service Nirma also gives this type of facility to the customer, customer is not providing after sales service ion a product which is small. But in case of any fault or if there is any complain received from the customer then they all are given replacement at a same product. Packing Packing is also an important as produced the thing only production is not enough but they have to pack their product in attractive paper Nirma Ltd. packing is done as per requirement their customer. They also selling they product after packing in retail or as per the requirement of customer packing process place vital role the point of view the customer because same people purchase any product to get prestige in a society . From Nirupama to Nirma Think of Nirma and the picture of a little girl twirling around in her white frock with the familiar jingle Washing powder Nirma comes to mind. One of the most recognisable Indian brands, Nirmas story is a classic example of the success of Indian entrepreneurship in the face of stiff competition. Nirma took on the might of giant multinationals and wrote a new chapter in the Indian corporate history.

Nirmas success is synonymous with its advertising and marketing strategy. When Karsanbhai Patel, the founder of the brand, started selling his detergent powder, he decided to call it Nirma, derived from the name of his daughter Nirupama. In the early years, the Nirma packet featured a lady washing a garment. Later, however, the design was changed and an image of his daughter was featured on the pack. The white dancing girl, featured in Nirmas television advertising, is perhaps the most enduring image of the brand. Nirma created an entirely new market segment in the domestic marketplace and quickly emerged as a dominant market player. The brand rewrote marking rules and its success story became one of the widely discussed case studies in B-Schools across the world. The magic that Purnima started Purnima is the advertising agency that has been handling brand Nirmas creative and media mandate for the last 30 years and has been consistently focussing on the value-for-money angle. Its simple and catchy jingle Dudh si safedi Nirma se aye, rangeen 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 since the time it was first aired. The various extensions As its journey continued, Nirma went ahead with category extension with new products in the premium segment. It entered into new line of toilet soaps. In 2000, the company also entered into the hair care segment with a product called Nirma Shikakai. Since the launch of Nirma detergent powder in 1969, the Nirma portfolio has expanded to include fabric care products, personal care products, food products, packaging and chemicals. However, the underlying philosophy remains consistent to deliver value-for-money products to consumers. The re-evolution period Though the brand has maintained a low profile yet iconic brand status, in 2009, brand Nirma got an image makeover as TapRoot India, the venture group of Agnello Dias and Santosh Padhi, took over the reins of the advertising mandate. The brief given to the agency by Nirma was to create an advertisement that matched up to the increasing aspirational levels of its customers, but giving it a modern look. Thus, the Jayas, Hemas and Sushmas of the world were replaced by Russian ballet dancers, performing underwater to some opera music in the background. The original Nirma jingle also got a modern twist.

Its like the Tortobbit Commenting on brand Nirma, TapRoot Indias Santosh Paddy Padhi, said, For me, Nirma is like the Tortobbit. The brand has gone the tortoise way, slowly and steadily, and zapped aggressively as and when required. He further said, Change is very important, as thats what leads to progression. It is needed for all of us, right from people to brands to nations as well. If the change is implemented in a right way and at the right time, then the change works for a longer period of time. According to Manan Soni, Director, Purnima Advertising, Every individual is a potential customer for Nirma. Hence, the communication conceived is also in such a way so as not to segregate or focus on a particular group of consumers. In future, too, our advertising strategy will be based on similar lines. We believe in creating campaigns that are aspirational and always positive in nature, more enjoyable and joyous in mood. Breaking the clich rule The detergent space has always been a bit crowded with various brands, but when it comes to marketing and communication of the brand, Nirma has its own set of beliefs. Soni explained, We have stayed away from demo ads and also ads comparing product A to product B. We focus on our product. Nirma will always offer value for money products and we will stay away from demo ads and create communication around aspiration for all individuals. Adding to this, Paddy said, Brand Nirma has never believed in showing a cliched animated product demo/ or comparison of stain/ dirt, which is used by 80 per cent of the players in the category. In fact, they never ever send a script for research. They know the brand and their consumers very well, which they passed on to use it in terms of what need to be communicated. In line with this thought process, the recent two campaigns have been conceptualised for Nirma detergent and Super Nirma. Keeping contact with its roots Brand Nirma evolved from a small town, and it is from there where the brand was spotted and went to become a national name. So, is the brand still crucial for the rural markets or have their TG now shifted to the bigger towns? For Soni, rural market is extremely crucial for Nirma, and he believes that the same applies for most mass brands in India. He said, Rural India is changing and so are their preferences and lifestyles. Buying power is increasing in rural India and semi-urban India. In terms of volumes, they generate huge volumes for Nirma. However, urban is equally important, as if you see, rural population is migrating to urban areas and hence,

the consumers are the same, only their location changes. Thus, our communication does not suggest a rural or urban touch, but is more neutral. An onlookers perspective On the lessons to be learnt from brand Nirmas yatra, Sumanto Chattopadhyay, Executive Creative Director, O&M, said, When it first came, Nirma shook its competitors and the Nirma girl stole every housewifes heart. As of today, I believe, they are at a crossroad, and so they need to reinvent themselves, because the market itself has become much more evolved. What Nirma now needs to do is innovate from the product level and go for a more radical change. A brand has to constantly refresh its communication, and this is one of the lessons creative agencies can learn too.

Competitor Analysis HUL:Surf,Rin&Wheel P& G: Ariel &Tide Henkelspic: HenkoandMr 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 styleof packing. Pricing: BasedMark eting Str ategy Nirmaenter edthe detergent mark et of Indiaa tatime wh en Hi nd ust an L e ver Limited(HLL), anFMCG giant,with its Surf ,had esta blished a nea r mo n o p ol y i n th e busi ne ss . Nirm a

succ eeded through its p ric el ed str a t e g y.

Cost L eade rshi p Nirm a h ad built cost l eade rshi p right from th e b e gi nn i n g . It w a s this costl eade rshi p built

ea rl y o n th a t ena bl ed Nirm a to follow th e p ric eb a s ed m a rk e ti n g str a t e g y. Choosi n g th e p ric e co n scious s

e gm en t a s its m a rk e t , Nirm a Ch e mic a ls off e r ed a low p ric e br and and p romot ed it a ggr e ssiv e l y. Itr e li

ed o n low cost t e ch n olog y, p roc e ss and r a wm a t e ri a ls Not e: Nirm a s p ric el ed str a t e g y w a s so succ e ssful th a t

e v en th e m a rk e tl eade r , who w a s a ll a lo n g followi n g th e d iff e r en ti a tio nl ed rout e, w a s forc ed to r e vi

e w its str a t e g y.

Ta r g et Aud ie n ce for N irm a Mass Marketing Nirm a tri ed to t ap th e hug e m a rk e t . It is a lso a o ne-

t ype of v a lu e p ro d uct to th e br and lo ya l co n sum e rs , c a t e ri n g th e ir d isti n ct need s . T h e p ro d

uct is st a bl e, off e rs b e st q u a lit y a t th e most a ffor da bl e p ric e s . Concentrated Marketing I th a s a lw ay s co n c en tr

a t ed o n th e sm a ll e rs e gm en t of m a rk e ts , Du e to its u n i q u e formul a tio n, this p ro d uct off e rs b ene fits lik e l e ssm

e lti n gi n w a t e r , b e tt e r st a bilit y, and th e r e for e l a sts lo n g e r . As pe r th e ORG MARG Rur a l Co n sum

e rP ane l [D e c e mb e r 1998] surv ey, Nirm a br and is r an k ed high e st i n t e rms of pene tr a tio n i n w a shi n gc a k e s/b a rs c a t

e gor y [B T Rur a lM a rk e t W a tch , Busi ne ss T o day, Ju ne 22 , 1999] . P ricing P rospective T oc a t e r to th e need s of th e s

pe cific t a rg e t a u d i en c e, Nirm a l a u n ch ed a goo d q u a lit y p ro d uct a t a v e r y a ffor

da bl e p ric e. T h e obj e ctiv e is toco n v e rt th e n o nus e rs of de t e rg en ts i n tous e rs and a lso p r e v

en t th e com pe titors and loc a lm an uf a ctur e rs to lur e a w ay th e p ros pe ctiv e Nirm a co n sum e rs b y sub st anda r d p ro

d ucts . T his p ro d uct h a s cr ea t ed a lo ya l co n sum e rb a s e of its ow n and h a s e st a blish ed subst an ti a l a mou

n t of volum e s . S e g me n t a tio n-D emo g r a phic s and P sy cho g r a phic s emographic segmentation : I n de mogr ap hic s e gm en t a tio n, th e

m a rk e t is d ivi ded i n to grou p so n th e b a sis of v a ri a bl e s such a s a g e, f a mil y siz e, f a mil y lif e c y cl e,

g ende r , i n com e, occu pa tio n, ed uc a tio n r e ligio n, r a c e, g ene r a tio n, na tio na lit y and soci a l cl a ss .

In come : I n com e de t e rmi ne s th e a bilit y of co n sum e r to pa rtici pa t e i n th e m a rk e t ex ch an g e and

h en c e this is a b a sic s e gm en t a tio n v a ri a bl e. Nirm a w a shi n g p ow de r , for exa m p l e, w a sl a u n

ch ed a s th e low e st p ric ed de t e rg en ti n I nd i a p rim a ril y t a rg e t ed a t th e mi dd l ei n

com e s e gm en t of th e m a rk e t . S oci a l C l ass: Soci a l cl a ss h a s a stro n gi n flu en c e o n p r e f

e r en c e i n clothi n g , th e r e for e to m a i n t a i n it de t e rg en t will a lso b e a p r e f e r en c

e. P sychographic segmentation: p s y chogr ap hic is th e sci en c e of usi n g p s y cholog y and de mogr ap hics to b e tt e ru nde rst and co n sum e rs . I n

p s y chogr ap hic s e gm en t a tio n, bu ye rs a r e d ivi ded i n to d iff e r en t grou p so n th e b a sis of p s y chologic a

l , lif e st y l e or v a lu e s . P e o p l e withi n th e s a m e de mogr ap hic grou p c an ex hibit v e r y d iff e

r en t p s y chogr ap hics p rofil e. V a lu e s and lif e st y l e s sig n ific an tl y a ff e ct th e p ro d uct and br and choic e

s of co n sum e rs . R e ligio n h a s sig n ific an tl y i n flu en c e o n v a lu e s and lif e st y l e s . y D e t

e rg en t p ow de rs w e r e co n si de r ed a s lu x ur y p ro d ucts i n l a t e 60 s , Nirm a with its u n i q u e

p ric e m ade it a ea sil y a cc e ssibl e for th e m a ss e s , p rovi d i n g a lu x ur y s e gm en ti n m a rk

e t a t a low cost . y Cl ean w a shi n g : T h e ad v e rtis e m en t shows th e Nirm a girl and oth e r a ctors i n ad v e

rtis e m en ts a lw ay si n whit e.

B r and Po s itio n i ng for N irm a Nirm a fou nd its p l a c e b e tw een th e

expen siv e de t e rg en ts and i n f e rior w a shi n gso ap sl a bs . T h e Nirm a br and w a s q uickl y r e cog n iz ed i

n Guj a r a t and ne ighbouri n g pa rts of M a h a r a shtr a and th e r e st is histor y. It is p ositio ned a s a p ow e rful st a i n r

e mov e r which is low o n cost . Du e to its u n i q u e formul a tio n, this p ro d uct off e rs b ene fits lik e l e ss m e lti n gi n w a t e r , b e tt

e r st a bilit y, and th e r e for e l a sts lo n g e r . As pe r th e ORG MARG Rur a l Co n sum e rP ane l [D e c e mb e r 1998] surv ey, Nirm a br

and h a sb een r an k ed a s high e st i n t e rms of pene tr a tio n i n w a shi n g p ow de rc a t e gor y [B T Rur a lM a rk

e t W a tch , Busi ne ss T o day, Ju ne 22 , 1999] . T he b elow poi n t sa re import an t to und er s t and the po s itio n

i ng s tr a te gya pplie d by N irm ay V a lu e for Mo ney co n c ep t y co n v e rt ed a lu x ur y p ro d uct i n to a b

a r e ne c e ssit y p ro d uct y Rur a l Focus I den tifi ed m a rk e ts wh e r e oth e rs s a w n o ne a chi e v ed pene

tr a tio n wh e r e oth e rs f e lt co n sum e r mi nd s e t Coul d n ot b e ch an g ed

Promotio ns tr a te gy of N irm a Nirm a b

e li e v e si n ad v e rtisi n go n l y a ft e r th ey h a v e l a u n ch ed a p ro d uct i n p l a c

e.

Nirm a' s ad v e rtisi n gh a s a lw ay s focus ed o n th e v a lu efor mo ney an gl e.

I n 1982 w e wit ne ss ed th

e birth of th e first film for th e br and, with th e e ff e rv e sc en t ji n gl e. It s sim p l e and c a tch y Dud h s i sa fe d i N irm as

e ay e, r ang ee n ka p da b hi k hil k hil jay e

Nirm a s pen to n l y 1 . 25 2 % of its tur n ov e ro n ad v e rtisi n g a s of 6 10 %lik

e wis e oth e r FMCG com pan i e s .

I n 2009 Nirm a w a k e su p and de ci de s to u nde rgo a pe rso na lit y tr an s p l an t

. Awho pp i n g Rs 1 . 5 cror e is s pen to n th a t thought .

A br and h a s to co n st an tl y r e fr e sh its commu n ic a tio n, Now , Nirm a is b a ck to t

a lki n g a bout th e d irt t a ckli n g p ro pe rti e s of th e de t e rg en t , a sw e ll a s us e th e l e g enda r y

' W a shi n g p ow de r Nirm a' ji n gl e. D i s tri bu tio nS tr a te gy of N irm a Nirm a Limit ed m a rk e ts its p ro d ucts through its full y ow

ned subsi d i a r y Nirm a Co n sum e rC a r e Limit ed (NCCL) , which w a si n c ep t ed i n 1985 . NCCL i n tur n r e s e lls th e s e

p ro d ucts i n th e m a rk e tu nde r th e umbr e ll a br and s NIRMA and NIMA a lo n g with ex t en sio n s . Nirm a p io nee r ed th e co

n c ep t of fl a t d istributio n ne twork . Nirm a Co n sum e rC a r e Limit ed o pe r a t e s with two pa r a ll e l d istributio n ne tworks .

T h e NIRMA br and ism a rk e t ed through th e first ne twork , which co n sists of a bout 450 ex clusiv e d istributors . It is o ne of th e low e st cost FMCG d istributio n ch anne ls of th e cou n tr

y. Pri n cip a l C h ann el :

Low e st Cost s y st e mi n I nd i a

S peed i n d istributio n

Fl ex ibilit y T h

e NIMA r an g e of p ro d ucts is m a rk e t ed through a pa r a ll e lm a rk e ti n g ne twork th a t com p ris e s of mor e th an 2000 d istributors .

P a r a llel C h ann el :

W i de rR ea ch S peedy M a rk e tI n t e llig en c e

Com pe titiv e ed g e &B e

tt e r focus Com p l e m en ti n g Pri n ci pa l Ch anne l

All NIRMA and NIMA r an g e of p ro d ucts h a v e a r e t a il r ea ch of ov e r two millio

n r e t a il outl e ts and mor e th an 40 millio n lo ya l co n sum e rs s p r ead a ll ov e r th e cou n tr y. T h e Com pany h a sb een succ

e ssful i n e st a blishi n g an ex tr e m e l y goo d urb an a sw e ll a s rur a l p r e s en c e through th e two d istributio n ch

anne ls . T h e d istributio n ch anne lsh a v e p l ayed a sig n ific an t rol e i n m a ki n g Nirm a a hous ehol d na m

e. T h e e ffici en t ne twork h a sm ade Nirm a W a shi n g Pow de r and Nirm a D e t e rg en tC a k e, th e br and swith high e st pene

tr a tio n i n th e r e s pe ctiv e p ro d uct c a t e gori e si n th e m a rk e t . T h e ne twork is w e ll eq ui pped

to m ee t th e de m and s of th e lo ya l co n sum e rs of th e Com pany a cross th e cou n tr y. T h e robust ne twork en sur e s th e a v a il a

bilit y of v a rious p ro d ucts a t d iff e r en tr e t a iloutl e ts a cross th e na tio n. T h e Distributio n ch anne l is g ea r ed u p to en

h an c e tr ade r e l a tio n s , buil d u p th e r e t a il e rb a s e b y p rovi d i n gv a rious b ene fits and i n

c en tiv e s , org an iz e and im p l e m en t d iff e r en t a ctiviti e s to g ene r a t e s a l e s and m ana g e n

um e rousoth e r p rogr a mm e s , sch e m e s and a ctiviti e s co n c en tr a t ed tow a r d s busi ne ss de v e lo p m en t .

F A C TAIMS surv ey r an k ed Nirm a de t e rg en tc a k e a s T h e Most wi de l y d istribut ed de t e rg en tc a k

e br and . 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. In keeping with its philosophy of providing quality products at the best possible prices, Nirma brought in the latest technology for its manufacturing facilities at six places 3 in India. Nirma's success in the highly competitive soaps and detergents market was attributed to its brand promotion efforts, which was complemented by its distribution reach and market penetration. Nirma'snetwork consisted of about 400 distributors and over 2 million retail outlets across the country. This hugenetwork enabled Nirma to make its products available to the smallest village.After establishing itself in India, Nirma expanded to markets abroad in 1999. Its first foray was intoBangladesh, through a joint venture Commerce Overseas Limited. Within a year, the brand became theleader in the detergent market in Bangladesh. The company also planned to enter other regions like theMiddle East, China, Russia, Africa and other Asian countries. Th e Road to Success The use of detergent powder was pioneered in India by HLL's Surf in 1959. But by the 1970s, Nirmadominated the detergent powder market, simply by making the product available at an affordable price. In1990, Nirma entered the Indian toilet soaps market with its Nirma Beauty soap. By 1999, Nirma becameIndia's second largest manufacturer of toilet soaps by acquiring a 15% share of the 5,30,000 tonnes 4 per annum toilet soap market. Though way behind HLL's share of 65%, Nirma's performance was remarkableas compared to Godrej, which had a share of 8% (Refer Figure I). By 1999-2000, Nirma had alsogarnered a 38% share of India's 2.4 million tonnes detergents market. HLL's share was 31% for the same period. h er Costs - NO Within a short span, Nirma had completely rewritten the rules of the game, by offering good quality products at an unbeatably low price. Nirma's success was attributed to its focus on cost effectiveness.From the very beginning, Patel had focussed on selling high-value products at the lowest possible price.The company endeavored to keep improving quality while cutting costs To keep production costs at a minimum, Nirma sought captive production plants for raw materials. Thisled to the backward integration programme, as a part of which, two state-of-the-art plants wereestablished at Baroda and Bhavnagar, which became operational in 2000. This resulted in a decline inraw-material costs. The two new plants were completed ahead of schedule and at a much lower cost thanestimated. The second phase of the Baroda plant was completed six months ahead of schedule and at acost of Rs.2.5 bn as against the original estimated cost of Rs. 2.8 bn. The Bhavnagar plant was completedin a record time of two years at a cost of Rs.9.85 bn as against the original estimated cost of Rs. 10.36 bn.The staff strength at this plant was a low 500. In contrast, Tata's Chemical's plant, which was about twicethe capacity, employed 10 times the number of people. The Baroda plant produced 65000 tpa of N-Paraffin for Linear Alkyl Benzene (LAB) and Synthetic detergents. The technology for this plant

wassourced from UOP Inter Amercana, USA.The Bhavnagar plant could produce 4,20,000 tpa of soda ash. The Akzo Dry Lime technology used in this plant was sourced from Akzo Nobel Engineering, Holland. The plant had 108 km of salt bunds, whichwould help it to produce vacuum iodised salt in the future.Said Patel, "We have a capacity of producing three lakh tonnes of pure salt. No one, except Tata Salt, hasa similar plant in the country." Nirma also curtailed its costs of distribution by eliminating intermediaries.The product went directly from the factory to the distributor. Hiren K Patel (Hiren), CMD, NirmaConsumer Care Ltd. explained, "An order is placed and the truck leaves straightaway. It is like a currentaccount.We send the stock, they send the money." The company maintained depots in states like Andhra Pradesh,Tamil Nadu and southern Karnataka, as getting stocks to these areas was sometimes difficult. In stateslike Uttar Pradesh and Madhya Pradesh, stocks were delivered directly from the plants. In March 2000, ina further cost reduction exercise, Nirma opted for inhouse printing and packaging by acquiring KisanIndustries at Moriya, near Ahmedabad. Nirma hoped this would improve the quality of its packaging. - YES Nirma also had innovative marketing strategies. In the mid-nineties, Nirma successfully extended its brand to other product categories like premium detergents (Nirma Super Washing Powder and DetergentCake), premium toilet soaps (Nirma Premium, Nima Sandal, Nirma Lime Fresh). It followed its original

marketing and pricing strategies in the economy segment as well as in the premium segment. In 2000, thecompany entered the hair care market with Nirma Shikakai, Nirma Beauty Shampoo, and NirmaToothpaste. Unlike detergents, soaps were a personal-care product. Many customers had deep psychological bonds with their soap brands. Moreover, the market was segmented by HLL by price, byscent appeal, and by brand personality.So, Nirma positioned Nirma Bath against Lifebuoy 5 , Nirma Beauty Soap against Lux 6 , Nima Rose againstBreeze 7 , and Nima Lime against Jai Lime 8 . Explaining how Nirma hoped to win this game, playing byHLL's rules, Hiren said, "World-wide, there are only four or five platforms floral, beauty, health,freshness which account for most of the soaps sold." Nirma produced high-fatty-matter 9 soaps with theright scents, and priced them much lower than other brands. This created the 'sub-premium' segment. Nirma also mastered the game of managing the geographical diversity of consumer preferences.For instance, the North preferred pinks soaps and while the South preferred green ones. Sandal soapswere more popular in the South. Initially, the advertising spend of the company was very low, ascompared to other FMCG companies. Nirma spent only 1.25-2% of its turnover on advertising ascompared to the normal 6-10%.For endorsing soaps, the company used starlets like Sangeeta Bijlani, Sonali Bendre, and Riya Sen, whowere relatively unknown at that time. The advertisement messages were also very simple and focused onthe benefit of the product. Nirma always preferred to place the product on the shelves first, receivefeedback, and then create an enduring ad campaign.While introducing toilet soaps and detergents in the premium segment, Nirma relied on its time-testedweapon Price. The company planned to concentrate on volumes in these segments as well. But therewas a change in the margins given to retailers. Unlike the economy products, where the cost benefits were passed on to the consumers, Nirma passed on this benefit to the retailers. It gave them huge margins.

For instance, for Nirma premium soap, it offered 52% and for Nirma shampoo, it offered an unbelievablemargin of 140%. Analysts were skeptical about Nirma's chances of success in the premium segment of the soaps market.Unlike detergents, the soaps and shampoo market was highly fragmented. There were about 15-20 brands,and it was difficult for any soap to get a sizable market share. Moreover, this market was less price sensitive. So, it was difficult for any company to sustain itself on price alone. Analysts felt that it wouldtake years to change Nirma's brand image. According to a survey conducted by Samsika MarketingConsultants, Nirma's marketing firm, Nirma was considered to be a cheap brand. Many people werealmost ashamed to admit that they were using it.To shed this image, in the late nineties, Nirma released corporate advertisements worth Rs 10 bnthroughout India. Analysts felt that the fast growing shampoo market was a better bet than the premiumsoaps market. In India, only 30% of the population used shampoos and more than 70% of this group wasin the urban areas. However, according to some analysts, though the perceived potential of the ruralmarket was very high, in actual practice, it was difficult to persuade rural folk to use shampoos. Another problem Nirma faced was that of inadequate infrastructure. Though it had a strong presence in the smaller towns and villages, it lacked the network necessary for penetrating urban areas. Thus, Nirma's entry into premium soaps and shampoos seemed to have failed. Th e Road A h ead Though Nirma was better known as a producer of low-cost economy range of products, it was successfulin the middle- and up-market segments. But at the same time, competition was also increasing. WhileHLL continued to be a major competition, P&G and Henkel SPIC also adopted aggressive measures 10 .Players from unorganized sector were also adding to the competition in the detergents and washing powder industry. However, Patel was confident of tackling the competition. He said, "We hold the priceline and the satisfied consumer naturally reverts to us." In the past three decades, the brand had grown invalue and volume on the basis of his success formula: "A customer does not look for one-time frills or feel-good factors. Rather, the householder wants a long term solution to his or her needs." What remainedto be seen was whether Nirma's costfocussed model would be a success in the long run Brand salience (Brand Awareness)Depth of Brand Awareness Brand Recall value Nirma is the only brand which my grand- mother can recall from her time and it is ageneric name for her. From my grand-mothers time to present time Nirma is able tosustain its position in the market and its name never got washed away. Such a strongpresence of a non premium brand as well as its recall value has always been fascinatingme.When we think of strong detergent in general and low cost in particular, Nirma is the firstbrand which comes to our minds. Everyone remembers not just these lines but also thetune! Washing powder Nirma, Washing powder Nirma;DoodhsisafediNirma se aaye, rangeenkapdabhikhil-khiljaye;Rekha, Jaya, MeenaaurSushma, SabkipasandNirma The kind of impact that Nirmas simple Dancing Girl advertisement managed to haveon prospective buyers was phenomenal. It perhaps was the most famous audio-visual of its times. And it remained etched in the minds of people for a very long time. Advertisements of Nirma focus on the performance and cost effective features of thewashing powder which has made it popular in most Indian households, who have beenusing it for many years now. This product is targeted for middle class and lower middleclass population of India. Washing Powders have undergone a

number of changes interms of composition, advertising etc ever since they were first introduced. Andconsumer preferences have also changed accordingly with people more comfortablewith more sophisticated brands. Yet, Nirma with its distinct yellow color (later whichbecame blue) does crop up somewhere in the mind space of consumers, even nonusers.Nirma envisioned the vast Fabric Wash market segment and sensed atremendous potential therein. Breadth of Brand Awareness- Brand usage This brand had been ranked as the Most widely distributed detergent powder brand inIndia. Brand Nirma has always been able to demonstrate his mass market presence.Nirma as a brand has few variants. Four of the more popular ones are Detergents,soaps, edible salt and scouring products. As a brand Nirma may be limited in itsvariants. But, its usages are plenty. Brand PerformanceRatio of detergent to other constituent makes Nirma a unique product which is good inquality and reasonable in price. Nirma is also used as cleaning agent for floor etc. in many Indianfamilies. Nirma is regarded as a strong cleaning agent that can be used inany condition which includes hard water, tough stains and sticky dirt.Owing to its unique environment-friendly, phosphate-free formulation, the consumers became loyal to this brand, helping it to over-take the decades old brands, in terms of volumes. Nirma is successful in providing a very attractive value-for-money proposition. Deriving inspiration from its success in the Detergent Powder market, Nirma expandedits product portfolio by introducing the Nirma detergent cake in 1987. Here again, theexcellent price-quality equation tempted the consumers to try the product. This bluesoap has got substantial market share in the premium detergent segment and continuesto perform well as its parent. Due to its unique formulation, this product offers benefitslike less melting in water, better stability, and therefore lasts longer.In the country like India where majority of the population belongs to middle class andlower middle class Nirma is strongly positioned in this segment. Nirma for me scoreson all the counts mentioned above.Compared to other product, Nirma is quite affordable. A packet of Nirma lasts longer ascompared to any other washing powder; Kind of detergent used in it necessitates lessquantity. Simple and non-sophisticated packaging contributes to reduced cost of Nirma.Nirma is never provided in paper box, customer buys it and store it in some box alreadyavailable in house .That way customer need not to pay extra money for packaging whichisnon value adding for them. Its Cover saves it from moisture and humidity. Brand ImageryNirma has always been embedded in consumers mind in some or other part of consumers life. Nirma is always willing to cater to its customer from every segment. (a) Jyada Shakti Nirma: Initially Brand Nirma was targeted for low class and lower middle class segmentof the population. (b) Super Nirma: Exploding the myth that better quality always demands higher price, Nirmaintroduced a spray-dried blue coloured washing powder in the premium segment,in 1996. Available in 25g, 500g and 1000g packs, this product out-classed itscompetitor brands. Though, priced almost 40 % lesser, thus providing a veryattractive value-for-money proposition. This brand, within a short span of twoyears, had cornered substantial market share in the premium detergent segmentand continues to perform well. ( c) Nirma Popular:

To cater to the needs of the specific target audience, Nirma launched a goodquality product at a very affordable price. The objective is to convert the nonusersof detergents into users and also prevent the competitors and localmanufacturers to lure away the prospective Nirma consumers by substandardproducts. This product has created a loyal consumer base of its own and hasestablished substantial amount of volumes. It is available in pack sizes of 500gand 1000g pack sizes.Nirma is available in any kirana stores and mostly all parts of the country .Nirma is mostwidely distributed brand of the country. Yellow color of Nirma washing powder is stillpresent in the minds of Indian consumers Personality and values: V arious dimensions of multi personality brand Nirma are as follows:a) Sincerityb) Robustc) Competenced) Performer e) Ruggednessf) Powerful (abjyadashaktiNirma)Its advertisement focuses mainly housewives which is a major chunk of Indianpopulation. Nirma entered in the production of beauty bars also. SangeetaBijlani, Sonalibendre, DeeptiBhatnagar are some of brand ambassadors of Nirma. Brand Judgments: Brand Nirma is always considered as a non sophisticated and high performing brand ascompared to any other brand present in the market. V ariety of Washing powders likeSurf excel, Ariel, Tide are present in the market which can give tough competition toNirma as they provide better performance. But brand Nirma is strategically positionedso well in its customer segment that it can sustain its position in the market, after beingfew of its customers switching to other products. If a Lot of customers shift to premiumproduct range another set of customer shift to Nirma. a) Brand QualityNirma is famous for providing high quality in terms of moneyspend on the product or we can say High value for money preposition. It has animage of being a performer in any odd situation. b) Brand Credibilitya.Perceived expertiseNirma is a Market Leader. It always been verysuccessful in giving tough competition to its counterparts like Fena, More,Hepolineetc .It always added innovation to its products and gave aspecific product for specific customer segment e.g. Super Nirma and Product and Brand Management Assignment Submitted by: PreetiSachan (086) Page 6 Nirma Popular were introduced to cater to high quality demandingcustomers. b. TrustworthinessIt has always proved to be a dependable brand fromdecades. It has always been present in the mind of Indian customersincluding non-users. c. LikeabilityHigh V alue for money and high Quality to cost ratio makesit an interesting, price-worthy and useful product. c) Brand ConsiderationOther than any brand Nirma is personally related to mygrand-mother and surprisingly high brand recall value and praise for brandmotivates me to know the brand. Its presence from decades depicts itsubiquitous nature and robustness.

d) Brand SuperiorityIts presence from long time and performance makescustomers to view the brand as unique and better than other brands. e) Brand FeelingsCustomers are emotionally attached to the brand. Brand Nirmabeing a prime mover in affordable washing powder has a respectable place inIndian consumers mind. It gives an Image of a strong and sturdy old man whohas faced all the adversities calmly and courageously.Nirma always adopted captivating and unique advertising and marketing strategy. Thisproduct created a marketing miracle, when introduced in the domestic marketplace. In1969, when the detergents were priced so exorbitantly that for most of the Indians, it wasa luxury item. Nirma envisioned the vast Fabric Wash market segment and sensed atremendous potential therein. This product was priced at almost one third to that of thecompetitor brands, resulting into instant trial by the consumers.Time to time it kept on introducing its variants in the market like Super Nirma, Nirma popular, Nirma beauty bar and other toiletry preparations.It took advantage of word of mouth advertisement. Especially the segment in whichNirma focuses; consumers are always ready to admire a brand which gives themperformance. Nirma also delivered consistent performance matching to customersneed. Customers tend to use it because of its attachment to the brand in spite of presence of other similar performing brands. Brand Nirma was also notorious for itsharmful effects on users hands but here also Nirma came up with Super Nirma and verywell advertised this newly introduced feature. Product and Brand Management Assignment Submitted by: PreetiSachan (086) Page 7 Brand ResonanceBrand Nirma is present in the mind of customers from long ago. Despite being a nonuser customers respect this brand and share a good memory and experience with thebrand from its child hood days or may be experience of parents. Like a person Nirmahas a glorious past which epitomizes its success and strong presence in the marketeven now.My parents share their early age experiences when they were the user of this brand andhowexiciting the introduction of this brand in the market was. Everyone in the friendcircle was the user of this brand. Sense of belonging to this brand is stronger today also.In washing powder stories Nirma is a protagonist which reaches to the apex by keepingsmall and steady steps. Its success is incremental and phenomenal. Active Engagement: Customers are willing to spend money on this product and use it.Brand Nirma is still present in middle class and Lower middle segment unaffected by anyexternal competition and changes

The Nirma Story "It all started to earn a side income, and at that stage, I had never imagined this kind of success." Karsanbhai Patel, CMD, Nirma Ltd.

"Like other FMCGs, we have not concentrated only on marketing strategy. From the very beginning, operational strategy in cost containment, backward integration, economies of scale, innovative production, packaging and penetration schemes have received equal attention." Hiren K Patel, CMD, Nirma Consumer Care Ltd. (Nirma's marketing arm)