Market the detergent powders market, today there are soda ash, linear alkyl benzene (LAB), fatty
e soda ash, linear alkyl benzene (LAB), fatty acid,
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
144 SUPERBRANDS
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 unorganised
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 home-
grown 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 key-
raw materials, Nirma pursued a backward
integration strategy and established its own
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 high-
priced. 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-for-money 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.
www.nirma.co.in
Things you didn’t know about
Nirma
Nirma and Nima are named after
Dr. Karsanbhai Patel's daughter, Nirupama.The
white dancing girl, featured in Nirma's television
advertising is, perhaps, the most enduring image
of Nirma.Though Ms. Patel passed away in a
car accident, she continues to live on in the
corporate logo and the best-selling brands of
the company
Nirma's radio spot has been aired without a
break for 33 years
Till 1986, Nirma was a single product brand
Nirma is one of the largest selling detergent
brands in the world
More than 2 million retail outlets stock Nirma
products and reach 400 million consumers
Nirma was launched at Rs. 3 per kilo
SUPERBRANDS 145