Product & Brand Management

A
Project
On

Executive Summary:

Our project is a combined effort and hard work coupled with dedication
of our team under the guidance of honored Ms. Sufia khan. This is to
acknowledge the expert guidance and valuable inputs provided by our lecturer
Ms. Sufia khan.

This project is all about brand analysis. Here, we have chosen “Nirma” as
a brand for analysis in the project. We have covered

1) General information of brand

2) History of the brand
3) Why Nirma has lost glory over time?
4) What strategies Nirma has followed to keep its brand alive?
5) Competitive analysis with Surf (Similar brand)

Introduction:

Nirma Ltd. The Group's principal activity is to manufacture detergents

and toiletries. The Group operates in four segments: Soaps and Surfactants,
Processed Minerals, Other Business and Pharma. The Soaps and Surfactants
segment manufactures detergents, toilet soap and its ingredients. The Other
Business segment manufactures single super phosphate, vacuum salt, iodized
salt, tooth paste, Tooth paste, and Oil. The Group's products include Synthetic
Detergents, Toilet Soaps and Soda ash. The Group markets its products under
the brand names Nirlife, Nirma and Nirma.
 Name: Nirma Ltd.
 Establishment : 1969
 Headquarters : Ahmedabad
 Key person : Dr. Karsanbhai Khodidas Patel (CMD)
 Industry Type : FMCG
 Employees working : Around 14,000

History of the brand:

In 1969, a son of small-time farmer was trying to mix Soda Ash and few
other intermediaries, to make a detergent produce. He was a qualified Science
graduate and was working as junior chemist in Government laboratory. As a
moonlighting activity, he was making detergents in the 100 Sq. Ft. back yard of
his home, using bare hands and bucket. Once the mixture is ready, he used to
pack them in polythene bag and was selling door-to-door. Karsanbhai Patel
named the powder as Nirma, after his daughter Nirupama.
Gradually, the brand became well accepted in the consumer community,
and the rest is known to one and all… This is a success saga of a first generation
entrepreneur, on his way to create history in the Indian marketplace - that was
Dr. Karsanbhai Patel.
India is a one of the largest consumer economy, with burgeoning middle
class pie. In such a widespread, diverse marketplace, Nirma aptly concentrated
all its efforts towards creating and building a strong consumer preference
towards its ‘value-for-money’ products.
The performance of Nirma during the decade of 1980s has been labeled
as ‘Marketing Miracle’ of an era. During this period, the brand surged well
ahead its nearest rival – Surf, which was well-established detergent product by
Hindustan Lever. It was a severing battering for MNC as it recorded a sharp
drop in its market share. Nirma literally captured the market share by offering
value-based marketing mix of four P’s, i.e. a perfect match of product, price,
place and promotion.
In the year 2004, Nirma's annual sales touch 8, 00,000 tones. This was the
largest volume sale with a single brand name in the world. Looking at the
FMCG synergies, Nirma stepped into toilet soaps relatively late in 1990 but this
did not deter it to achieve a volume of 100,000 per annum. This makes Nirma
the largest detergent and the second largest toilet soap brand in India with
market share of 38% and 20% respectively.
Nirma has always been practiced ‘value-for-money’ plank. Nirma plans
to extend the same philosophy in categories as commodity food products,
personal care products and packaged food. Distinct market vision and robust
infrastructure allowed Nirma to have cost leadership. Apart from this, lean
distribution network, umbrella branding and low profile media promotions
allowed it to offer quality products, at affordable prices.

Why Nirma has lost glory over time?

Nirma, as a brand, from its beginning has been concentrating on pricing.

Because of the lower prices, it has been seen that consumers have doubted about
its quality. Nirma has always tried to keep the pricing of its brand lower than
other competitive brands available in the market, but consumers especially in
the urban areas had considered Nirma brand inferior in compare to other brands
just because of this pricing factor. But the fact was that Nirma always tried to
focus on cost effectiveness.

It has been seen that Nirma had less presence in premium segment. Nirma
has always concentrated on cost effectiveness. Therefore, Nirma has always
introduced products at lower price against competitive products. There are very
few products of Nirma in premium segment.

It has also been found that Nirma has lacked in global tie ups. If Nirma
could have made global tie ups, there would have been chances that Nirma
could be able to make a great image at global level. Moreover, Nirma did not
have global market share like other competitive products had. Because of it,
Nirma had less market share at global level.

What strategies the company has followed to keep its brand alive?

These are some strategies which Nirma has followed to keep its brand
alive. They are as following:

1) Value for money concept:

Nirma had introduced detergents at an astonishing Rs. 3 per KG. Where
leading brand (Surf), at that time, priced at Rs. 13 per KG.
2) Rural focus:
To keep “Nirma Brand” alive, the company has made so many strategies.
In which company has made rural focus to cover untapped markets of India by
the strategy Value for money concept. It is true that In rural area, the first
priority is given to price and then to quality. So by keeping price lower than
competitors, Nirma has been successful in keeping brand alive and in keeping
the competitors very far.

3) Flat, efficient and robust distribution network:

To be available in each and every market (rural and urban), it is very
necessary that the product should be easily available. To make the products
available, the distribution channel should be flat, efficient and fast. Nirma has
developed these qualities in its distribution network.

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.
1. Principal Channel [Nirma Products]:
 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.
2. Parallel Channel [Nima Products]:
 Wider Reach.
 Speedy Market Intelligence.
 Competitive edge & Better focus.
 Complementing Principal Channel.
4) Multi – dimensional aggressive marketing and manufacturing strategy:
To be ahead in each and every segment, Nirma has been using multi –
dimensional aggressive marketing and manufacturing strategies to keep its
brand alive.

5) Aggressive media strategy:

To keep its brand alive, Nirma has always focused on aggressive media
strategy. Nirma has been giving its ads in different modes of media. So that the
images of Nirma Brand should always be there in people minds.
6) Continuously exploring & developing new products & processes:
Nirma has always tried to introduce new and innovative products to its
customers.

7) Laying emphasis on cost effectiveness:

Nirma has always concentrated on cost effectiveness to compete with
other brands. Nirma has tried to build an image of good quality products with
lower prices and it has been successful.

8) Maintaining effective Quality Management System:

Nirma has been able to maintain an effective Quality Management
System.

9) Complying with safety, environment and social obligations :

Nirma as a brand has always tried to be a brand which should be kept
as a symbol of safety, environment and social obligations.

10) Imparting training to all involved employees on a continuous basis:

Nirma has focused on employees’ training and development on a
continuous basis. It is just done to keep products better than others and in this
way, brand can be more popular.

11) Teamwork and active participation all around:

Nirma has been successful in teamwork and active participation in
making and keeping a good brand in the market.

12) Demonstrating belongingness and exemplary behavior towards

organization, its goals and objectives:
Nirma’s demonstrating belongingness and exemplary behavior towards
organization, its goals and objectives is there for just the betterment of brand.

Competitive analysis with similar product/brand:

A competitive analysis of Nirma, as a brand has been made with Surf, a

similar brand.

Nirma:

Strong points:

 One of the world's largest and most integrated manufacturer of detergents

and toiletries.
 Largest player of the Indian Detergent Market with a share of 38%.
 Second largest toilet soap marketer of the Indian Market with a share of
20%.
 Nirma is one of the largest selling single detergent brands in the world.
 Strong brand equity. Nirma is Rs.17 billion umbrella brand offering
consumers a broad portfolio of products at multiple price points in the
Detergents, soaps and personal care market.
 Produce a range of industrial chemical products which primarily serve as
raw material or intermediates for soaps and detergent business.
 Market leadership in detergent market and fabric wash industry player in
toilet soap industry.
 Wide distribution network.
 “Dudh si safedi, Nirma se aayi, rangin kapade bhi khil khil jaaye, sab ki
pasand Nirma” slogan has been using since last 35 years to keep a brand
stronger than others.
 Value proposition high-value product at lowest possible price.
 Effective and wide distribution network and eliminating intermediaries
i.e. factory – distributor.
 Development of regional warehouses.

Weak points:

 Less presence in premium segment.

 Lack in global tie ups and thus lacking in export market.

Surf:

Strong points:

 Strong brand portfolio

 Product variety
 Solid base of the company
 Innovative aspects
 Reach of the products
 Competitive advantages – Strong marketing mix of the company
  Success of the slogan – stains are good
 Global Purchasing
 Use of creative advertising and promotions on website and commercials
 Surf as a brand is enjoying well developed supply chain of Unilever.

Weak points:

 Strong competitors
 High price of the brand
 Availability of large range of substitute brands
 Lack of control in the market
 Lack of reliability of data, plan predictability
 Lack of competitive strengths

How can a brand be made a successful brand?

“Success and failure of brand extension greatly depends on the positioning of

the product.”

1) Ensure Relevance to Customer’s Frame of Reference:

One requires to be fully aware of the frame of reference with which

customer views the product, and understand the combination of customer’s
attitudes and the situations in which the brand is used, to obtain the most
powerful customer insights.

Generally marketers look at the product, as they want to launch it, and
not what consumers are expecting. This gap leads to non-acceptance of the
product.

2) Secure the Customer’s Permission for the Positioning:

It is paramount to obtain the permission of consumers since it helps in

building the bridge that can carry customers from where they perceive the brand
to be today to where one wants to take it into the future. Bridges are often best
built when they leverage the unique emotional benefits of the brand’s equity
that are relevant to the customers.

3) Deliver on the Brand’s new Promise:

 It is easy to say that “do what you say”, but very difficult to implement.
However if this adage is not taken care of, it is harmful not only for the
extended product but also for the parent product.

It tarnishes the image and then great effort is required to regain the lost
status. This is particularly true in service industries, given the need for
tremendous organizational change, and industries that require long lead times
for organizational or infrastructure changes.

Customer- Based brand equity pyramid

RESONANCE

JUDGMENT FEELING
 PERFORMANCE IMAGERY

SALIENCE

1. Rational routes:

a) Performance

b) Judgments

2. Emotional routes:

a) Imagery

b) Feelings

Branding ladder:

1) Brand identity

2) Brand meaning

3) Brand responses

4) Brand relationships

Brand salience (Brand Awareness) Depth of Brand Awareness – Brand

Recall value

Nirma is the only brand which is very old anf it can recall from past time. From
very past time to present time Nirma is able to sustain its position in the market
and its name never got washed away. Such a strong presence of a non premium
brand.

When we think of strong detergent in general and low cost in particular, Nirma
is the first brand which comes to our minds. Everyone remembers not just these
lines but also the tune!
“Washing powder Nirma, Washing powder Nirma; Doodh si safedi Nirma se
aaye, rangeen kapda bhi khil-khil jaye; Rekha, Jaya, Meena aur Sushma, Sabki
pasand Nirma”

The kind of impact that Nirma’s simple “Dancing Girl” advertisement managed
to have on prospective buyers was phenomenal. It perhaps was the most famous
audio-visual of its times. Advertisements of Nirma focus on the “performance”
and “cost effective” features of the washing powder which has made it popular
in most Indian households, who have been using it for many years now. This
product is targeted for middle class and lower middle class population of India.
Washing Powders have undergone a number of changes in terms of
composition, advertising etc ever since they were first introduced. And
consumer preferences have also changed accordingly with people more
comfortable with more sophisticated brands. Yet, Nirma with its distinct yellow
color (later which became 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 in India”. 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 its variants. But, its usages are plenty.

Brand Performance-Ratio of detergent to other constituent makes Nirma a

unique product which is good quality and reasonable in price. Nirma is also
used as cleaning agent for floor etc. many Indian families. Nirma is regarded as
a strong cleaning agent that can be used in any 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 expanded its product portfolio by introducing the “Nirma
detergent cake” in 1987. Here again, the excellent price-quality equation
tempted the consumers to try the product. This blue soap has got substantial
market share in the premium detergent segment and continues to perform well
as its parent. Due to its unique formulation, this product offers benefits like less
melting in water, better stability, and therefore lasts longer. In the country like
India where majority of the population belongs to middle class and lower
middle class Nirma is strongly positioned in this segment. “Nirma “for me
scores on all the counts mentioned above.

Compared to other product, Nirma is quite affordable. A packet of Nirma lasts

longer as compared to any other washing powder; Kind of detergent used in it
necessitates less quantity. 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 already available in house .That way customer need
not to pay extra money for packaging which is non value adding for them. Its
Cover saves it from moisture and humidity.

Brand Imagery-

Nirma has always been embedded in consumers mind in some or other part of
consumer’s 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
segment of the population.

(b) Super Nirma:

Exploding the myth that ‘better quality always demands higher price”, Nirma
introduced a spray-dried blue coloured washing powder in the premium
segment, in 1996. Available in 25g, 500g and 1000g packs, this product out-
classed its competitor brands. Though, priced almost 40 % lesser, thus
providing a very attractive ‘value-for-money’ proposition. This brand, within a
short span of two years, had cornered substantial market share in the premium
detergent segment and continues to ( c) Nirma Popular: 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 nonusers 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. It is available in pack sizes of 500g and 1000g pack sizes. Nirma is
available in any kirana stores and mostly all parts of the country .Nirma is most
widely distributed brand of the country. Yellow color of Nirma washing powder
is still present in the minds of Indian consumers.

Personality and values:Various dimensions of multi personality brand Nirma are

as follows:

a) Sincerity

b) Robust

c) Competence

d) Performer

e) Ruggedness

f) Powerful (ab jyada shakti Nirma)

Its advertisement focuses mainly housewives which is a major chunk of

Indianpopulation. Nirma entered in the production of beauty bars also. Sangeeta
Bijlani, Sonali bendre, Deepti Bhatnagar are some of brand ambassadors of
Nirma.

Brand Judgments:

Brand Nirma is always considered as a non sophisticated and high performing

brand as compared to any other brand present in the market. Variety of Washing
powders like Surf excel, Ariel, Tide are present in the market which can give
tough competition to Nirma as they provide better performance. But brand
Nirma is strategically positioned so well in its customer segment that it can
sustain its position in the market, after being few of its customers switching to
other products. If a Lot of customers shift to premium product range another set
of customer shift to Nirma.

a) Brand Quality- Nirma is famous for providing high quality in terms of

money spend on the product or we can say High value for money preposition. It
has an image of being a performer in any odd situation.

b) Brand Credibilitya. Perceived expertise- Nirma is a Market Leader. It

always been very successful in giving tough competition to its counterparts like
Fena, More, Hepoline etc.It always added innovation to its products and gave a
specific product for specific customer segment e.g. Super Nirma and Nirma
Popular were introduced to cater to high quality demanding customers. b.
Trustworthiness- It has always proved to be a dependable brand from decades.
It has always been present in the mind of Indian customers including non-users
c. Likeability- High “Value for money “and high “Quality to cost ratio” makes
it an interesting, price-worthy and useful product.

c) Brand Consideration- Other than any brand Nirma is personally related to

my grand-mother and surprisingly high brand recall value and praise for brand
motivates me to know the brand. Its presence from decades depicts its
ubiquitous nature and robustness.

d) Brand Superiority- Its presence from long time and performance makes
customers to view the brand as unique and better than other brands.

e) Brand Feelings- Customers’ are emotionally attached to the brand. Brand

Nirma being a prime mover in affordable washing powder has a respectable
place in Indian consumers mind. It gives an Image of a strong and sturdy old
man who has faced all the adversities calmly and courageously. Nirma always
adopted captivating and unique advertising and marketing strategy. This product
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 was a 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 the competitor 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
which Nirma focuses; consumers are always ready to admire a brand which
gives them performance. Nirma also delivered consistent performance matching
to customer’s need. 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 its harmful effects on user’s hands but here also Nirma came
up with Super Nirma and very well advertised this newly introduced feature.

Brand Resonance-

Brand Nirma is present in the mind of customers from long ago. Despite being a
non user customers respect this brand and share a good memory and experience
with the brand from its child hood days or may be experience of parents. Like a
person Nirma has a glorious past which epitomizes its success and strong
presence in the market even now. Brand Nirma is still present in middle class
and Lower middle segment unaffected by any external competition and
changes.

FINDINGS

 On the basis of filled questionnaires we have analyzed that niram is being

used and nirma as a brand is very popular in rural and semi-urban areas.
 Particularly in the indian markets where consumer still focus on pricing
factor rather then a quality factor.
 Here niram has been successful in winning consumers by value-for-
money concept and cost effectiveness.
 Nirma as a brand has survived a lot just because of its pricing fectors.
 In todays modern market low priced brand are know as chipper brand and
costly are know as luxurious brand. But here also niram has able to
maintain its brand equity using so many fectors like its jingle, red color
font with yellow background in small picture, attractive packing.

Conclusion:

It has been persistent effort of Nirma to make consumer brand available

to masses at an affordable price. Hence, it takes utmost care to provide finest
products under Nirma Brand at the most affordable prices. To leverage this
effort, Nirma has gone for massive backward integration along with expansion
and modernization of the manufacturing facilities.

The focal objective behind modernization plan is of up gradation with

resource-savvy technology to optimize capabilities. Nirma’s six production
facilities, located at different places, are well equipped with state-of-art
technologies. To ensure regular supply of major raw materials, Nirma had opted
for backward integration strategies. These strategic moves allowed Nirma to
manage effective and efficient supply-chain.
 So, Nirma has been the most loving brand of the people. It has faced
some problems but at every time, its extra ordinary efforts have made Nirma a
good brand.

QUESTIONAIRE

ON

NIRMA AS A BRAND IN THE MINDS OF THE PEOPLE

1. Name: 2.Age:

3. Sex: Male( ) Female( )

4. Occupation:
 Student( )
 Business man( )
 Home maker( )
  Employee( )
 Profession(Dr/Artist/C.A) ( )
 Other( )

5. E-mail id:
6. Have you heard about NIRMA? If yes then what do you know
about it?
 Yes() No()
7. If I say NIRMA what is the first thing that comes to your mind?

8. Have you or anyone used any product of NIRMA?

 Yes() No()

9. If given a choice will you use NIRMA?

 Yes No()
10. Do you think NIRMA as a brand has lost its position in the
market since it was launched and why?
 Yes() No()
11. Can you name some of the products of Nirma?
12. What soap/detergent do you use?