How did Nirma achieve this market share?

Marketing

Distribution

Nirma, a marketing miracle!

Initially, no ads, word of mouth

1972, First advertised, on AIR

Doodh si safedi (White as milk)

How about Distribution Channels of Nirma?

Page 15, Establishing an efficient & resourceful network of distribution

Single layer

In low cost game, play volume game to make respectable profits

Market share has to increase in volume game

What are the frequently used strategies to improve the market share?

Being industries low cost provider

Differentiation such as higher quality, technological superiority

Focus on Market Niche

Developing expertise that rivals can not easily copy

Positioning

Quality Product for an affordable Price

Detergents formed only 10% of fabric wash (1970)

If large percentage of fabric wash today is detergent, Nirma certainly has contributed to this
change

Did Nirma, unknowingly, adopt a Blue Ocean Strategy?

The success of Nirma can be attributed to the four pronged strategy (p 20):

Aggressive pricing without compromising on quality

Presence in almost sub-segment of market

Visibility of the Umbrella brand Nirma helping to cut the advertisement cost

Strong marketing network enabling products to be available across two million retail outlets

What are the Strategies for SMEs like Nirma?

See Do SMEs need to strategize? by Govinda Sharma,

Niching strategy

Free Riding Strategy

Forming Strategic Alliance

To gain competitive advantage or deter them from adopting aggressive strategies

See Circumventing entry barriers into soft drink Industry, P 45 of text

See Private Label Strategy by Nirmalya Kumar and Jean Benedict, HBS
publication

Niching strategy

Filling market gaps by offering products differentiated from, but substitutable to, that of
bigger rivals

Quality at an affordable price

Free Riding Strategy

Exploiting the market development of the bigger rivals by offering products similar that
offered by the rivals

Page 14 of HO, Indian middle class wife had been .How much ever she tried, it was a
product quite out of reach.

1960s: Surf Rs 15 per kg, Nirma: Rs 3.5 per kg

Nirma was 4.29 times cheaper!

Forming Strategic Alliance

To gain competitive advantage

See the case of Circumventing entry barriers in soft drink industry, p 45 of text
wherein Cott Corporation formed a strategic alliance with WalMart to beat Coca Cola
and Pepsi

Deter rivals from adopting aggressive strategies

Deer around elephant

Why did the market share drop?

Reaction from the bigger players

HULs operation STING

Page 14: Strategy to inhibit Nirma Growth

Page 15: Counter offensive

Wheel at Rs 14 against Nirmas Rs 13 per kg!

How is Nirma re-branding itself?

The brief given to the agency by Nirma was to create an advertisement that matches up to the
increasing aspiration levels of its customers and give it a modern look

The new commercial has retained the girl in the frock who appears toward the end of 60-second
television commercial