NAME: ADITYA SENGUPTA

ROLL NO :19202002
SEC: A
SUBJECT: MARKETING MANAGEMENT II
NIRMA CASE ANALYSIS

1. Brand Equity

Brand Equity is the perceived value of the brand on consumers that makes the

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brand superior or inferior over other brands. Nirma is a well-known brand of

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detergents and washing soap all over India and in some other parts of Asia and rest

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of the world. With a market share of more than 38% in the detergent category and
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8% in the soap segment is well known because of its value for money, affordable
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products and best quality of detergent products. When Nirma was introduced in
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the market all other detergent products were considered as Premium product but
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Nirma actually changed the notion and they introduced the product with a price
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which was one –third of the other detergents. Nirma uses a backward Integration
strategy that why the distribution channel of Nirma is wide range as it is available
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both in Rural as well as Urban areas. Nirma successfully extended its brand to other
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product categories like premium detergents -Nirma Super Washing Powder and
Detergent Cake, premium toilet soaps Nirma Premium, Nirma Sandal, Nirma Lime
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Fresh. Although it maintained if brand equity by sticking to its original pricing

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strategy. They also developed pink soaps for North and Green for south. The
consumers of Nirma were always loyal to the Brand because Nirma could analyses
the needs and the wants of the customers quite well. Nirma tries a lot to provide
awareness about their product, they provide information about their product.
Although they spend a less amount on their Advertisement but their ads are quite
catchy. Nirma as a brand is known for its high quality products in feasible price.

2. Competitive Strategy

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 Nirma applies its competitive strategy to achieve competitive advantage based
primarily on low cost and the correspondingly low selling prices of goods offered to
consumers in the Market. Nirma strategy is that of Cost leadership they always kept
their prices low their primary focus on cost reduction. They priced their first
product at Rest 3.5/ kg which is 3 times lower than HUL surf. They simply
dominated the market by providing their products at an affordable rate. Nirma
success was due to its focus on cost effectiveness. From the starting itself Nirma has
focused on selling high quality products at the lowest possible price. The company
continued keep improving their quality while cutting cost. To keep their production
cost minimal Nirma sought captive production plants for raw material. They set up
2 plants one in Zadora and another one in Bhavnagar which came into operation

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from 2000 which also resulted in decline in raw materials costs. Nirma also kept the

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budget for their Advertisement minimal. For their advertisement itself they didn’t

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used much known faces that time. For further cost reduction Nirma opted for in
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house printing and packaging by acquiring Industries.
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