…a dynamic

The Nirma Story

phenomenon,

…a philosophy,

…a revolution… Prateek chhabra (16)

Amit rai (10)
Kulvinder pathania (27)
that changed our lives!Shubhangi chouhan (61)
Ashish sonewane (29)
Gaurav chouhan (57)
The Beginning….
In 1969 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
them in polythene bags and then set off on his bicycle
to sell the packets door to door.
Every packet of Nirma that Karsanbhai Patel sold to
his consumers came with a money back guarantee.
The cost-conscious approach of the initial years was
to evolve into a strategic perspective.
Some Facts…
Nirma is named after Nirupama daughter of Dr.
Karansanbhai Patel
“Dudh si safedi Nirma se aye,
rangeen kapda bhi khil khil jaye”
Jingle used since last 35years
Same radio spot has been used consistently since
last 28years
Nirma is one of the largest selling single
detergent brands in the world
A different path
Identified new markets.

Expanded markets where others failed

Achieved penetration where others felt

consumers mind set could not be changed
Success Path
Value for money concepts
Rural focus
Flat, efficient, robust distribution
network
Multi dimensional aggressive marketing
and manufacturing strategy
Aggressive media strategy
Results
Value for money concept
Washing habits changed
Widespread conversion from oil soap
and soda ash to detergent powder
Size of detergent market in no time
multiplied manifold
Single product brand
Present Scenario
8manufacturing locations.
Amongst top 10 Indian Brands.
Nation wide Distribution reach.
o 400 Distributors
o 2000000 Retailers
o 40 Depots
Stronghuman resource base consisting of 14000
employees and 500 professionals.
Recognition
 This brand had been ranked as the “Most widely distributed
detergent powder brand in India” as per All India Census of
Retail Outlets carried out in 435 urban towns by the AIMS
(Asian Information Marketing & Social) Research agency
[Brand Equity - The Economic Times, March 11, 1997]. 
 As per the ORG-MARG Rural Consumer
Panel [December 1998] survey, Nirma brand has been
ranked as highest in terms of penetration in washing
powder category [BT Rural Market Watch, Business
Today, June 22, 1999].
 9th among Top FMCG brands of India ( A& M –MODE-
2002)
Products
Detergents: Spray dried powder, Compact dry
mixed, Cakes
Toilet Soaps: Beauty Soaps , Carbolic Soaps,
Premium Soaps
Packaged Foods: Iodized Salt
Industrial Products: LAB, Glycerin, AOS,
Sulfuric Acid, Sodium Silicate, Soda Ash,
Salt
Fertilizers: Single Super Phosphate
Marketing Strategy
Product Positioning: Nirma found its place between the
expensive detergents and inferior washing soap slabs.
The Nirma brand was quickly recognized in Gujarat and
neighboring parts of Maharashtra and the rest is history.

Pricing: Nirma transformed the face of Indian detergent

market by staging the strength of low-cost detergent
powder segment. The new yellow powder was priced at
Rs. 3 per kg, at a time when HLL's Surf was priced at Rs
13.

Distribution: Nirma targeted non-users of Surf thus

avoided the attention of HLL and later grew rapidly and
was unstoppable once it was in the right mode.
Financial Report
PARTICULARS 2009-10 ( Cr.) 2008-09 (Cr.)

SALES 3117.95 3030.17

PBT 276.32 118.33

PAT 237.94 93.43

* CURRENT SHARE PRICE - 219.15

Segmentation of Detergent market in Ind

Segmentation Of
Detergent
Powder Market

Mid – priced Mass Market

Premium
Surf Excel Blue, Tide, Nirma, Wheel and Fena
Ariel, Surf Excel Henko
Overview of Detergent
Industry
Total
detergent Market value- 13000 cr.
Market Share

*Others – Henkel, Nirma and Fena

*Source: DNA 9th Sep 2010
4 A’S of Rural
Marketing
AFFORDABILITY
 Offered good quality product at
unbeatable low prices
Price at almost one third to that of
competitor brand of resulting into instant
trail by the consumers
Cleansing power far superior to that of
slabs of cheap cleaning soaps
Breaking cost barrier
Cost competitiveness
◦ HLL’s surf was highly priced in India
during 1970’s
◦ Yellow powder was mixed manually in
workshops to get excise concessions.
◦ Managed with a workforce of 10,000 and
200 managers thereby trying to break the
cost barrier.
AVAILIBILITY
 350 strong sales force, a distributor strength of 400 and a
retail reach of over 1 million outlets

 Supply chain management-

◦ Adopted centralized packaging: Able to cut its inventory

costs by 40 %.
◦ Adopted flat distribution system: Nirma was directly
connected to distributors and no agents in between.
◦ Railway for bulk movements
Strategy
 Backward Integration
◦ After the withdrawal of the excise commission in 1982
Patel got into backward integration.
◦ Started manufacturing Sulphuric acid, Alfa olefin
Sulphonate, Fatty acid in 1983.
◦ 1990 Glycerin \ 1994 Packaging \ 1995 Single super
phosphate \ 1997 N Paraffin soda ash ,Industrial salt,
Edible salt, Captive power point.

 Sustainable advantage
◦ Low cost labor
◦ Superior processes
◦ Mindset of cost-conscious consumer
Marketing & Distribution
AWARNESS
Media Mix
OBJECTIVE
• Reach Geographical dispersed buyers

METHOD USED
• Advertisement
• Radio
• Wall painting
• Vans/Trains
• Direct and Interactive marketing
• Personal Selling
• Expert Channel –Changing Washing Habits.
• Product Demonstration
• Sales promotion
• Prize Draw
• Introduce bucket scheme to promote product hamper
• Money back guarantee promotion scheme
Promotion
 Nirma believes in advertising only after they have
launched a product in place.

 Nirma'sadvertising has always focused on the value-for-

money angle.

 In 1982 we witnessed the birth of the first film for the

brand, with the effervescent jingle. Its simple and catchy
–
“Dudh si safedi Nirma se aye,
rangeen kapda bhi khil khil jaye”

 Nirma spent only 1.25 - 2 % of its turnover on

advertising as of 6 – 10 % likewise other FMCG
companies.
Branding
Nirma followed its original marketing and pricing
strategies in both economy and premium segment.
Launched product categories like premium detergent and
premium toilet soaps in mid nineties and in 2000 entered
hair market like nirma shikakai, nirma beauty shampoo.
Challenged the biggest competitor, HLL by launching
nirma bath against lifebouy, nirma rose against breeze
and nirma lime against lime.
Manufactured soaps with right scents keeping prices low.
Geographical diversity – Pink soaps in north, Green and
sandal soaps in south.
In 1989 the second commercial featured the
superstar of those days, Sangeeta Bijlani, along
with models such as Shikha Swaroop and Anuradha
Patel. Used starlets like, Sonali Bendre and Riya
Sen for their beauty soaps
In 2005 a little change from its predecessors –
this was the food throwing ad (Hema, Rekha, Jaya,
Sushma). It lent names and profiles – to Nirma
housewives
The jingle being a part of Nirma’s communication,
was rarely tweaked with the swirl of Nirma girl in a
frock on the pack shot.
Other constants in a Nirma film included twirl of
saris by models in outdoor locations.
In 2009 Nirma wakes up and decides to
undergo a personality transplant. A whopping
Rs1.5 crore is spent on that thought.

 The result a 'underwater' commercial, which

showed dancers moving with flowing fabric - a
metaphor for clothes being washed in a bucket.

It did not use the iconic Nirma jingle.

Now, Nirma is back to talking about the dirt

tackling properties of the detergent, as well as
use the legendary 'Washing powder Nirma'
jingle.
ACCEPTABILITY
Better quality products
Cheaper in price
Easy availability
Value for money
Need fulfilled for lower and middle
lower class
STRENGTHS WEAKNESS

OPPORTUNITIES THREATS
Losing Business…..
Nirma suffers from the inability to innovate in
the product categories
With rising incomes, consumers are now
shifting from economy brands to aspirational
purchases.
The rivals have products across all price points
to mitigate the inputs cost effects while nirma
is available in only one plank-Value for money.
Suggestions
Introduction of family pack
Introduction of liquid detergent
Attractive packaging
Incentives to distributors
Any Questions….