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The Nirma Story: Specific Instructions

This document provides general and specific instructions for submitting an assignment. It states that the assignment should be answered in handwritten form within the specified word count and submitted by the specified deadline. It also notes that failure to follow the five instructions will result in rejection of the assignment. It then provides a document discussing the origins and history of Nirma, an Indian detergent company that began humbly in 1969 and grew to capture a significant market share, initially in detergents and later in toilet soaps, undercutting the prices of established competitors.

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114 views1 page

The Nirma Story: Specific Instructions

This document provides general and specific instructions for submitting an assignment. It states that the assignment should be answered in handwritten form within the specified word count and submitted by the specified deadline. It also notes that failure to follow the five instructions will result in rejection of the assignment. It then provides a document discussing the origins and history of Nirma, an Indian detergent company that began humbly in 1969 and grew to capture a significant market share, initially in detergents and later in toilet soaps, undercutting the prices of established competitors.

Uploaded by

fkkfox
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Specific Instructions:

Answer all the questions mentioned at the end of the case.


Marks allotted 100. Each Question carries equal marks.
Word limit is 250 - 400 words

General Instructions:
The Student should submit this assignment in the handwritten form (not in the typed format)
The Student should submit this assignment within the time specified by the exam dept
Each Question mentioned in this assignment should be answered within the word limit
specified
The student should only use the Rule sheet papers for answering the questions.
The student should attach this assignment paper with the answered papers.

Failure to comply with the above Five instructions would lead to


rejection of assignment.

_____________________________________________________
The Nirma Story
"It all started to earn a side income, and at that stage, I had never imagined this kind
of success."
- Karsanbhai Patel, CMD, Nirma Ltd.
"Like other FMCGs, we have not concentrated only on marketing strategy. From the
very beginning, operational strategy in cost containment, backward integration,
economies of scale, innovative production, packaging and penetration schemes have
received equal attention."
- Hiren K Patel, CMD, Nirma Consumer Care Ltd. (Nirma's marketing arm)
Introduction
In the early 1970s, when Nirma washing powder was introduced in the low-income
market, Hindustan Lever Limited (HLL)1 reacted in a way typical of many
multinational companies. Senior executives were dismissive of the new product:
"That is not our market", "We need not be concerned." But very soon, Nirma's success
in the detergents market convinced HLL that it really needed to take a closer look at
the low-income market.
The company launched toilet soaps for the premium segment. However, analysts felt
that Nirma would not be able to repeat its success story in the premium segment. In
2000, Nirma had a 15% share in the toilet soap segment and more than 30% share in
the detergent market.
A Humble Beginning
In 1969, Karsanbhai Patel (Patel)2, a chemist at the Gujarat Government's Department
of Mining and Geology manufactured phosphate free Synthetic Detergent Powder,
and started selling it locally. The new yellow powder was priced at Rs. 3.50 per kg, at
a time when HLL's Surf was priced at Rs 15. Soon, there was a huge demand for
Nirma in Kishnapur (Gujarat), Patel's hometown.

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