Nirma Case Studt Analysis

REALVALUE FOR MONEY AND IMPACT OF SWADESHI APPROACH
Brief Introduction of the case
This was not just a story about a Father Entrepreneur who lost his daughter in a car
accident. But, instead giving back and he found a line of attack to bring his daughter
back to being alive. It was shocking to know that very few people knew that he had a
daughter and she was died in an accident, but his sheer willpower and strength of mind
that made his daughter famous throughout India as well as the World, even though she
was no more.
This is the story of Karsanbhai Khodidas Patel, the son of a farmer born in a family of
farmers with limited resources but who immortalize his daughter’s name (Nirupama)
nickname (NIRMA) as India’s leading detergent. He used to work as a junior chemist
in a Government Laboratory. A 100-square-feet backyard, a bucket, some chemicals and
an enterprising mind were all that he had when he attempted the near-impossible. He
mixed the ingredients by hand to create a new, phosphate-free, environment-friendly
detergent powder. A man of valor and passion who proved that if you have the
determination, then nothing can stop you. Here is the story of “Sabki Pasand Nirma,
Washing Powder Nirma.”
Within 10 years, Nirma was topping the detergents market. Karsanbhai Khodidas Patel
was a visionary personality and so he diversified the business into various sectors such
as Salt, health care category with Nirlife, manufacturing intravenous fluids and life
saving drugs. It established its own Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin
Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric Acid manufacturing facilities
Strategies Adopted By Nirma
The success of Nirma started when he himself used to market the products what he
manufactured using bi-cycle through the neighborhoods, selling the homemade
detergent packets from door to door. This is the real success as he never relied on any
media as he himself is a Brand ambassador for the First time of his own product that we
see today this is being practiced by Many of the corporate giants. Though Mr.
Karsanbhai Patel was a not an MBA graduate himself, the tactics he followed to grow
his business, had left marketers bewildered and amazed.
Nirma started their market with price- led marketing strategy. They started with price
of Rs. 3/kg, when the available competitive brands ( Surf, Wheel, Sunlight and Tide) in
the Indian market was Rs. 13/kg. Mr. Karsanbhai Khodidas Patel bet India masses will
buy if its affordable. They firstly focus on rural area. This describe the LAW OF
DEMAND ie. when the price of the product decrease , demand for that product
increase. Every pack of Nirma came with money back Guarantee. Cost reduction
strategy of Nirma helps them to entre in market withes. 3/kg. it does not contain any
perfuming agent or active agent in ingredients. This is the reason they able to keep the
price low. Nirma relied on low cost technology, process and raw material.
Nirma was an instant hit because customers realised the benefits of buying the product.
They found the quality to be at par with the giant brand Surf yet they had to only pay
one-third of the price to avail the same benefits. Customers will like your product only
if you show them the benefits and provide them with the value for money.
Here the Nirma followed a Strategy of Down-Top Approach which suggests that he has
taken the product from Villages to the Towns and cities, this was a Game Changer for
the firm and it was huge Success as People accepted the product as he was proactive
and he himself marketed the product.
Major Turn Around of NIRMA
In the early 80s, though the product was accepted on a small scale in his local place
Ahmedabad, it was struggling to find sellers outside the city. Retailers were doubtful of
keeping the detergent in their stores since customers were unaware of its existence. It
resulted in delayed payments, inventory return and high losses to the company.
To tackle the situation, Karsanbhai Patel came up with a strong promotional strategy
and launched an advertising campaign on TV. The famous jingle “Washing powder
Nirma, detergent tikiya Nirma,Sabki Pasand Nirma” became an anthem for the
company and consumers started associating Nirma as a powerful brand. Soon the
demand for Nirma peaked, and Patel flooded the retail stores with his products.
Availability of Nirma washing powder in different pack sizes viz. 30 gms, 200 gms,
500 gms and 1kg for different segment of population is also another factor that
contributed the Success Story of NIRMA.
QUESTIONS
1. What made NIRMA as successful Brand?
There are many reasons for the success of Nirma but to me the real factors are its
distribution network. In some places, such as Andhra Pradesh, Tamil Nadu and
Southern Karnataka, Nirma has started maintaining depots, as getting stocks to these
places becomes difficult at times.
A culture of accessibility right from the early days is paying off now is also another
reason for its Success. The distributors are free to contact top management directly is
another factor what made a NIRMA a Successful brand.
Mass Media Advertising The famous jingle “Washing powder Nirma, detergent tikiya
Nirma,Sabki Pasand Nirma” its an appeal to all Indians with native approach which
attracted mass customers to the educated ones just like that.
Another reason is its Packaging Style as it is very easy to peel the detergent even when
our respective Indian Women are working.
Last but not the least as Indian Customers are Price Sensitive and these Products are
available at the Most competitive price when compared to the other brands in the
market.
2. How quality cost and value helped NIRMA to establish its brand in the
market?
The answer lies in its mission Statement as it provides, "Better Products, Better Value,
Better Living" contributed a great deal to its success. Nirma successfully countered
competition from HLL and carved a niche for itself in the lower-end of the detergents
and toilet soap market. When the Top Management is committed to Provide its best to
its Stakeholders (Customers) and the Stakeholders take the responsibility to reinforce its
Brand in the Market.
Conclusion
No matter what your product is but make sure that you give your best to position its
place not in the market but in the Hearts of Indian Customers as we (Indians) never
disappoint any Entrepreneur (Swadeshi) whether it is Bajaj or Nirma or Godrej. When
we are dedicated to satisfy the Customers and the Customers are Committed to protect
us by all means,

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REALVALUE FOR MONEY AND IMPACT OF SWADESHI APPROACH

Brief Introduction of the case

Strategies Adopted By Nirma

Major Turn Around of NIRMA

1. What made NIRMA as successful Brand?

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