Scribd
Upload
144 views3 pages

Nirma Case

The document analyzes Nirma's brand equity and competitive strategy. It discusses Nirma's brand awareness, perception, experience, and loyalty, which were built through effective distribution channels and affordable prices. Nirma dominated the detergent market and had high brand recognition. It also analyzed Nirma's competitive strategies, including large production capacities, direct distribution eliminating intermediaries, product diversification, cost-effective acquisitions, and focus on cost-effectiveness to provide quality products at low prices. Nirma established a strong brand and competitive position in India through these strategies.

Uploaded by

DEVASISH
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
144 views3 pages

Nirma Case

The document analyzes Nirma's brand equity and competitive strategy. It discusses Nirma's brand awareness, perception, experience, and loyalty, which were built through effective distribution channels and affordable prices. Nirma dominated the detergent market and had high brand recognition. It also analyzed Nirma's competitive strategies, including large production capacities, direct distribution eliminating intermediaries, product diversification, cost-effective acquisitions, and focus on cost-effectiveness to provide quality products at low prices. Nirma established a strong brand and competitive position in India through these strategies.

Uploaded by

DEVASISH
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
You are on page 1/ 3

The analysis of the case based on brand equity and competitive strategy is as follows:

Brand Equity:

Brand association: Nirma dominated the detergent powder market, simply by making the product
available at an affordable price.

Brand Awareness: Nirma success in the highly competitive soaps and detergents market was attributed
to its brand promotion efforts, which was complemented by its distribution reach and market
penetration. Nirma's network consisted of about 400 distributors and over 2 million retail outlets across
the country. This huge network-enabled Nirma to make its products available to the smallest village.

Perceived Quality: According to a survey conducted by Samsika Marketing Consultants, a marketing


firm, Nirma was considered to be a cheap brand. Many people were almost ashamed to admit that they
were using it.

Brand experience: Nirma always preferred to place the product on the shelves first, receive feedback,
and then create an enduring ad campaign.

Brand loyalty: Nirma was a major consumer brand – offering a range of detergents, soaps and personal
care products. In keeping with its philosophy of providing quality products at the best possible prices,
Nirma brought in the latest technology for its manufacturing facilities at six places 3 in India. Due to
cost-effective techniques, the lower end of consumers had loyalty towards the brand.

Competitive Strategy

(i) Large plant capacity: Nirma had a capacity of producing three lakh tonnes of pure salt. No one,
except Tata Salt, has a similar plant in the country.

(ii) Effective use of distribution channels: Nirma curtailed its costs of distribution by eliminating
intermediaries. The product went directly from the factory to the distributor.

(iii) Diversification of products: In the mid-nineties, Nirma successfully extended its brand to other
product categories. They had premium detergents (Nirma Super Washing Powder and Detergent Cake),
premium toilet soaps (Nirma Premium, Nima Sandal, Nirma Lime Fresh).In 2000, the company entered
the hair care market with Nirma Shikakai, Nirma Beauty Shampoo, and Nirma Toothpaste.

(iv) Cost-effective mergers and acquisitions (M&A): In March 2000, in a further cost reduction exercise,
Nirma opted for in-house printing and packaging by acquiring Kisan Industries at Moriya, near
Ahmedabad. Nirma hoped this would improve the quality of its packaging.

(v) Distribution Channel: Nirma success in the highly competitive soaps and detergents market was
attributed to its brand promotion efforts, which was complemented by its distribution reach and market
penetration. Nirma's network consisted of about 400 distributors and over 2 million retail outlets across
the country. This huge network-enabled Nirma to make its products available to the smallest village.

(vi) Cost-effectiveness model: Nirma success was attributed to its focus on cost-effectiveness. From the
very beginning, Patel had focussed on selling high-value products at the lowest possible price. The
company endeavoured to keep improving quality while cutting costs.
22222

Q. Nirma Case Analysis on the basis of following: 1. Brand Equity 2.


Competitive strategy
Ans. Nirma Group of companies is based in west India, in Ahmedabad
state of Gujarat. They are known for making products ranging from
cosmetics, soaps, detergents, salt, soda ash, LAB and Injectable. It started
selling detergent at Rs. 3.50 per kg whereas it’s stiff competitor Surf by
HUL was selling at Rs. 15 per kg. Within few years, Nirma became so
popular that a minimum of 20 packets were sold on a daily basis just by
word of mouth publicity. By 1985, Nirma washing powder had become one
of the most popular, household detergents in many parts of the country. In
the 1999, Nirma saw a boom. It became a very popular brand of soaps,
detergents and personal care products. Nirma was and is still known for its
strong distribution network in India. It has 400 distributors and is available
in over 2 million retail outlets in the country Within three decades Nirma
became a Rs. 17 billion company and Karsanbhai Patel’s policy of ‘giving
customer the quality product at the right time at a low-price rate’ was a
huge success.  Nirma faces stiff competition in the country today. It has
made many variants to its products to keep up with other brands and has
used technology to survive in the market as well. Currently, Nirma faces
competition from: 1. 2. 3. 4. 5.

Surf Tide Wheel Active Ariel Henko and many others


The brand Nirma Nirma countered competition from HUL/HLL at a very early stage and targeted
the middle and lower class markets of the country with the detergents and toilet soaps. Later
and today, Nirma has changed its strategy and makes products for both the sections of the
society – Lower class and Upper class. It has launched a segment of premium products to
target this section of the society. In the year 2000, Nirma had 15% share in the toilet soap
category and 30% share in the detergent market. The formula used by the brand to create
soaps and detergent is phosphate free and is environment friendly. It also, priced low against its
competitior without compromising on quality. Therefore, Brand Nirma becomes synonomus to
its philosophy of providing quality products at the best possible prices. This lead to a strong
brand equity for the brand and hence has been able to create its niche. The immense success
of detergent powder led to the launch of detergent cakes in the year 1987. In keeping with its
philosophy of providing quality products at the best possible prices, Nirma brought in the latest
technology for its
manufacturing facilities at six places in India. To keep production costs at a minimum, Nirma
sought captive production plants for raw materials. This led to the backward integration
programme, as a part of which, two state-of-the-art plants were established at Baroda and
Bhavnagar, which became operational in 2000. This resulted in a decline in raw-material costs.
Promotions and Marketing by Nirma Nirma had innovative marketing strategies. In the mid-
nineties, Nirma successfully extended its brand to other product categories like premium
detergents (Nirma Super Washing Powder and Detergent Cake), premium toilet soaps (Nirma
Premium, Nima Sandal, Nirma Lime Fresh). It followed its original marketing and pricing
strategies in the economy segment as well as in the premium segment. In 2000, the company
entered the hair care market with Nirma Shikakai, Nirma Beauty Shampoo, and Nirma
Toothpaste. Unlike detergents, soaps were a personal-care product. Many customers had deep
psychological bonds with their soap brands. Moreover, the market was segmented by HLL by
price, by scent appeal, and by brand personality. Nirma has had a very aggressive marketing
and promotional strategy since the very beginning. So, it positioned Nirma Bath against
Lifebuoy, Nirma Beauty Soap against Lux, Nima Rose against Breeze, and Nima Lime against
Jai Lime. It includes both Above the line (ATL) and Below the line (BTL) activations. They have
been very prompt in doing TV commercials as well as print media. They are also very actively
present on digital platforms and have a good social media presence as well. The Nirma girl from
the product packaging has been very prominent and is remembered by everyone. Nirma also
has very catchy jingles which have been with the brand for decades. ‘Doodh si safedi Nirma se
aaye, rangeen kapda bhi khil khil jaye’ and ‘Hema, Rekha, Jaya aur Sushma sabki pasand
Nirma’ have been two of the most popular jingles of all time. https://youtu.be/6d4BHFM_cdA
https://youtu.be/0Cy7-5iKRf0 The current tag line of the brand is ‘Naye Zamane Ke Ziddi
Daagon Ke Liye’ and the current brand ambassador is Bollywood superstar Hrithik Roshan.
“The brand has been positioned as an advance washing powder for the new generation
Indians.” The below statement was given by Mr. Anand Karir, creative mentor, advertising
agency Boing on the recent ad campaign by Hrithik Roshan: “We definitely didn’t want to show
the stereotypical shot of women washing clothes in our ad. Hence, we decided to feature a male
celebrity. Dance and action sequences are two activities celebrities do that very often lead to
sweat and stains. We chose dance, since it not only connects well with the new generation but
also builds on the parent brand ‘Nirma washing powder’ campaign defined by a great jingle and
the famous dancing girl mascot”

You might also like