‘Nirma’. Also the detergent was launched
at a low price of Rs 3/kg whereas the nextcheapest detergent at that time was Rs.13/kg. The use of penetration pricing
worked for ‘Nirma’. In terms of
distribution, Karsanbhai Patel started theroute of door to door selling which was aneffective way to reach the target segment.
The advertising campaign of ‘Nirma’ usesthe jingle “Doodh Si Safedi Nirma Se Aayi”
is so popular among the masses, using thepurity and colour of milk to symbolise thepower of Nirma in a metamorphic manner.Nirma became a huge success and all this
was a result of Karsanbhai Patel’s
entrepreneurial skills.Karsanbhai Patel had good knowledge of chemicals and he came up with Nirmadetergent which was a result of innovativecombination of the important ingredients.Indigenous method was used ,and also thedetergent was more environment friendly.Consumers now had a quality detergentpowder , having an affordable price tag.The process of detergent production waslabour intensive and this gave employmentto a large number of people. Nirmafocused on cost reduction strategies tomake a place for itself in the market. Nirmahas always been known for offering qualityproducts at affordable prices and thus
creating good value for the consumer’s
money.The high quality and low price of thedetergent made for great value. Fuelled byhousewife-friendly advertisement jingles,Nirma revolutionized the detergentmarket, creating an entirely new segmentin for economy detergent powder. At thetime, detergent and soap manufacture wasdominated by multinational corporationswith products like
by Hindustan Lever,priced around Rs. 13 per kg. Within adecade, Nirma was the largest sellingdetergent in India. Since production waslabour intensive, Nirma also became aleading employer (employing 14,000people 2004). Made without somephosphates, Nirma was also somewhatmore environment friendly.In the 1980s Nirma moved ahead of Surf, adetergent by HLL , to capture a largemarket share. Nirma went on to becomethe largest detergent and the secondlargest soap company in India. Nirma hadmore than 35% market share in thedetergent segment and around 20 %market share in the toilet soap segment.The company got listed on the stockexchanges in the year 1994.