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08, 26, 27
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Brand Tracking –Nirma PGDBA-A Roll No. 08, 26, 27
Table of Contents
1 Title 1
2 Introduction 3
8 The Conclusion 15
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Brand Tracking –Nirma PGDBA-A Roll No. 08, 26, 27
Introduction
Nirma is one of the few names - which is instantly recognized as a true Indian
brand, which took on mighty multinationals and rewrote the marketing rules to win the
heart of princess, i.e. the consumer. Nirma, the proverbial ‘Rags to Riches’ saga of Dr.
Karsanbhai Patel, is a classic example of the success of Indian entrepreneurship in the
face of stiff competition. Starting as a one-man operation in 1969, today, it has about 14,
000 employee-base and annual turnover is above Rs.25,000 crores.India is a one of the
largest consumer economy, with burgeoning middle class pie. In such a widespread,
diverse marketplace, Nirma aptly concentrated all its efforts towards creating and
building a strong consumer preference towards its ‘value-for-money’ products.
It was way back in ‘60s and ‘70s, where the domestic detergent market had only
premium segment, with very few players and was dominated by MNC’s. It was 1969,
when Karsanbhai Patel started door-to-door selling of his detergent powder, priced
at an astonishing Rs.3 per kg, when the available cheapest brand in the market was
Rs.13 per kg. It was really an innovative, quality product – with indigenous process,
packaging and low-profiled marketing, which changed the habit of Indian housewives’ for
washing their clothes. In a short span, Nirma created an entirely new market segment in
domestic marketplace, which is, eventually the largest consumer pocket
and quickly emerged as dominating market player – a position it has never since
relinquished. Rewriting the marketing rules, Nirma became a one of the widely
discussed success stories between the four-walls of the B-school classrooms across
the world.
The performance of Nirma during the decade of 1980s has been labelled as
‘Marketing Miracle’ of an era. During this period, the brand surged well ahead its nearest
rival – Surf, which was well-established detergent product by Hindustan Lever. It was a
severing battering for MNC as it recorded a sharp drop in its market share. Nirma literally
captured the market share by offering value-based marketing mix of four P’s, i.e. a
perfect match of product, price, place and promotion. Now, the year 2004 sees Nirma’s
annual sales touch 800,000 tones, making it one of the largest volume sales with a
single brand name in the world. Looking at the FMCG synergies, Nirma stepped into
toilet soaps relatively late in 1990 but this did not deter it to achieve a volume of 100,000
per annum. This makes Nirma the largest detergent and the second largest toilet soap
brand in India with market share of 38% and 20% respectively. It has been persistent
effort of Nirma to make consumer products available to masses at an affordable price.
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Hence, it takes utmost care to provide finest products at the most affordable prices. To
leverage this effort, Nirma has gone for massive backward integration along with
expansion and modernization of the manufacturing facilities.
The focal objective behind modernization plan is of up gradation with resource-
savvy technology to optimize capabilities. Nirma’s six production facilities, located at
different places, are well equipped with state-of-art technologies. To ensure regular
supply of major raw materials, Nirma had opted for backward integration strategies.
These strategic moves allowed Nirma to manage effective and efficient supply-chain.
Nirma has always been practiced ‘value-for-money’ plank. Nirma plans to extend the
same philosophy in categories as commodity food products, personal care products and
packaged food. Distinct market vision and robust infrastructure allowed Nirma to have
cost leadership. Apart from this, lean distribution network, umbrella branding and low
profile media promotions allowed it to offer quality products, at affordable prices.
In present scenario, an inspiring 59-year-old persona, Dr. Karsanbhai K. Patel, leads
Nirma, playing role of key strategic decision-maker, whereas his next generation has
already skilled management capabilities. Shri Rakesh K Patel – a qualified management
graduate, is spearheading the procurement, production and logistic functions, whereas
Shri Hiren K Patel – a qualified Chemical engineer and management graduate, heads
the marketing and finance functions of the organization. Shri Kalpesh Patel, Executive
Director, leads the professional organizational structure.
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Soaps
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Nirma Rose.
The remarkable and phenomenal market response received by Nirma Rose soap within
just two months of its launch once again proved the merits of Nirma’s commitment
towards its consumers. Nirma Rose soap has got an exceptionally soft rose fragrance –
which remains around body for a long time even after bath. The high TFM content of this
product allows a consumer to have pleasant bath. This brand had carved a niche in its
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segment by achieving leadership position just within two months of its launch. It is
available in 100g and 150g pack sizes.
Nirma Sandal.
Over the period, Indian toilet soap market has fragmented & has seen emergence of
prominent floral fragrance segments as Sandal, Rose, Jasmine, etc. Nirma Sandal is a
one of such product in floral segment. This toilet soap has 80% TFM content, with rich &
exotic fragrance. It promises benefits of Sandal oil & Turmeric powder. It is a premium
product from Nirma stable and is available in 100g and 150g packs
Detergents.
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created a loyal consumer base of its own and has established substantial amount of
volumes. It is available in pack sizes of 500g and 1000g pack sizes.
Nirma Popular Detergent Cake
The positioning of Nirma Popular Detergent Cake is similar to that of Nirma Popular
Detergent Powder. This product is available in 125g and 250g pack sizes, targeted to
first-time detergent cake user segment.
Edible Salt
Scouring Products
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Acquisitions.
Nirma Consumer Care, the wholly-owned subsidiary of Nirma, obtained the license
of the trademark Camay from Procter and Gamble Home Products (PGHP) for an
undisclosed license fee with effect from October 2002. The arrangement is valid for a
rolling period of five years and covers toilet soaps.
Camay constitutes one of PGHP’s leading brands among their portfolio and has
been one of the oldest brands in the PGHP stable dating back to 1926. In this era,
women prefer white soaps since many imported soaps have colour’s added to mask
impurities. For many years, Camay was advertised as “the soap of beautiful women.”
Camay was coined from the French word camee, which means cameo, the jewel. The
brand was launched in India in December 1993. Camay is available to consumers
across North America, Latin America, Europe, the Middle East, Africa and Asia.
Nirma has an exclusive arrangement to manufacture and market Camay for the Indian
market. Nirma’s distribution and marketing strengths coupled with the “strong legacy”
built by the company will infuse a fresh lease of life into the glorious history of Camay’s
brand equity.
Nirma has always been a forward-looking company and with the introduction of
Camay we have proven our unflinching commitment to our loyal consumers once again.
Nirma is now truly ready to set a new paradigm for the 21st century India.” Camay is
positioned as a premium product priced at Rs13 for a 100-gm bar. The soap is white-
coloured and has an excellent fragrance, which gives a unique soothing experience.
Camay contains milk cream, saffron and glycerin as key skincare ingredients. It will be
positioned as an international skincare soap that nourishes the skin and keeps it soft.
Nirma created markets for its products and through its unique offering of value for
money, Nirma converted a luxury into a necessity for Indian consumers.
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Promotion
Nirma's success is synonymous with its advertising and marketing strategy. When
Karsanbhai Patel started selling his detergent powder, he decided to call it Nirma,
derived from the name of his daughter Nirupama. In the early years, the Nirma packet
featured a lady washing a garment. Later, however, the design was changed and an
image of his daughter was featured on the pack. The white dancing girl, featured in
Nirma's television advertising, is perhaps the most enduring image of Nirma. Though Ms.
Patel passed away in a car accident, she continues to live on in the corporate logo and
the best selling brands of the company.
Nirma's advertising has always focused on the value-for-money angle. Its simple
and catchy jingle - Dudh si safedi Nirma se aye, rangin kapda bhi khil khil jaye - has
continued to echo in the drawing rooms of middle-class Indian homes through the
decades. While the jingle stresses on the product, it also salutes the savvy and budget-
conscious Indian housewife. It is one of the longest running jingles and the spot has
seen very few changes since the time it was first aired. For the re-launch of Nirma, the
company has developed new spots but they are variations of the old favorites. Once the
re-launch is complete, the company plans to go back to the original advertisement.
Nirma's promotion strategy, too, has many firsts to its credit. The company
pioneered product sponsorship through the electronic media. Besides, the company has
developed a unique advertising strategy - new products are launched with no advertising
support. Once the distribution glitches are sorted out and the product reaches the
shelves of retailers, the company begins to advertise it. The umbrella branding strategy
helps to give new products instant recall without increasing the advertising expense.
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Conclusion
Nirma believes in disciplined, serene and pleasant working environment. Such
environment helps to inspire the internal customers to deliver their best with greater
satisfaction. Empowerment, Equality, Security and Opportunity are the vital values which
organization infuses in its vast employee-base. The conventional wisdom at Nirma
empowers every employee to have autonomy in the way he can plan, organize and carry
out his work. Apart from these values, the management philosophy constitutes the
management ethos of high order. Developing human resources is a continuous process
at Nirma involving overseas training programmes, on-the-job orientation for the trainees,
in-house computer education and personality development sessions. The belief is that
all this makes an individual a better person, which in turn leads to better productivity and
a spirit of accountability and commitment in each member of the Nirma family.
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