NIRMA: JOURNEY TOWARDS THE MILE STONE OF

CUSTOMER SATISFACTION
INTRODUCTION
Starting as one product, from a room in backyard in 1969 and made a detergent name
“NIRMA” after his daughter name Nirupama. In 1969 Dr. Karsanbhaipatel, at Gujarat
government department of mining and geology manufactured phosphate free detergent
powder, started selling it locally. NIRMA is a group of companies based in city of
Ahmedabad in western India that manufacture product ranging from cosmetics, soaps,
detergents, salt, and many more. Today NIRMA has over 18000 employees and turnover of
Rs. 3550crores. In 2004, NIRMA, detergent approach: 800,000 tonnes one of the largest
volumes sold in the world under single brand name.
Problem Statement: “NIRMA proving to be dominant in countering to the marketing
strategies of its rival companies”
Major&Minor Facts: Some of the major and minor facts in the case study are:
1. Price-led Marketing Strategy which clearly explains the law of demand (ATL and
BTL strategies)
2. Money Back guarantee
3. Cost Reduction Strategy
4. Different Pack Sizes
5. Expanding Portfolio
SWOT Analysis of NIRMA
Strengths:
1. NIRMA carved a niche for itself in the lower-end of the detergents and toilet soap
market.
2. The USP of NIRMA is its ability to provide the product at low price without
compromising with the quality
3. The brand name ‘NIRMA’ became almost synonymous with low-priced detergents
and toilet soaps.
4. Offer products for both economy segments & premium segments at comparatively
lower price as compared to competitors
5. NIRMA did everything to create a low-cost product – A high level of backward
integration leading to captive supply sources
Weaknesses:
1. Conflicting brands NIRMA and Nima
2. Brand image of NIRMA- recognized as a low-priced
Opportunities:
1. Diversify in other consumer products – Liquid hand soap (with enhance antiseptic ) –
Liquid detergent – NIRMA Bleaching Powder(An agent that makes things white )
2. Export to developing /neighboring countries.
3. Increase market share in premium segment products.
4. Expand in vacuum areas. – Urban market for premium segment products – Rural
market for economy segment products
Threats:
1. Guerilla attack from local and independent producers.
2. road attack from HUL and P&G
3. With growth in the size, arise the challenges of organization and control.
4. NIRMA needs to focus on these challenges and see how it can retain some of its
nimbleness and yet reap the advantages of size, such as the economies of scale.
Suggestions/Recommendations: Diversify in other FMCG products initially
soap/detergent based and later on in other products like toothpaste, Hair oil etc.
1. Increase advertising budget
2. Come up with a new ad campaign and try to change its brand image from low priced
brand to a high value brand
3. Work in partnership with FMCG companies in other countries to increase sales.
Questions:
1. What made NIRMA as successful Brand?
A: The NIRMA is successful as a brand because of some points:
1. Its positioning strategy
2. Aggressive Advertising
3. Popular Jingle theme
4. The name itself
5. The distribution network
6. The door-door delivery system
2. How quality cost and value helped NIRMA to establish its brand in

the market?
A: The quality and cost of the brand NIRMA helped to sustain its brand mainly in the
rural market where it turned out to be the unanimous leader which helped it to sustain the
field of detergent and soap industry for a long time. Once the MNCs started to lay their
foot into this field, NIRMA changed its standing of doing the publicity by not word of
mouth by aggressive advertising which helped in regaining the brand position as well as
loyalty in the customers.
Conclusion:
The time changes, the customers’ tastes, preferences and habits everything changes, but
matching to the customers’ expectations makes a very difficult job for the marketing firms to
come up with brand rejuvenation strategies which help them to be intact into the market with
a best experience and satisfaction.