“NIRMA CASE STUDY”

Marketing Management - II

Submitted By
Anand Kumar
19202313
MBA (Sem-II)

Submitted To
Prof. Dr. Kumar Mohanty
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. Surf
2. Tide
3. Wheel Active
4. Ariel
5. 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”