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    21 views6 pages

    Nirma Washing Powder

    Uploaded by

    karan

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 6
    NIRMA WASHING POWDER The Power of Price-Quality Positioning There is a tide in the affairs of brands Which, taken at the flood, leads to fortune. (With apologies to William Shakespeare) When Nirma washing powder was but a gleam in the eye of Mr Karsonbhai Patel, the owner of this phenomenal brand, re- search studies undertaken by another company had already sug- gested that the market was ripe and ready for such a product. The first detergent powder launched in India in the early ‘fifties’ was Det. It did not acquire large volumes. Then came Surf, marketed with Hindustan Lever’s awesome power in sales promotion (home demonstrations, sampling), advertising visibility and distribution width. It was followed by TOMCO’s Magic. All these brands were high-priced in relation to other laundry products and well beyond the reach of the common man or woman. Their sale was confined, mainly, to upper-income groups. Nevertheless, between 1956 and 1966 sales of the category rosé nine-fold. Despite this impressive growth, no powders of any significance were available at a lower price. $80_ Brand Posting ‘serie oremall- eal escarch studies nderiaken during June and July 1972 to explore sore new product conceple for en orgeniad Sector company strongly suggested thatthe idee and lower mice lass Tndian housewife wea sick and tire of the ime and effort in robbing and erubing’ the dil household wash, She wanted product which would reduce the labour of waahing. Eve ocd roe with less rubbing, and be economical. 1 ive good revue Industry Model 4 ontptal del whieh was thought reer the ban Indes foutoeld's laundry washing bonavbur is sees'n Pests bok te ode ad Ssne an ere uth he ranaed Soy ey prods indigent te motes ge Ein products ten vale we poatinsd for ie ae Diteren! sve economize direst cpus Ino", thee! svi rondo nal ef 22 in onmant | ashy procs th sige dG copeahomm eae The worried ewtr produc’ 2 as nat omhne woe | ny acey hewn Ge moter Sede wane he hall wash bron ph on athe moe | expetiveltama ie mnths Cains ls wea ari dae PRODUCT USE GRADE! Sones AN SOAP POWDERS) | jase i sess GRADE! SOAPS wiDoLe INCOME ‘UpPeA INCOME | Figure 6 A model of the household marta fr laundry products, The Nima company saw the huge potential or & low cos! washing powder ‘represented by the mide and lower Income households, PostocingSuccessos_101 eget caanale © plot study among users of Sunlight table (Hho) Shoe crannies ‘Miich wosd you ize toon for washing the following ems: Bulk cottons More than 60% of the respondents, mostly from middle and lower income groups, said they would use a weshing powder for blends and pare synthetics, This was not unexpected. “The more revealing finding was thet though only 24% were current- ly wsing powders for their ‘Special cottons’ (or ‘Select vas in the lunguage of the model), ewowthirds would have liked to use powder. Even more interesting waa the fact that none was using powders at that time (1972) for the bulk wash, but 40% would have preferred to do so, The weakness of this study: a small sample? ‘There can be no doubt that the insightful Mr Patel had discovered the same truth on his own and had set about to break the mould, the ould being that an effective, good quality detergent powder could not be profitably marketed at a price to meet the aspirations of these less aifiuent households. Itis quite possible—and usually fashionable—to dismiss such small- seale studies (which included focus group discussions as well) as unreliable, Such disbelievers also apparently discounted the evidence which had earlier become available through a large-scale marketing «experiment that really shook up the sommnolent, complacent, detergent ‘washing powder industry. This had taken place in 1969, The Great Bucket Promotion ‘The moving spirit behind this event was Mr Pran Choudhury, then in charge of marketing for Swastik Oil Mills, a member of the Sarabhai group. This company had launched India's first detergent powder, Det, in the fifties. rapid growth of the washing powder market (nine-fold + Choudhury wondered how housewives from a broeder fave if they were offered a cheaper er detergent powder, Sway, which wat and was sold in Ikg and 2ke com rgin after variable cost was about Rs 500/Re 600 ne than for the other detergent powders, decided to offer this brend to the household market ilar to the other brands, However, instead al.—he could have priced Sway at about one rupee less for the large pack—he announeed what was then offer: for every six cartons of the large pack the consumer ‘The cost of this handsome y's higher margin and bulk supplier. 1969. In four months, Swey and fourth pasition to 18% share ‘on. This gain came mainly from Surf which was, by the marke: leader and partly from Magic and Det -go-scale surveys had © nt Sway was perceived being in} powders. This rable belief saat the de’ powder market hed viable price-quality position. Sway shattered this belie the ranks of the competitors, Committee discussion went like this, Well aller considering the change in markt shares upto Oecemoer, whl Go you think we We know and consumers know that Sway is ot as good as our brand, We nad thoughtiht ‘consumes would not compromise on qual But evidently they are willing to switch if they get some incentive like a lower price or 2 Rencsome git. We should immediatly inso Cuce a second brand similar to Sway and oft i 10 the consumer at a lower price or wiht anractive gts ike Sway. Sales Promotion I would immeciately tke to get an addon budget so that | can back our brand with th ‘same kind of incentive as Sway. Positioning Successes 189 | don't agroe. We have baen selling our brand fon the basis of is superior quality, We should + stop up our theme advartsing budget right ‘way 0 a8 to courtor Sway. We must con- ‘Vinge the consumer tmat by buying Sway she Is setling for an novo" product 1am atta it Sway continues at this rate, wo will find it vory cificut to meet our sale tar- ols. Wo must reply at once witha promotion as heavy as theirs. Product Manager ‘Sales Manager Mr Patel may or may not have heard of such conversations but he was such quicker to draw the lessons of history. Being a chemist he knew what he was about. His powder was made and packed by hand. Its ormulation-—while not being equal to the higher-priced powders— rade for a good quality product with plenty of cleaning and lathes properties. Tia price in 1975 was Re 6 per kg which was only slightly above the price of good quality or Grade I laundry soaps end compared to about Re 14/15 per lg for the premium washing powder brands. Nirme was launched in a tentative way in 1975 and proved that it was 2 ster within three years, Taken atthe Flood \Nirme took this good quality/low price position for washing powders atts ood. Is timing was inspired, Nirma went from virzus!y nothing in 1976 to 1,72,786 tonnes in 1988, with a market share cf about 60%. Its price in 1988 was Re S/kg compared to Surf's Rs 23/4g, tind 6-6 say itall. ‘The advertising for Nirma was limited to radio in its early days, From 1979-80 Nirma was heavily advertised in cinema, radio and is ‘now highly visible on TV. The Nirma commercial is pleasing and hes ‘jingle that is easy on the ear. It portrays young, attractive, modera and lively people in a simulated ballet (rather western, that), and this is followed by a visual demonstration of the whiteness and brightness which Nirma brings to clothes. There is no reference to price. (See Chapter 4.) ures 6-5 (Thousands of Tonnes) eae ‘gin tee, 102 nina SURF Figure eS volume: wood of Nie and Sut ‘

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