THE NIRMA STORY

GROUP-1
ABHAYAKRISHNA 19001
GAURAV MAHESHWARI 19019
KATTAMURI V N S JAYARAJYALAKSHMI 19025
RISHABH KUMAR 19043
Submitted to:
Dr. H Gayathri SHRADDHA TIWARI 19049
 About the company
• Nirma was founded in 1969 by Karsanbhai Patel.
• It was priced at Rs 3.50 per kg.
• It was named after Karsanbhai Patel’s daughter Nirupama.
• By 1985, it became one of the most popular detergent brands in many parts of the
country.
• Nirma became a Rs 17.17 billion company within 3 decades.

• MISSION: “Better Products, Better Value, Better Living”

• Tag Line: “Sabki pasand Nirma, washing powder Nirma”
 Road to success
• By 1970s, Nirma dominated the detergent powder market by making the
product available at an affordable price.
• In 1990, Nirma entered the Indian toilet soaps with it’s Nirma beauty soap.
• By 1999, Nirma became India’s second largest manufacturer of toilet by
acquiring a 15% share of the 5,30,000 tonnes per annum toilet soap market.
• By 1999-2000, Nirma had also garnered a 38% share of India’s 2.4 million
tonnes detergent market. HLL’s share was 31% for the same period.
 Road to success (contd.)
• Nirma’s success was attributed to it’s focus on cost effectiveness.
• Nirma focussed on selling high-value products at lowest possible price.
• The company endeavored to keep improving quality while cutting costs.
• Backward integration programme was adopted by the company.
• Nirma also curtailed its costs of distribution by eliminating intermediaries.
• In March 2000, Nirma opted for in-house printing and packaging.
 Road to success (contd.)

• In 2000, the company entered hair care market with Nirma Shikakai, Nirma
Beauty Shampoo.
• Nirma spent only 1.25-2% of its turnover on advertising as compared to the
normal 6-10%.
• Nirma always preferred to place the product on the shelves first, receive
feedback, then create an enduring and campaign
 The Road Ahead

• Nirma was better known as a producer a low-cost economy range of products, it

was successful in the middle-and up-market segments.
• In the past three decades, the brand had grown in value and volume on the basis
of their success formula.
• “A customer does not look for one-time frills or feel-good factors. Rather, the
householder wants long-term solution to his or her needs.”
 Products of NIRMA
• Detergents:
 Nirma washing powder and detergent cake.
 Super Nirma washing powder and detergent cake.
 Nirma popular washing powder and detergent cake.
• Soaps:
 Nirma bath soap.
 Nirma beauty soap.
 Nirma toilet soap.
• Nirma shikakai.
• Nirma Toothpaste
 Market shares(Toilet soaps)

Market Share(Detergents)
8%
4%
2% 7% 8%

15%
38% 65%
22%

HLL Nirma Godrej Wipro others

31%
Nirma HLL Others Henkel Spic P&G
 SWOT Analysis
Strengths: Weaknesses:
• Self-motivation • Prioritizing the tasks
• Resourcefulness • Procrastination
• Curiosity • Easily distracted
• Faith
• Risk taking
• Adaptability
• Team work and
determination

Opportunities: Threats:
• Placing in IT companies • Competition from sub-ordinates
• Own business • Obstacles to achieve my success
• New technologies that I don’t knwo
1)Will Nirma’s cost effective business model be successful in the
long run? Justify your answer.
2)There are many big players in detergents and personal care market in
India, which are giving tough competition to Nirma. How can Nirma
effectively counter this increasing competition?
3)By 1990,Nirma gained a sizeable foothold in the lower end of detergents
and toilet soaps market. Was it necessary for Nirma to enter the premium
segment? Give reasons for your answer.