case study 3 nirma

8/4/2019 Case Study 3 Nirma

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Case Study on Nirma

Prof. V.S. Bhakre

Management Consultant & VisitingFaculty



NIRMA → “MADE FOR INDIA.” STRATEGY.

Technology Must Alter The Lifestyles of A Significant Mass of People.

With In 3 Years of Entry The Size of Detergent Market shot up 7 Times

Why? It Was Giving A Detergent To The Masses @ Rs. 9/Kg Vs Surf Rs. 27/kg.

A Poor Soul Who Spent Her Mornings Bashing The Clothes on a Stone DiscoveredConvenience.

Nirma Dominates in Its Own Way.

7th Amongst India’s Largest Brands - Rs. 1182 crores.

Nirma- Rankes 23 rd 2→Rs 459 crores.



Fabric Wash Market- India

i. One of the world’s largest fabric wash market.

ii. Sunlight Soap (H.L.L)-Manufactured Since 1934- sold for both

personal, Cloth washing, Tata’s 501.

iii. In 1969- Karsanbhai- committed to make Nirma- one of the biggestin the world. HLL Laughed at IT- produced 200kg/ day. Sold on bike.

iv. Strategies Used- Marketing Mix- 4 P’s→ created “AHA” Effect - Valuefor Money.



NIRMA’S User Base Exceeds 400 Mio People.

A number even Global leaders ENVY

A testimony to Karsanbhai Patel’s Strategy – Value For Money.

Nirma Gave Emotional Benefit That Actually Changed Life Styles.

Aim For “AHA” Effect.

See A GAP & Fulfill the Need & Use It as an Opportunity

“Made For India” Strategy



Nirma → H.L.L’s Arch Rival

i. Mr. S. M. Datta- Chairman- H.L.L. 1991 Complimented- Karsanbhai Patel ForHelping the company to develop Its Agility & Competitiveness.

ii. In 1997- Mr. S. Sen- Ex. MKTG Director Stood In front of a small store in a Remotevillage near Ghaziabad Shop Keeper serving a small boy with a plastic Bagcontaining “Nirma” Powder from a gunny Bag.

iii. During 80’s Nirma - Biggest detergent brand in India & one of the Biggest In the

world. H.L.L had to Fight Back But too late !



Marketing Mix→ Product - 1985SURF NIRMA

Active Ingredient Double(2x) Single (x)Builder Yes No

Buffer Yes No

Whitening Agent Yes No

Anti Re-disposition Agent Yes NoPerfume Yes No

After wash (cloth) Soft Harsh

Hand No Action Blisters Skin Irritancy

1997- Sold →1/3 rd volume of surf

65% SODAASH



Production:-

ii. Soda Ash, Other Raw Materials on Cash with Discounts

iii. Dumped on the Floor, Mixed with hand.

iv. Enjoyed 15% Excise Duty Benefit.

v. Mechanization only After Crossing Excise Limit.

vi. Powder manually packed in poly bags (outside).

vii.Workers changed every 3 months to avoid chemical reaction.

viii.Production continuous- 8am- 6pm all days Incl Sunday.

i. Active Ingredient (LAB- Sulfonate)- Contracted To SmallScale



2 Placement- Distribution.

H.L.L. Nirma

40 C & F Agents District Level Distributor

4000 Stockists

3,00,000 Retailers & Whole Salers Stockist

To Avoid CST- Stockists Appointed As Commission Agent

Stockists- to Qualify As Commission Agents Min 100 Tons/Month- if Required moreAdvance Notification

If Payment not received by DD advance (30 th ) -15P/ Bag Interest

Deposit-10P/Bag on all Nirma sales transport; Octroi. Stockist Accounts



Promotion-Stockists Funded(50%)

Loyal Stockists- even when sales Declined Stood with Nirma

Advertisement- Sangeeta Bijlani –value for money

To create Demand- Young Women .Were hired to visit retail shops & ask for “Nirma”. DET - “Aha Effect.”

Price:- Nirma : Surf→ 1:3

Result:- Market Share.

Surf Nirma

1975 40.8 -

1977 30.6 11.9

1980 21.8 31.0

1985 8.4 58.1

1987 7.4 61.6

1989 6.7 54.6

i. Lower Cost/ Wash.

ii. Converted unorganized Laundry soap MKT in

Urban More so in Rural.

iii. Nirma Squeezed HLL From Bottom & Ariel fromthe top Micro Enzyme

case study 3 nirma

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