Case Study
NIRMA WASHING POWDER
Introduction
Nirma Washing Powder | Parent Company | Nirma Ltd | Category | Home Care brands- detergents | Sector | FMCG | Tagline/ Slogan | ‘Sabki Pasand Nirma, Washing Powder Nirma’ | USP | Product with low price without compromising on quality | STP | Segment | Economy Segment | Target Group | All Indian households and laundry stores | Positioning | Quality at very affordable price | SWOT Analysis | Strength | 1. Strong brand equity developed over the years
2. Wide distribution network
3. Market leadership in detergent market (mid priced segment)4. Highly successful initial advertising campaign
5. In 2004, Nirma's detergent approached 800,000 tonnes – one of the largest volumes sold in the world – under a single brand 'NIRMA'. | Weakness | 1. Limited export market as compared to international brands
2. Unable to completely penetrate in premium segment because of image | Opportunity | 1. Export to developing /neighboring countries
2. Increase market share in premium segment by launching variants | Threats | 1. Guerilla attack from local and independent producers
2. Broad attack from HUL and P&G
3. Growing income levels of India can cause shift to premium segment washing powders | Competition | Competitors | 1.Ariel
2.Surf Excel
3.Tide
4.Wheel |
Nirma started by Dr.Karsanbhai Patel in 1960, is amongst the successful Indian brand. Truly. An indigeneous company and brand that gave tough fight to the international companies like HUL, P&G and Henkel. HUL is a pioneer in Indian detergent market. It launched first synthetic detergent, Surf, back in 1959 and soon acquired national leadership position. When Nirma entered into the detergent market, HUL ignored the product with an excuse that HUL could never enter into such a cheap segment. However, Nirma’s immediate success changed the opinion of HUL’s executives.
Nirma clearly hit the fortune at the bottom of the pyramid as proposed by
Introduction
Nirma Washing Powder | Parent Company | Nirma Ltd | Category | Home Care brands- detergents | Sector | FMCG | Tagline/ Slogan | ‘Sabki Pasand Nirma, Washing Powder Nirma’ | USP | Product with low price without compromising on quality | STP | Segment | Economy Segment | Target Group | All Indian households and laundry stores | Positioning | Quality at very affordable price | SWOT Analysis | Strength | 1. Strong brand equity developed over the years
2. Wide distribution network
3. Market leadership in detergent market (mid priced segment)4. Highly successful initial advertising campaign
5. In 2004, Nirma's detergent approached 800,000 tonnes – one of the largest volumes sold in the world – under a single brand 'NIRMA'. | Weakness | 1. Limited export market as compared to international brands
2. Unable to completely penetrate in premium segment because of image | Opportunity | 1. Export to developing /neighboring countries
2. Increase market share in premium segment by launching variants | Threats | 1. Guerilla attack from local and independent producers
2. Broad attack from HUL and P&G
3. Growing income levels of India can cause shift to premium segment washing powders | Competition | Competitors | 1.Ariel
2.Surf Excel
3.Tide
4.Wheel |
Nirma started by Dr.Karsanbhai Patel in 1960, is amongst the successful Indian brand. Truly. An indigeneous company and brand that gave tough fight to the international companies like HUL, P&G and Henkel. HUL is a pioneer in Indian detergent market. It launched first synthetic detergent, Surf, back in 1959 and soon acquired national leadership position. When Nirma entered into the detergent market, HUL ignored the product with an excuse that HUL could never enter into such a cheap segment. However, Nirma’s immediate success changed the opinion of HUL’s executives.
Nirma clearly hit the fortune at the bottom of the pyramid as proposed by