This document provides information about Karsanbhai Patel, the founder of Nirma, and the history and operations of Nirma. It discusses that Karsanbhai Patel started Nirma in 1969 at age 25 by selling affordable detergent door-to-door. Nirma revolutionized the detergent market in India and became very successful. However, in later years Nirma lost market share as consumers began perceiving it as an inferior brand. Today Nirma has less than 6% market share in India's detergent market.
6. Hiren Patel
In 2014, he took a bold bet and guided his sons in
entering the cement sector with a new plant in
Rajasthan. He consolidated the business further in 2016
when Nirma acquired Lafarge India’s cement unit for
approximately Rs 9,400 crore ($1.4 billion) beating
established players like Piramal and JSW Cement.
Nirma buyout of LafargeHolcim's
7. Becoming
entrepreneur
Karsanbhai finished his B.Sc. In Chemistry at age 21 and worked
as a lab technician, first in the New Cotton Mills, Ahmedabad.
Then he worked at Geology and Mining Department of the state
Government.
Karsanbhai started selling detergent powder, manufactured and
packaged in his backyard.
Karsanbhai would cycle through the neighbourhoods selling
handmade detergent packets door to door.At a price of Rs. 3 per
kg.
He wanted to earn more than what he was earning at present.
So in 1969, at the age of 25, he started a small-scale enterprise.
He offered a quality detergent powder using indigprice
technology, at a third of the prevailing price.
8. Continuing….
He named the detergent powder Nirma after his daughter
Nirupama.
Nirma revolutionized the whole detergent powder segment and in
a short span of time created an entirely new market segment in
the domestic detergent sector market.
After three years, he felt confident enough to quit his job.
It gave the bigger established brands a run for their money and
soon occupied the top market share.
9. Sub products
After establishing its footprints in the economy-priced detergents,
Nirma entered the premium segment, launching toilet soaps:
Nirma bath & beauty soaps and a premium detergent, Super
Nirma.
The company also ventured into shampoo and toothpaste, but
were not as successful. On the other hand, the edible salt Shudh is
doing well.
Nirma beauty soap is one of the leading toilet soaps, behind
Lifebuoy and Lux. Overall Nirma has a 20% market share in soap
cakes and about 35% in detergents.
10. Nirma
Strategy
Product : Good quality at the best prices, It’s products are
available in many different sizes and quantities with the lowest
pack available of 70 gm.
Price : Nirma is one of the most affordable detergent and
washing brands in India.
Place : Present in both rural and urban areas , Nirma
currently has more than 350 distributors present in various regions
across the country. Its own vehicles for transportation of products
to the distributors to cut down on the costs and expenses .
Promotion : Promotional activities by Nirma have been very
aggressive with campaigns in all kinds of media be it traditional
channels likeTV, print media, radio, etc. “Washing Powder Nirma”
is one of the most popular taglines in the Indian.
11. After 1970-
2000
The Fall
Season
Nirma, despite being a 17 billion company started losing its
market share to the unbranded competitive rivals. It failed to
retain the interest of the consumers as low-cost products would
not work anymore since customers started perceiving such
products as cheap. They slowly tried to introduce Nirma blue and
Nirma cake but could not differentiate the product and its
positioning.
Unfortunately, the growing income level of Indian consumers
made them perceive Nirma as an inferior brand.While other
brands went viral with their unique advertisement campaigns and
diversified product lines, Nirma followed the same campaign and
failed to penetrate into the premium segment.
Consumer Perception – Consumers perceived Nirma
as an inferior brand as its products were available at a
low price.
12. Current
market share
Today, Ghari is the market leader in the detergent
industry, with a market share of 17.3% and Wheel is
tagging behind closely at 16.9%. Within the economy
segment, both Ghari andWheel are priced similar.
Tide is at present at the third position with a market
share of 13.5% and Nirma has less than 6% market
share.