Nirma : Case Study

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"Persistence can grind an iron beam down into a needle".

 

'Nirma' now a brand name in consumer products specially in washing powder was started by a single person from his home from a small village near ahmedabad. Now Nirma has an annual turnover of around ₹ 5,000 crores with more than 15,000 employees and more than 10 diversified products. This company holds around 28% market share in detergent powder with a reach in all over India.

History- It was the year 1969 when a Gujrat state government employee Karsan bhai Patel started manufacturing Washing powder at home and used to sell it by own on his way to job. It was the time when multinational company Hindustan Unilever was dominating detergent market. Detergent powder was out of middle class reach due to high prices as Hindustan Unilever was charging ₹ 14 per kg for washing powder. Karsan Bhai used to sell washing powder at just ₹ 3.5 per kg and offered for refund if not satisfied with the quality. It led the middle class and lower class to think on. 'Nirma' came into existence only when Karsan Bhai Patel named his product 'Nirma'. Nirma got much appreciation in local market. Due to increase in demand Karsan Bhai Patel resigned from Government job and decided to devote full time to Nirma. Karsan Bhai Patel approached local whole sellers for distribution of Nirma products and supplied them Nirma products on credit. Sale of Nirma increased rapidly but due to liberal collection policy amount could not be realised. Karsan Bhai was now facing financial crisis. To overcome the crisis he decided to stop supply to whole sellers and spent heavy amount on television advertising. In very short span of time Nirma became popular brand name and due to heavy demand whole sellers started to purchase on cash basis. Nirma has emerged as the leader in washing powder segment competing multinational company Hindustan Unilever by 1990.

Who was Nirma Girl  ?- Have you ever noticed that A dancing girl is there on washing powder packets since Nirma was started. This girl has became the brand symbol of Nirma and was the reason behind the popularity of Nirma on Television advertisements. Anupama daughter of Karsan Bhai Patel was died in a road accident. It shocked Karsan Bhai and he decided to make her name immortal. He named his washing powder 'Nirma' the nick name of his daughter Anupama.

Nirma came into existence and became a brand name only because of the craziness of a man Karsan Bhai Patel who persistently stand even in odd conditions seeing many ups and downs. Nirma became a global brand name while facing a tough competition from Hindustan Unilever like multinational companies. Now this company has a dominating market share in India and has a significant market share in global detergent market.

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