Nirma Success Story & Strategies -How it Became “Sabki Pasand”

How Nirma Started? 

Whenever we used to see Nirma advertisements they just feel nostalgic. Those were the days when detergent products from Nirma were highly cheap and best. Now, we might know something about the brand but, there is surely an interesting story behind its introduction or start date.

The whole story starts in 1945 when Karsanbhai Patel was born into a farmer’s family in Ruppur, Gujarat. At 21 years of age, Karsanbhai Patel finished his B.Sc in Chemical Engineering and then immediately started working as a lab technician.

This is where all the ideas for his new venture came into his mind. Now, during the 1960s and 70s multinational detergent brands were selling detergents at very high prices which only the upper middle class could afford. 

This gave a bright idea to Karsanbhai Patel. Looking at the situation back in 1969, Karsanbhai puts aside Rs 7000 to invent a breakthrough detergent and he starts experimenting. Every day Karsanbhai used soda ash with different ingredients and mixed them to come up with a new formula.

One day he came out with his detergent formula and the result was a yellow-colored phosphate-free detergent. This product from Karsanbhai passed both the price and quality segments of its other competitors. 

Now, he decides to produce multiple packets of this detergent. He produced lots of such packets in his 100-yeard backyard. His only mission was to provide the best and cheap detergent to Indian customers. Now, to this genius product, he decided to name it after his daughter’s pet name, Nirma. So, this is how Nirma was started in the Indian market. 

Facts About Nirma

Here are some facts about Nirma:-

• Karsanbhai Patel quit his government job and started a network of 400 distributors
• Nirma also known as Nirupamma the daughter of Karsanbhai died in a tragic car accident 
• The initial Nirma advertisement aired on Doordarshan and it appeared in back-and-white 
• The new yellow powder established by Karsanbhai Patel was sold only for Rs 3.50 per kg at a time when HUL’s Surf was priced at Rs 13 per kg 
• Karsanbhai along with his business, Nirma was one of the first people in the country to use Money Back Guarantee marketing formula

Nirma Tagline & Logo

Nirma's tagline and logo is something that the 90’s kids or the early people will never forget. The tagline from this detergent brand was so catchy that people used to sing whenever they heard of this advertisement. Most of Nirma's advertisements had slogans in them but, it was never the same as it changed every decade. 

“Washing Powder Nirma” was the jingle and it was earworm to millions. This tagline has been used by the company for over four decades. The logo was an illustration of a girl in a white frock in front of the packet which was symbolic of her daughter. 

How Nirma Changed Indian Detergent Market?

The introduction of this brand and product in the Indian market changed the whole face of the detergent market. The major factor in how Nirma changed the Indian detergent market was its price strategy. Other prominent detergent brands like HUL Surf were selling detergent at Rs 13.50 per kg. Karsanbhai started selling his detergent at only Rs 3.5 per kg. 

This unique price point of Nirma detergent immediately gained the attention of everybody. It soon became the local favorite, especially for the middle-class and lower-income groups. The most interesting part is this one man was manufacturing, packaging, and distributing the detergent all from his 100-yeard room. But, things were quite smoother when he started his market chain with 400 distributors. 

After Karsanbhai opened up his first store, he decided to take Nirma to radio, and television to reach the masses. Nirma collaborated with Purnima Advertising Agency and came up with their slogan which is loved to date. The price strategy was then promoted to many people in the market. 

Nirma Success Story - Success Factors For Nirma 

Here is the success story of Nirma in the Indian market:-

Risky yet powerful decisions of Karsanbhai Patel - Karsanbhai opened up a chain of 400 distributors after quitting his government job. To expand his product, he came up with two strategies and they are Money back guarantee and credit sales.

Now, if people did not like Nirma after usage then they would get a full refund, this was a risky bet. To gain trust he started providing products in credit to retailers. This helped the retailers to get flexibility and they paid the money after all the products were sold at the end of the month. 

Early mover- Nirma was always an early mover in every field. He did face lots of competition from other brands especially from HUL’s Surf. To expand more in the market he started advertising not only on radio but on television as well. This helped share the knowledge of his products with lots of people in the Indian market. 

Innovation- Nirma’s greatest innovation was in its special chemical ingredient. Unlike any other detergent product in the market, using Nirma’s detergent the hands did not get rough. This solved a huge problem for the middle and lower middle classes in India. 

Nirma Girl Marketing Strategy- The best marketing strategy used by Karsanbhai is already mentioned above. His ad releases on television helped him gain lots of customers. The demand was always high on the market so Karsanbhai decreased their supply. Now, to raise the demand he did an advertisement campaign. This directly targeted the housewives which further became a household product. 

Powerful brand- After Nirma used their unique marketing strategies in the market. It soon became a powerful brand overcoming its other competitors in the market. Shopkeepers were bound to approach Karsanbhai for more products. Now, Karsanbhai first took full payment from shopkeepers and then gave them products. This helped Nirma to conquer 38% of the market share in India. 

Powerful Supply Network: Nirma’s unique marketing strategy increased its supply network. The Nirma brand is marketed through the first network, it consists of 40 exclusive distributors. 

Reasons Behind the Downfall of Nirma 

Nirma always faced lots of hardships in the detergent market. They did overcome all the hardships with unique strategies but, that did not help them in the long run. Here are some reasons behind the downfall of Nirma:-

• Economic change in the late 90s- When the Indian economy opened during that era, privatization was promoted. Due to this, people in the society started using products which were higher in cost. Nirma’s loyal customers shifted their taste and preference to the upper middle class so people went for detergents that were highly priced. 
• Lack of innovation- Due to a cost-effective product strategy Nirma was unable to come up with any new innovations to their product. On the other hand, Surf became Surf Excel and changed the look of its packet. 
• Removing the focus from prime product - Nirma’s biggest mistake was to exclude its focus from its prime product which was Nirma detergent. They opened up Nirma University back in 2003, started a pharmacy company in 2004, launched salt which was named Nirma Sudh, and in 2014 they started their Nirma cement business. Back in 2010, Karsanbhai without giving any notice delisted Nirma from the stock market. 

Nirma Valuation in 2023

As of the financial year ending on 31 March 2022, Nirma had revenue or turnover of Rs 500 crore. The net worth of the company increased by 8.41%, the EBITDA of the company increased by 11.01%, the total assets of the company decreased by -9.87%, and the liability of the company increased by 13.72%.

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Nirma CEO & Key Members Today

• CEO, Chairman, Nirma Limited and Founder President of Nirma Education and Research Foundation- Karsanbhai Patel 
• Managing Director Nirma Limited- Shri Hirenbhai K Patel 
• Chairman of Bhagwati Sphero Cast Limited- Dr PN Bhagwati

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