The Nirma Story

ICMR regularly updates the list of free cases. To view more free cases, please visit our site at frequent intervals.

<< Previous

Brand Wars - Yes Nirma also had innovative marketing strategies. In the mid-nineties, Nirma successfully extended its brand to other product categories like premium detergents (Nirma Super Washing Powder and Detergent Cake), premium toilet soaps (Nirma Premium, Nima Sandal, Nirma Lime Fresh). It followed its original marketing and pricing strategies in the economy segment as well as in the premium segment. In 2000, the company entered the hair care market with Nirma Shikakai, Nirma Beauty Shampoo, and Nirma Toothpaste. Unlike detergents, soaps were a personal-care product. Many customers had deep psychological bonds with their soap brands. Moreover, the market was segmented by HLL by price, by scent appeal, and by brand personality. So, Nirma positioned Nirma Bath against Lifebuoy5, Nirma Beauty Soap against Lux6, Nima Rose against Breeze7, and Nima Lime against Jai Lime8. Explaining how Nirma hoped to win this game, playing by HLL's rules, Hiren said, "World-wide, there are only four or five platforms - floral, beauty, health, freshness - which account for most of the soaps sold." Nirma produced high-fatty-matter9 soaps with the right scents, and priced them much lower than other brands.

This created the 'sub-premium' segment. Nirma also mastered the game of managing the geographical diversity of consumer preferences. For instance, the North preferred pinks soaps and while the South preferred green ones. Sandal soaps were more popular in the South. Initially, the advertising spend of the company was very low, as compared to other FMCG companies. Nirma spent only 1.25-2% of its turnover on advertising as compared to the normal 6-10%. For endorsing soaps, the company used starlets like Sangeeta Bijlani, Sonali Bendre, and Riya Sen, who were relatively unknown at that time. The advertisement messages were also very simple and focused on the benefit of the product. Nirma always preferred to place the product on the shelves first, receive feedback, and then create an enduring ad campaign. While introducing toilet soaps and detergents in the premium segment, Nirma relied on its time-tested weapon - Price. The company planned to concentrate on volumes in these segments as well. But there was a change in the margins given to retailers. Unlike the economy products, where the cost benefits were passed on to the consumers, Nirma passed on this benefit to the retailers. It gave them huge margins. For instance, for Nirma premium soap, it offered 52% and for Nirma shampoo, it offered an unbelievable margin of 140%.

Next >>

---

5] Popular brand of carbolic soap from HLL
6] Popular brand of beauty soap from HLL.
7] HLL's brand in the floral soaps category.
8] HLL's lime brand. The premium product in this category was Liril, which was countered by Nirma Lime Fresh
9] High-fatty-matter soaps are high in lather quality

---