Nirma - Business Outrank

In the 1990s, the jingle that was played almost in every house in India was ‘Sabki Pasand Nirma… Washing Powder Nirma’. Nirma was the brand that was not only affordable but also good, which made it compete with the big brands like Surf. Nonetheless, the brand that was once popular in the detergent market is now almost extinct due to the presence of international brands like Ariel, Tide, and Surf Excel. The story of Nirma can be related to when Karsanbhai Patel, a chemist from Gujarat, began selling homemade detergent at an affordable price in the year 1969. He also named it after his late daughter, Nirupama. At a time when premium detergents were not something that middle-class families could afford, Patel came up with a cost-effective product that would capture the market of consumers. The price of the brand’s products and the money-back guarantee policy contributed to the company’s very healthy growth rate. By the year 1990s Nirma had captured 60 percent of the detergent market in India, thanks to its famous advertising and good distribution network up to the rural areas through Bullock carts. But this dominance of Nirma declined after liberalisation. Other international companies like Procter & Gamble and Hindustan Unilever came in with better and more efficient formulations that were far better than the traditional detergents. People started using products that had better cleaning technologies and Nirma could not match up to them. While the competitors were innovative, Nirma stood still and did not innovate as required by the changing market. A major error was made when Nirma changed the approach in its advertising. The brand which was associated with homemakers, shifted its focus to Hrithik Roshan in its commercials. This change did not seem to resonate with the target market of Nirma, while its competitors including Surf Excel were able to touch the hearts of the consumers through their marketing approaches such as the “Daag Achhe Hain” campaign. Hence, Nirma was unable to generate the required emotional connection with the consumers. In the 2010s, the market share of Nirma stood at 6% which was a decline from 60% that it had in the past. In its attempt to expand into soaps and personal care, the brand could not regain its lost throne. This is because Nirma is a good example of how effective market changes and bad strategies can bring even the biggest player in the industry down.

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