Differentiation strategy for Nirma

Nirma is one of the few names - which is instantly recognized as a true Indian brand,

which took on mighty multinationals and rewrote the marketing rules to win the heart

of the consumer. India being one of the largest consumer economy, with up-and-

coming middle class, a widespread, diverse marketplace, Nirma aptly concentrated all

its efforts towards creating and building a strong consumer preference towards its

‘value-for-money’ products.Nirma’s vision was to make consumer products available

to masses at an affordable price. Distinct market vision, infrastructure, good

distribution network, umbrella branding and low profile media promotions allowed it

to offer quality products, at affordable prices.

Nirma has been a huge success story. It has a good hold into the FMCG market but

has been recently crowded out by HLL and other major players.In this following

part,I would be formulating a strategy for Nirma to stay afloat in the Fmcg market

Products

• Nirma Bath Soap

• Nirma Beauty Soap

• Nirma Lime Fresh Soap

• Nima Rose

• Nima Sandal

• Nirma Washing Powder

• Nirma Detergent Cake

• Super Nirma Washing Powder

• Super Nirma Detergent Cake

• Nirma Popular Detergent Powder

• Nirma Popular Detergent Cake

• Nirma Shudh Iodized Salt

• Nirma Clean Dish Wash Bar

• Nima Bartan Bar

NIRMA - SWOT ANALYSIS

Strengths:

Strong Brand equity:

Nirma is a Rs. 17 billion-umbrella brand offering consumers a broad portfolio of

products at multiple price points in the Detergents, Soaps & Personal Care

market. Produces a range of industr ial chemical products.

Market leadership in detergents and fabric wash and second largest player in

toilet soaps.

Wide distribution network.

Consumers have stayed loyal to the brand

Weakness:

Less presence in premium segment.

Lacks global tie-ups and thus finding it hard to tap export markets.

Perceived Brand weakness by premium consumers

Negative campaigning by competitors as a cheap “yellow powder”

Strong and well differentiated brands like HLL occupying the market

Low technological prowess when compared with the major market players

Opportunities:

There’s a great awareness and attractiveness towards herbal products. Nirma can tap

this potentially vast market.

Exports

Acquisitions for strengthening its distribution tie-ups.

Entry into other categories like shampoos, toothpastes and fabric whiteners.

Threats:

MNCs coming, to India part icularly in Toilet and Soap industry.

Emergence of small but strong regional players lie Cavin Care.

The rural market is getting empowered and has more disposable income.They like

to be associated with more Internationally known brands.This can severely cripple

Nirma in the near future

Heavy onslaught of competition in the core categories from players like

Hll,ITC will result in higher advertising expenditure.

Counterfeit products in rural areas and small towns.

Reduction in real income of consumers due to high inflation

TOWS MATRIX

STRENGTH(S) WEAKNESS(W) OPPORTUNITY(O) THREAT(T)

SO STRATEGIE

WO STRATEGIES

ST STRATEGIES

WT STRATEGIES

SO STRATEGIES

Nirma’s customers have stayed loyal to the brand.Nirma has to set up a

technologically superior plant which manufactures premium brand products and cater

to the premium segement/growing middle class market.Introduce new products with

the Herbal touch as in the lines of Dabur.It’s a huge market that Nirma is missing

out.Export its products wherein the vast diaspora of Indians presents a huge market.

Have tieups with FMCG majors and introduce new products.The tieup can certainly

boost Nirmas brand image

WO STRATEGIES

Nirma has to boost its presence in the premium FMCG segment like

shampoos,toothpaste etc by introducing premium products.Thiss can either with a

tieup with MNC or introduce its own premium,high priced products.In this way it can

challenge HLL & ITC.The perceived brand weakness due to the negative smearing by

competitiors can be tackled by introducing premium brand products and by roping in

Brand ambassadors who appeal across all segments of the society.Positive

Advertisements in order to tackle the perceived cheap brand weakness

ST STRATEGIES

Nirma is the market leader in detergents and the second largest player in toilet soap

market.It can effectively cut off the MNC trying to enter the market by offering

premium beauty soaps,introduce new products like toothpastes,shampoo.Using its

wide distribution network it can make sure that the products are always “consumer

ready”.Capitalize on the fast growing FMCG market and introduce more products to

the middle class consumer who are moving into an upward trend towards more

branded products

WT STRATEGIES

A tieup with a Internationally known brand would definitely boost its image and

augur well to remove its low brand image amond the premium market.Introduce new

line of packaging and designing which would appeal to the mass market.Tieups to

export its products will definitely create new oppurtinities to expand while allowing it

to apply the learnt lesson to the Indian market.Introduce latest state of art technology

along with new product lines to take the majors like HLL,ITc at their own turf

STRATEGY:

Nirma’s strength has always been value for money. It has successfully managed to

defeat many MNC with this policy and at this turf.But the other companies have

quickly learnt from their mistakes and have differentiated their products to compete

with Nirma.Unfortunately Nirma has not been able to move upstream with their

products to the premium segments.To sum up,to stay competitive and stay as a major

player in the Fmcg market ,Nirma has to do the following as evident from the Tows

and Swot matrix.

Improve Brand image

i. By offering premium products

ii. Using Mass media to counter smearing campaigns by competitors

iii. Tieup with foreign Majors

Update production technology

Manufacture premium brand products and cater to the premium segment/growing

middle class market.

Introduce new products with the Herbal Ingredients

Export products wherein the vast diaspora of Indians presents a huge market.

Introduce new products like shampoos,toothpaste ,deodorants etc

New style of Packaging and presenting of products

Conclusion:

Nirma as a brand has been able to etch a niche for itself in the face of intense MNC

competition. It has not only emerged victorious in its core competency, detergents, but

has also successfully moved on into newer products. Nirma has two options to go

ahead first to concentrate only on bottom of pyramid and develop a huge

distribution network to reach to every corner of the country and other is to cater

to needs of growing middle class, which is a primary target customer of all the

companies. I believe if the above strategy is followed Nirma will be a strong

player in the Fmcg market for years to come.