Published by MBA Skool Team, Last Updated: February 08, 2019
Marketing Strategy of Nirma analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Nirma marketing mix, help the brand succeed in the market.
Nirma marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Nirma Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Nirma marketing strategy can be explained as follows:
Nirma is one of the leading brand in India having several product lines. Nirma’s products are famous for being value for money products which offer a benchmark quality at the best prices. Its marketing mix product portfolio is segmented into 2 parts: consumer products and Industrial products. Nirma’s consumer product segment includes soaps, detergents, edible salts and scouring products. Its Industrial products segment includes acids like sulfuric acid, etc., different types of salts like Vacuum Evaporated Iodized Salt, Pure salt, etc., AOS (Alfa Olefin Sulfonate), LAB ( Linear Alkyl Benzene), Glycerin, Soda Ash, SSP ( Single Super Phosphate) and Sodium Silicate. Nirma for production of its products uses backward integration, a type of vertical integration to save costs and for better efficiency. Washing powder is Nirma’s most successful product with it being the highest selling product all over India in 2004. Nirma has focused on being sustainable with environmentally conscious products which are chemical free like phosphate-ridden washing powders, etc. Its products are available in many different sizes and quantities with the lowest pack available of 70 gm. Nirma’s products are focused on lasting longer to have better sale value. Under its different segments like soap it offers many different varieties like Nirma bath soap, Nima Rose, Lime fresh, etc. for detergents it has the following types – cake, green powder, super washing powder, etc.
Image: company website
Nirma Price/Pricing Strategy:
Below is the pricing strategy in Nirma marketing strategy:
Nirma is one of the most affordable detergent and washing brands in India and mainly serves the lower strata of society.
Its products are seen as of a benchmark quality with the lowest prices. It uses competitive pricing and has its prices at very affordable rates when compared to its competitors. Nirma targets mass consumer market and lower market for example, for a 70 gm soap, the price is only Rs. 10. Nirma’s main point of differentiation has always been its pricing. Before it launched its detergents, they were considered a luxury product with its affordable products it changed the segment altogether. It has a very aggressive pricing strategy with a focus on penetrating the market. The brand's philosophy has always been less margin but high sales volume hence a higher profit with a better outreach as well.
Nirma Place & Distribution Strategy:
Following is the distribution strategy in the Nirma marketing mix:
Nirma has a robust distribution network which shops present all over the country. Its shops are present in both rural and urban areas and has an especially strong pan-India reach. Its factories are located in Gujarat’s Bhavnagar and Baroda. Nirma is headquartered in Ahmedabad in Gujarat. Nirma began its operations with a powerful distribution network in the rural areas which was largely untapped at the time it started. Nirma currently has more than 350 distributors present in various regions across the country. It has an estimated reach of around 25 Lakh houses in India. Nirma has frequently updated its operations recently using its own vehicles for transportation of products to the distributors to cut down on the costs and expenses.
It uses proximity based depots near markets to eliminate the lead times as it did recently in the southern states of Telangana, Andhra Pradesh and Tamil Nadu.
Nirma Promotion & Advertising Strategy:
The promotional and advertising strategy in the Nirma marketing strategy is as follows:
Promotional activities by Nirma have been very aggressive with campaigns in all kinds of media be it traditional channels like TV, print media, radio, etc. or also an online presence with its Facebook handles and Twitter presence as well. Nirma is famous for creating catchy taglines, its tagline ‘Sabki Pasand Nirma, Washing Powder Nirma’ is one of the most popular taglines in the Indian marketing context another popular tagline is ‘Hema, Rekha, Jaya, our Sushma Sabki Pasand Nirma’. It also uses on the ground engagement advertisement with hoardings, posters, bus ads, wall paintings, etc. It uses brand ambassadors to connect with its customers, for instance, its ambassador is Hrithik Roshan. It also has used many TV serial actors in its ads. Hence this completes the Nirma marketing mix.
Nirma started by Karsan Bhai Patel in the year 1969 using door-to-door selling using only his bicycle to travel at the start of the business. Nirma soon became famous for being both very affordable and qualitative. Today Nirma is all over the country with over 14000 employees and a revenue of over Rs.5000 Crore. Nirma consistently served the lower end of the market for many years and recently it moved towards serving the upper end of the market. It mainly operates in the detergent and toilet soap segment.
It also has a university in its name the Nirma University in Ahmedabad. It has been for many years been the face of value for money detergents.
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