Report On Advertisement and Promotional Strategies
Introduction
The journey of Nirma began in 1969, when Karsanbhai Patel ventured into making phosphate-free detergent powder. This product was named Nirma, after Mr. Patel’s daughter Nirupama. The Nirma brand now holds a value of Rs. 4,840 crore and offers a range of consumer products like cosmetics, soaps, detergents, salt, and soda ash.
The Nirma brand has become synonymous with affordable detergents and toilet soaps, expanding its distribution area beyond Gujrat. Previously packaged in plastic bags and distributed within a 15-kilometer radius, the detergent was priced at Rs. 3/- per kilogram, competing directly with multinational brands costing Rs. 13/- per kilogram. In less than ten years, Nirma became India’s leading detergent brand and by 1999 had captured over 38% market share as the country’s largest detergent manufacturer.
Nirma’s marketing strategy focuses on meeting consumer desires for product, convenience, and price. This approach has enabled them to automate the sales process. Successful advertising has been instrumental in Nirma’s success. At first, their packaging depicted a woman washing clothes, but it was later changed to feature the founder’s daughter. The famous image of the white dancing girl in Nirma’s TV commercials has become synonymous with the brand.
Nirma has a simple and catchy jingle that has remained socially accepted and has resonated in middle-class Indian homes for years. The jingle not only emphasizes the product but also pays homage to the wise and budget-conscious Indian housewife. First aired on radio in 1975, the jingle made its television debut in 1982. Nirma’s promotion strategy prioritizes launching a product before advertising it. Their advertisements consistently highlight the value for money aspect.
The aforementioned strategy implemented by Nirma also led to a decrease in advertising costs. Additionally, the brand adopted inventive promotions including distributing freebies and coupons within its Nirma washing powder packages. As a result, Nirma disrupted the market and emerged as a leading player in the washing powder category. Nirma’s advertising approach in the detergent industry has differed from its competitors by avoiding demonstration advertisements and comparisons between products. Instead, they prioritize showcasing their own product.
Nirma has chosen to steer clear of demonstration advertisements and instead focus on creating communication centered around aspirations for all individuals. In comparison to the industry average spend of 6-10%, Nirma has allocated only 1.25% of its turnover to advertising. To alter its perception as a low-end brand, Nirma invested a staggering 10 billion rupees in corporate advertisements across India during the late 1990s. In 2009, Nirma had a change of heart and decided to undergo a complete transformation at an enormous cost of 1.5 crore rupees. The primary objective of Nirma’s advertisements is to establish a strong recollection of the brand by utilizing the popular jingle over an extended duration.
Advertisement Agency
Past Agency: Purnima Advertising Agency
Current Agency: Purnima Advertising Agency & TapRoot India
Purnima Advertising Agency has been the long-time agency responsible for handling brand Nirma’s creative and media mandate for the past 30 years. They have consistently focused on providing value-for-money in their approach.
Segmentation, Targeting and Positioning by Nirma
SEGMENTATION
Income: Nirma washing powder was initially launched as an affordable detergent targeting primarily the middle-income segment.
Social Class: The preference for Nirma detergent also helps maintain one’s social class.
The company segments the market based on some other minor factors. Nirma aims to tap into a large market and adopts Mass Marketing by providing customers with value products that have the best quality at an affordable price. The company’s objective is to convert non-users of detergents, especially those from rural markets, into users. In terms of positioning, Nirma places itself between expensive detergents and low-quality washing soap slabs. It positions itself as a cost-effective yet powerful stain remover. The product is effective in cleaning white clothes and enhancing their brightness.
Nirma has long been present in the market and has a wide customer base across the country. They positioned their detergent as a value for money product. Despite not conducting any research, both Nirma and the advertisement agency have been successful. However, Nirma is currently at a crossroad and must reinvent itself due to the evolving market. In order to stay competitive, Nirma needs to innovate their products and update their marketing mix. Additionally, Nirma must consistently refresh their communication strategies.
To regain its previous success and become a market leader once again, Nirma needs to emphasize its affordability while also conveying to consumers that it offers the best value for money. Eye-catching advertisements are necessary for this purpose, as Nirma has already made an impact in the minds of consumers. Taking bold and innovative measures is essential for Nirma to reclaim its position in the market.
Links Used
- www. nirma. co. in http://toostep. com/insight/marketing-strategy-by-nirma-competitor-ko-dho-dala-must-read
- http://www. thehindubusinessline. com/todays-paper/tp-brandline/article1010698. ece
