Nirma SWOT analysis – SWOT analysis of Nirma

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Nirma SWOT analysis – SWOT analysis of Nirma: Nirma Detergent is an extremely highly successful company of wash powder that is extremely well-known in India. The product was launched in 1969 in India and changed the definition that washing detergent had in the Indian market. Before Nirma was introduced to the market, the market for detergents was dominated by products made by multinational corporations and the perception was that detergents were only used by those with wealthy classes.

It was during this point that Karsanbhai Patel started producing and selling Nirma a detergent that was priced in the economic segment and was affordable by all. Nirma was a huge hit success and gradually became one of the most popular brands in its industry. Presently, Nirma is available in cake and powder forms and other variations include Nirma Popular and Super Nirma.

Nirma fun facts: Nirma is not only India’s largest selling brand in detergent segment but is also the second largest manufacturer of toilet soap in the country.

About Nirma – SWOT analysis of Nirma

SWOT analysis of Nirma

Company: Nirma Limited

CEO: Dr Karsanbhai K Patel

Founder: Dr Karsanbhai K Patel

Year founded: 1969

Headquarters: Ahmedabad

Annual Revenue: INR 8366 crore

Profit | Net income: INR 779 crore

Number of employees: 1247

Products & Services: Nuvoco cements | Zero M Wall Putty | Nirma detergent | Nirma soaps

Website: www.nirma.co.in

Nirma Competitors

Competitors: Brinsa | Green Cross | GHCL | DAP Products | Active Wheel | Sunlight | Ujala | Rin | Ghadi Detergent | Pears Soap

SWOT analysis of NirmaNirma SWOT analysis

SWOT Analysis Of Nirma is brand-based. SWOT Analysis of Nirma evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Nirma’s SWOT Analysis. Below is the detailed SWOT Analysis of Nirma.

Let’s talk about Nirma’s SWOT assessment.

Strengths of NirmaNirma SWOT analysis

SWOT analysis of Nirma

  • Advantage of First Mover: Prior to Nirma Washing Powder, Indian customers were of the belief that the majority of them couldn’t afford detergents. But, Nirma changed this perception and took total control over the segment of the economy before every other company could even make it into that market.
  • Undisputed market dominance: Nirma was the market leader for a number of years in its market. The company held a market share of nearly 30 percent in the market for detergents for more than 10 years. Recently, it was placed in the second spot through Active Wheel, but it remains with a market share of around 27 percent.
  • Prices: Nirma introduced the washing powder with a price of 3 Rs per kg at a time when the detergent with the lowest price offered was the Surf at 13.50 Rs per kg. While it was true that the detergent was priced low and of low quality, the powder was of high quality. The perception of a top-quality product with a reasonable cost was the reason that was what made Nirma the market’s biggest success.
  • Market Permeation: Nirma Washing Powder has a wide penetration into the Indian market. The product is sold through more than 2 million retail outlets via 400 distributors. Manufacturing facilities are located in approximately 6 locations in India and the price of shipping was reduced to a minimum because they controlled their own distribution channels.
  • Captive Production: In order to control the costs, Nirma decided to do backward integration and started owning and operating captive production plants for their raw materials. Two of these units were set to be set up at Bhavnagar as well as Baroda and this led to a significant reduction in costs for products.
  • Penetration into the market in the rural areas: The rural market in India comprises around 70 million households, which is a massive market. Nirma Washing Powder which began in the village market was an enormous hit in rural marketplaces in India and remains so to this day.

Weaknesses of NirmaSWOT Analysis Of Nirma

  • Perception of being cheap: Though Nirma washing powder was a hit due to the “sasta” image, however, over time the brand hasn’t been able of getting out of the image. The public remains to believe that it is an inexpensive and, consequently, inferior product.
  • The failure of changing the position: Nirma made an attempt to be in the premium market by placing itself in opposition to the likes of HUL. In order to do this, it launched a series of ads with Hrithik Roshan. This is the first occasion that it employed an actor as a celebrity brand spokesperson. But, the brand was unable to reinvent itself after it began losing market share to brands such as Sunlight or Active Wheel.
  • Incapable of keeping with the market’s dynamic: The detergent market is rapidly changing and it has seen its growth slow to about 2 percent as the level of penetration for each brand has reached its maximum. To compete companies have no option but to convince customers to spend more on their current offerings by improving the quality of their offerings. Nirma however hasn’t been successful in this regard.

Opportunities of Nirma – Nirma SWOT analysis

SWOT analysis of Nirma

  • Diversity: The village-to-city migration rate has been increasing, which means that marketers are looking at niches to help businesses. The detergent industry has seen a rise in demand. are trying to pinpoint particular requirements such as washing machines stain removal. bleaching and fragrance smoothening etc. and then making products that meet each of these requirements. This has given detergent manufacturers more opportunities to diversify their offerings.

Threats of Nirma – SWOT analysis of Nirma

  • Competition: The main competitor of Nirma are Active Wheel, Sunlight, Ujala, Rin, and Ghani Detergent.

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