Nirmacasestudy 161019145503
Nirmacasestudy 161019145503
Nirmacasestudy 161019145503
STRATEGIES BY NIRMA
Nirma started there market with price- led marketing strategy. They
started with price of Rs. 3/kg, when the available cheapest brand in
the market was Rs. 13/kg. Mr.Patel bet India masses will buy if its
affordable. They firstly focus on rural area. This describe the LAW OF
DEMAND ie. when the price of the product decrease , demand for
that product increase.
Every pack of nirma came with money back gurantee.
Cost reduction strategy of nirma helps them to entre in market
withes. 3/kg. Nirma powder did not contain any ingredient to
improve the whiteness of fabric. it does not contain ant perfuming
agent or active agent in ingredients this is the reason they able to
keep the price low. Nirma relied on low cost technology, process and
raw material.
Availability of nirma washing powder in different pack sizesie. 30gms,
200gms,500gmsand 1kg for different segment of population.
Nirmaexpand its portfolio by including fabric care product, personal
product.
LONG R.
UN: In long run more firms may enter into the market, there may be many
producers and many consumers in the long run and no business has total control
over the market price. There will also be break even situation in the long run Ie;
neither profit nor loss, the firm will make zero economic profit.
SHORTRUN: In short run the competitive firm reduces a differentiated product the
demand curve it faces will be negatively sloped since there are many close
substitute for the product the demand curve is highly price elastic. The price
elasticity of demand is higher the smaller is the degree of product differentiation
POSERS:
High price led strategy of HLL before nirma entered into the market.
Product differentiation
More elastic
Economies of scale
Selling cost
From the above table we can conclude that there was graduvallydecrese in the
profit ofnirmabecayse in long run there may be entry of new firms with the same
strategy which leads to increase in its sudstitues and also the income of the people
May rise and they may shift to luxury goods, so we cannot visualize long run
sustenance.
Yes, the success of nirma can be extended to other products. The some of the
products of nirma which got success are