With Nima, Nirma Shifts From Umbrella Branding

Breaking away from tradition, the Karsanbhai Patel-promoted Nirma has introduced a new soap brand, Nima Lime, in the key markets of Gujarat and Maharashtra.

The launch is significant because it is the first time since the company's inception 15 years ago, that the Rs 1,350-crore detergents and soaps major has chosen to move away from its umbrella branding strategy by adopting a new brand name.

With a wrapper price of Rs 6.50 and a total fatty matter (TFM) content of 70 per cent, Nima Fresh is aimed at the popular segment of the over Rs 2,000-crore toilet soaps market.

Since the early nineties, Nirma has been challenging the hegemony of Hindustan Lever, which holds over 64 per cent share of the toilet soaps market. Nirma has so far managed to snatch 16 per cent share of market.

 

Company officials maintain the launch was precipitated by the aggressive activity unleashed by Hindustan Lever. HLL had relaunched Jai Lime to stymie the growth of Nirma Lime Fresh, which according to industry figures sold over 17 million packs in the very first month since its launch last year.

Explaining the launch, Kalpesh Patel, Karsanbhai's son-in-law and executive director, Nirma, said, "It is a hedge against the mirror or pseudo brands launched by the competition, which drew the consumer's attention away from our core brand, i.e., Nirma Lime Fresh. So Nima is essentially a fence brand which will shield Nirma Lime Fresh form competitive attacks."

The brand, according to Patel, is targeted at consumers unable to afford a higher priced soap.

Market sources affirm that retailers are hawking the brand at about 75 paise to a rupee less than the wrapper price. Says Patel, "Pricing is the dealer's prerogative. As all the company's products are have high volumes, the dealer has freedom to sacrifice his margin. The same is the case with Nima."

While the new brand is currently available in key markets in the west, the company may consider taking the brand national. Says Patel, "Right now, things are just beginning to settle down. In fact, it might be a national distribution network, if the trends so dictate."

Nirma is yet to support the fledgling brand with any above-the-line advertising. Though the company is unwilling to discuss the advertising plans for the new brand, sources suggest that for the time being, Nima Lime will continue to be sold through dealer push.

This is Nirma's fourth brand launch in the toilet soaps market. It marked its foray in the early nineties by launching Nirma beauty soap to take on Lever's best selling brand, Lux. Nirma followed it up with Nirma Premium, Nirma Lime Fresh last year.