Section 37
How Nirma beat Surf on price
Can a one-man brand beat a multinational by serving the buyers it ignores?
- case
- Success
- years
- 1969-1988
- About ₹3.50 (Surf: about ₹13)
- Nirma price per kg at launch · 1969
- About 60%
- Market share (reported) · c. 1988
- Over 1.72 lakh tonnes
- Volume sold (reported) · c. 1988
- 01
The situation
In the late 1960s, washing powder was a premium product. Hindustan Lever's Surf sold at about Rs 13 a kilo, which most low-income households could not afford.
- 02
The decision
Karsanbhai Patel began making a simple yellow detergent powder and selling it door to door from his bicycle in plain polythene bags, starting in 1969. He priced it at about Rs 3.50 a kilo. Through its best years Nirma sold for about Rs 14 less than Surf on average. Later the brand used the 'Nirma girl' mascot and jingle to build recall.
- 03
The outcome
By 1985 Nirma had overtaken Surf at the top of the detergent market. Around 1988 it was reported to hold about 60 per cent of the market, selling over 1.72 lakh tonnes. Hindustan Lever answered with a programme it called Operation STING, which led to the launch of its low-priced Wheel brand in 1988.