Here my story about founder of company, Mr. Karsanbhai, Patel; The incident is a
ID: 388398 • Letter: H
Question
Here my story about founder of company, Mr. Karsanbhai, Patel;
The incident is about a unique method of market penetration adopted by one of the most distinguished entrepreneurs of India. Mr. Karsanbhai Patel, who went on to revolutionize the soap and detergent industry. It was the 1970’s when Indian market for detergents (used for washing clothes) was dominated by multinationals whose products were too dear for most of the Indian population living below or very close to the line of poverty. They used a cheap detergent that were harmful to their health, the environment, and clothes. Karsanbhai saw a massive opportunity in this segment and started manufacturing phosphate-free soap in the backyard of his house. This new detergent was more environmentally friendly and cheaper than the existing MNC products. Karsanbhai ferried the detergent packs on his bicycle and sold them to customers at one-third of the price of the MNC product.
Within few years, the “Nirma” the brand, he named after his daughter, who became a household name in Gujarat state, where he was a native of and started off his business, gaining immense popularity in all sections of the society, giving MNCs run for their money. Today, Nirma is an INR 3500 crore group, and having interest in the field of soaps, detergents, packaged foods, industrial products, fertilizers, and education. Nirma is an inspiring story of an individual who did not have a degree in marketing, nor much resources to take on the MNC giants, but he had a dream backed by hard work, perseverance, and belief in himself. He had a vision that helped him to identify and grab a unique opportunity at the bottom of pyramid that not only fulfilled the need of the poor people, but also proved that innovation does not always start in the plush boardrooms of global organizations, but sometimes even in a small house in a bylane of a hamlet in a developing nation.
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On this behalf in this story below,
I need your help. I am struggling with on how I would say in write for expanding in sales report about his business of selling soap by Karsanbhai Patel that he is from India. His company name is Nirma.
Here the instructions;
First state your thesis (first thoughts and interest in the subject). Then include a section that lets you lay out the facts. Next, write an article that presents your excellent ideas on the points by explaining what they mean, synthesizing them to the best of your ability. Finally, restate in summary the purpose of the paper and what you learned by writing it. This is your chance to pick a side and persuade the reader to see things your way based on what you found out. It would need to write in about between 1000 to 1200 words.
I appreciated your help. Thank you.
Explanation / Answer
Nirma was started in 1969 by Karsanbhai Patel and became one of the most succesful and trusted brand in India. At the time of initial, it was priced per KG about 3.5 rupees, where the competitor's price is about 15 rupees. Most of the lower class people, below middle class and middle class people were bought this product and gets huge success in market. From the time to till date it is holding the segment of customers with them only.
But in recent times, it is facing tough competition with MNEs like HUL, Tide, Triplex, and so on, where all these were producing brands based on customer segment wise. They are launching brands for each customer segment, and it impacted on the sales of Nirma brand.
At present, Nirma is holding about 25% market share in surf segment in the market, and about 15% share in cosmotic and other segmented brands. In 2007, the brand was purchased by one of the US firm, namely Searles Valley Minerals.
Here the factor to be consider is, the producer identify the gap in the society, one are of household segment and he worked on this. Being a scientist, he know something about chemicals and their components, and with his interest he started thinking in a new way. At that point of time, many of the housewifes do not right alternatives to wash their clothes, and only few players were existed in the market. The prices were too high, only rich people can bear it. Hence, he worked on this idea, taken initiation, worked on this, and finally launched a product, which has become one of the trusted brand in India.