Management lessons one can learn from Nirma washing powder

Karsanbhai Patel was a science graduate who stumbled upon the formula to make a detergent and there was no stopping him after that. He chose to name the brand after his deceased daughter and sold it at 1/3rd of the market price. The great quality and the cheap prices soon attracted customers which rose him to the position of becoming one of the greatest entrepreneurs in the country in spite of not having a management background.

Here are a few lessons every entrepreneur can learn from Karsanbhai Patel’s journey:

1. Research and development is a must

Karsanbhai Patel was a man of limited means who loved to experiment with chemicals. This love led him to strike the perfect formula for detergent which at that time was being sold only by MNCs in the country. He invested time and hard work into his research which is why he could start his low-priced detergents.

2. No task is too small

Karsanbhai Patel, in his initial days was the only driving force behind selling the detergent. He went from door to door selling his product which helped him and his product gain popularity and build relationships. This shows that no task is big or small and an entrepreneur must be ready to do what it takes to make his business a successful one.

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3. Reasonable prices and good quality

Nirma struck a chord with all the customers as people were drawn to the cheaper prices and the great quality. By paying 1/3rd for detergent, they got a product which was at par with Surf. This helped Nirma gain a strong customer base in the initial days.

4. Construct a brand

Nirma started out at a small scale detergent bar which found space only in kirana shops in Ahmedabad. However, to increase its popularity, Karsanbhai Patel, decided to launch a TVC with a very catchy tune and a brand mascot which helped in the customers’ recognising the brand every time they went shopping. The famous TVC was responsible for giving the simple detergent the status of becoming a “brand”.

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5. Never stop expanding

Even though Nirma started out as a low-cost detergent, it soon started offering products to the upper income groups as well like Nirma Sandal soap and Nirma Beauty soap. Karsanbhai Patel also started a university called Nirma University in year 2003 to diversify his brand portfolio. Expansion is the only way you can actually sustain your brand is one lesson Karsanbhai Patel teaches us well through his journey.

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Author: OOS Team

Explaining bits and bytes of startups and entrepreneurship.

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