Wheel PLC

Category: Education

Presentation Description

Wheel was created specifically by Hindustan lever to counter Nirma, the low cost detergent, this presentation takes you through the product life cycle of Wheel. Can be downloaded from http://embaitm.blogspot.com/2010/10/wheel-product-life-cycle.html


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Hello friends, please download the presentation from http://embaitm.blogspot.com/2010/10/wheel-product-life-cycle.html

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Presentation Transcript

Product Life Cycle Of Wheel Presented by : Group 2 (Batch 18B SMBA)

Group Members: Venkatesh Richa Jasmeet Ankur Ramya Diptesh

Contents : 

Contents Brief Introduction to Wheel History of Wheel 1987 – 2009 Wheel’s PLC PLC Theory PLC – Charct., Mkt. Obj.,Strat. Limitations of PLC Quiz

HUL's presence in India dates back to the late 1800s (By Lever brothers) 1888 Sunlight soap 1895 Lifebuoy soap 1902 Pears 1905 Lux 1913 Vim

HUL Product Range : 

HUL Product Range SECTORS Detergents Health Care Hair Care Deodr ants Food Oral Care Cosme tics Soap 5

Detergent Range of HUL : 

Detergent Range of HUL

Slide 7: 

World’s largest selling detergent in volume terms Wheel is the largest brand in the Hindustan Lever portfolio. Wheel is the tenth largest FMCG brand in India Wheel is the largest detergent franchise across the fabric wash category in India

Unknown Facts : 

Unknown Facts If Wheel were to be a standalone company it would rank 228 on the ET 500. CEO, HUL Unilever manufactures enough Wheel detergent to wash every garment in India for 45 days.

Slide 9: 

Wheel’s Journey (1987 – 2009)

Nirma Vs HUL (Late 1980’s) : 

Nirma Vs HUL (Late 1980’s) Low cost detergents had grown to 80% of volumes “Surf was Rs 21/kilo and Nirma was Rs 7/kilo. Stung by falling market share, Hindustan Unilever (HUL) reworked the marketing strategies

Nirma Vs HUL - Strategies : 

Nirma Vs HUL - Strategies C.R.I.S.P. — Cost Reduction In Surf Prices S.T.I.N.G. — STRATEGY TO INHIBIT NIRMA’S GROWTH 60% of Nirma users complained of the harshness of the product on hands

1987 : 

1987 Wheel launched in 1987 against Nirma. The term “Wheel” was not strategic, rather it was a matter of compulsion. HUL wanted Wheel to be a standalone business of its own to dominate the low price segment.

Door – to – Door : 

Door – to – Door Colorful Flyers Posters Street performances Jingles Travelling Cinema Video Van Adds Magicians Singers & Dancers

Slide 14: 

“Maine maangi thi safaai, aur tu ne di haathon ki jalan”

1988 - 1990 : 

1988 - 1990 Wheel’s Marketing Strategies:

1991 - 1994 : 

1991 - 1994 Un organized Market Competition with Local Player Establishing Rural Distribution Center Grew strong customer base in Maharashtra and MP

1995 - 1997 : 

1995 - 1997 1994 34,000 distribution outlet opened in 34,000 villages 12.56% in volume in India 25% of HUL’s total sales in volume

1995- 1997 : 

1995- 1997 Established sales channels through thousands of small storefronts Subsequently achieved better return than higher-end cleaning products. Strong hold at Karnataka, Bihar, MP, Maharashtra, Part of Gujarat

1995- 1997 : 

1995- 1997 Subsequently achieved better return than higher-end cleaning products. Strong hold at Karnataka, Bihar, MP, Maharashtra, Part of Gujarat

1998 - 2000 : 

1998 - 2000 Project Streamline Challenges: Infrastructures , Distribution network 37% of HUL’s total market in volume

2001 `Power' brand strategy : 

2001 `Power' brand strategy HUL’s net sales growth rate fell (4.1% -2.4%) Re-launched ‘Best clean with less effort'

2002- 2003 : 

2002- 2003 Ranked at number 21 Largest brand in HLL. Third consecutive year of strong growth Strengthened its position as the market leader in the category.

2004 : 

2004 Wheel Active, has been introduced to upgrade consumers to a higher order product.

2005 - 2007 : 

2005 - 2007 Ranked 45 Turnover exceeding 8 lakh tones . Wheel continued to grow strongly Smart Shrimati

2008 : 

2008 Achieved sales value over 2000 cr

2009 : 

2009 MRP of Wheel Active Powder brought down from Rs 75 to Rs 67 on a 2 kg pack. Rs 10 pack of Wheel Active has been raised to 275 gm from 250 gm. 275 gm and 560 gm Wheel Green detergent powder to 300 gm and 600 gm

Fighting the competitors : 

Fighting the competitors

Applying Wheel As A Product To Product Life Cycle : 

Applying Wheel As A Product To Product Life Cycle

PLC Curve For Wheel : 

PLC Curve For Wheel Years Sales % In Vol. Introduction Growth

Theory Behind Product Life Cycle : 

Theory Behind Product Life Cycle

Product Life Cycles Introduction Growth Maturity Maximize distribution Build awareness & obtain trial Decline Extend distribution Advertise & promote heavily Advertise product image Persuade customers to switch Milk the product for profits Determine if to terminate product Postmortem Plan for postmortem expenses Develop phase-out plan 31

1991 1995 1996 1997

Introduction Growth Maturity Decline PLC Management Faster Longer Higher

Alternative Product Life Cycles

1. Increase frequency of use by present customers 2. Add new users 3. Find new uses 4. Change product quality or packaging Extending the Product Life Cycle Market Modification Product Modification

Sales Time Effects of Extension Strategies

PLC Characteristics : 

PLC Characteristics

PLC Marketing Objectives : 

PLC Marketing Objectives

PLC Strategies : 

PLC Strategies

PLC Cash Flow Summary : 

PLC Cash Flow Summary Intro- duction Growth Maturity Decline Net Income Investment Intro- duction Growth Maturity Decline Intro- duction Maturity Decline Growth Cash Flow from Operations and Investments

Limitations : 

Limitations Few products follow such a prescriptive cycle. The length of each stage varies enormously. The decisions of marketers can change the stage Not all products go through each stage. It is not easy to tell which stage the product is in. Remember that PLC is like all other tools. Use it to inform your gut feeling.

Quiz : 

Quiz Place the following Products in its PLC: LED Bulbs Laptops Refrigerator Black & White TV


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