: Product Life Cycle Of Wheel
Presented by :
Group 2 (Batch 18B SMBA) : Group Members:
Diptesh Contents : Contents Brief Introduction to Wheel
History of Wheel 1987 – 2009
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
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
Video Van Adds
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:
Black & White TV : THANK YOU