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PRODUCT LIFECYCLE OF WHEEL
PRESENTED BYHITESH KUMBLE
CHANDRAKANT MOURACHIRAG PALANDE
NIRAV SHAHBHAVIK MEHTA
CONTENTS
• BRIEF INTRODUCTION OF WHEEL• HISTORY OF WHEEL -1987 -2009• WHEELS PLC• PLC THEORY• PLC CHART,CHARCT,MKT,OBJ,STR• LIMITATIONS OF PLC
DETERGENT RANGE OF HUL
PRODUCT CATEGORY BRAND TARGET MARKET
MASS WHEEL BOP CONSUMER
PREMIUM SURF EXEL HIGH INCOME GROUP/MIDDLE CLASS
POPULAR SURF,RIN,SUNLIGHT MIDDLE CLASS
WHEEL
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
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.
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
WHEEL JOURNEY1987 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.
Marketing of wheel
Door – to – Door Colorful Flyers
Posters Street performances
Jingles Travelling Cinema Video Van Adds
Magicians Singers
“Maine maangi thi safaai, aur tu ne di haathon ki jalan”
1991 - 1994 Un organized Market Competition with Local Player Establishing Rural Distribution
Center Grew strong customer base in Maharashtra and MP
1995-1997
34,000 distribution outlet opened in 34,000
villages 12.56% in volume in India 25% of HUL’s total sales in volume
1995-97
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
1998-2001
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'
2002-2003Ranked at number 21
Largest brand in HLL.
Third consecutive year of strong growth
Strengthened its position as the market leader in the category.
2004-2007
2004 Wheel Active, has been introduced to upgrade consumers to a higher order product.
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
PLC Curve
INTRODUCTION GROWTH MATURITY DECLINE
CHARACTERISTICS
SALES LOW SALES RAPIDLYRISING PEAK DECLINING
COSTS HIGH/CUST AVERAGE LOW LOW
PROFITS NEGETIVE RISING HIGH DECLINING
CUSTOMERS INNOVATORS EARLY ADOPTERS MIDDLEMAJORITY LAGGARDS
Comeptitors FEW GROWING NUMBERS STABLE NUMBERS DECLINING
• 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.
• THANK YOU
: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:
Unknown Facts :
Slide 9:
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 :
Door – to – Door :
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 :
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 :
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