Product Lifecycle of Wheel

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