CASE STUDY

SUMMARY

The case revolves around two companies i.e NIRMA and WHEEL (An HUL

product). HUL SURF a high class branded detergent had the monopoly in till the

year 1987, unless a huge setback came to the company when from nowhere a

LOW COST detergent NIRMA came into existence. It mainly focussed the lower

income group which made it a regional brand and soon the popularity of SURF

started coming down. But to combat this loss HUL launched the fighter brand

Wheel which slowly grabbed the market and became equivalent to NIRMA. This

case is considered to be a classic case as it covers the strategy and main idea by

which the two detergent companies competed with each other. After all it’s the

IDEA WHICH IS SOLD IN THE MARKET.

1. One possible solution

STP – Segmenation , Target and Positioning

Segmentation: segmentation is dividing customer Segments into

different divisons and then focussing on it.

The product WHEEL was an INNOVATION in itself as it was the first

LOW COST HUL product.

the management understood the importance of Bottom of pyramid

and thus considered the lower income group.

They carefully examined Nirma and then designed the product

WHEEL.

Wheel was the fighter brand against Nirma to combat its success

and since a branded product was coming in low price so customer

got attracted towards it.

Positioning :

Positioning is an essential component -- and skill - in good

marketing. It is how use present your product in the market so

that it creates a good impact in the minds of the customers.

Earlier in comparison with the advertisment of housewives in

white saari of Surf , Nirma came out advertiment o with young

people singing, dancing and leaping to a catchy jingle. And thus Positioned itself as

MODERN DETERGENT.

Wheel was also launched earlier in the year 1987 but since it was

not able to position itself properly , it failed.

Lat Levers came up with the classic ‘Dekho Dekho Dekho’ jingle,

a riot of colours and wild choreography.

With the research picked up on Nirma and found high ash content

in the powder which was not the kind on hands again Wheel came

with the Tagline “Maine maangi thi safaai, aur tu ne di haathon ki

jalan” which satraight away targtted Nirma.

Target: This is the real goal/objective in market that marketer want to

reach. As understood from the earlier points the Target customer for

wheel was the lower income group.

Maslow’s theory angle : if we look at the case from Maslows

theory then it says that human’s one level need should be

satisfied first then only it moves to the next level. And here the

main need of the customer was a low cost detergent.

For the first time company used the third party manufacturer

and WHEEL opted for Dynamic pricing.

A proper SWOT Analysis was done by the company in order to

make wheel a successful brand.

Wheel also came up with varieties Blue Wheel, Wheel for

coloured clothes and Wheel Active Gold (which looks like P&Gs

Tide Detergent) launched in 2008.

Today with the efforts of HUL wheel holds around 11% share in

the market followed by Nirma with 10% share.

2. One Possible Solution

Will the present value proposition, positioning and marketing strategy for Wheel hold good for the

next 5 years? If not, suggest changes you would initiate.

As a marketing head of wheel I will first have a look on the history of the

Product Wheel.

As wheel was a resultant of innovation it has already created a good

impact in the mind of the customer.

To make wheel a successful brand for next 5 years I will have to find the

current customer’s demand and the trend of the market.

WHEEL as alredy overcome NIRMA and came up with Varieties such as

BLUE WHEEL , WHEEL for color clothes and wheel active gold.

Value Preposition

A value proposition is a promise of value to be delivered and a belief

from the customer of value that will be experienced.

With the help of Brand value and quality factors customers are already

preferring wheel. So in order increse the demand of my product I will do

the following things :

A. Bring more innovation to the product by increasing the cleaning

capacity of the detergent.

B. Include more varities in wheel for example : many people

nowadays use washing machines for washing clothes. So product

will be designed in such a way that it is gives better in washing

machines.

C. The brand should be able to wash difficult satins also like of caused

with oil , grease , turmeric and tea or coffee stains.

D. One more category which I will like to introduce is the WOOLEN

CLOTHES category and also promise that the quality of clothes

wont get affected and it will not syringes after wash.

E. The oxygen wash has also came into existence in which the clothes

will look like a new one. So I wiil also try to put in my detergent .

All the above features in comparatively reasonable price as

compared to other product in market.

Positioning

The product will be placed according to the current needs of

the customer.

Today people believe more in time-saving and quick result.

So product will be positioned in such a way that thet it gives

a quick wash.

Like cloth will be fully washed at one go.One don’t have to

wash the collar of the shirt separately while washing.

The detergent is powerful. Impact of good clothes on people

and how there personality get changed.

The color of the cloth wont fade after the wash etc..

The advertisement will be created in such a way that it

connects with common people. As wheel is a common man

detergent.

Marketing strategy

Marketing isn't just about creating awareness...

...it's also about creating loyalty. By creating a consistent presence in the mind of target users, businesses also create a sense of permanence and thus encourage users to become loyal to a brand.

There are three types of marketin strategy :

A. Offline (or traditional form of) marketing - offline marketing include billboards, posters, newspapers and mailers. Also common are the more direct methods of press releases and conferences, and seminars. Product samples and demos are yet another way to promote a brand.examples of offline marketing include billboards, posters, newspapers and mailers. Also common are the more direct methods of press releases and conferences, and seminars. Product samples and demos are yet another way to promote a brand.

B. Online marketing (with the arrival and development of the internet) - Imagine wanting to broadcast an advertisement globally on TV for a new product - how much would that cost you?With the Internet, you can accomplish that same goal at a relatively low cost.Still, much of what is done online in terms of marketing and sales mimics the offline world of marketing. Online, however, you have the ability to target your audience more finely - and more quickly.

C. Word of mouth marketing ( which is the oldest and arguably the most effective still today) - By far the most powerful form of marketing is and will always be word of mouth. People trust their friends and family and other users more than they trust banners or ads. The power of word of mouth should not be underestimated.

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