Hindustan Unilever Ltd: The Wheel Saga
MM I Individual Assignment
1. Based on the case study above, critically examine HUL’s Marketing strategy (STP) for Wheel since its inception and the reasons for the success of the brand.
The core reason of the introduction of the “Wheel” brand from the Hindustan Unilever Pvt. Ltd. (HUL) was to damage control the loss of market share due to the short-sightedness and the complacent attitude of the senior level managers to the potential of low income market for branded detergents. Due to the unprecedented success of Nirma brand, HUL did six things right to get back to the low price detergent market. i. Made two committees (C.R.I.S.P & S.T.I.N.G) to come out with a strategy to counter Nirma. Committees are focused & effective bodies to tackle, analyze and give solutions to problems in the fastest and most cost effective way. ii. It finally realized that buyers of Nirma were not only from the low income group, but also from higher income groups, thus acting on it (albeit late) by launching a low priced product -Wheel. Good thing was that, HUL empowered and motivated the employees to go ahead in creating a low cost product too. iii. Had a different management system only for wheel apart from HUL- this was the best strategic decision that HUL took. It enabled freedom for the employees to churn out a competitive product without much interference from other similar systems, directly under HUL leadership. Also, it eliminated unprecedented budget cuts in the middle of the year (which could have happened if it were a part of a parent organization). HUL used the concept of decentralization well. iv. Pricing of the product was different in different areas thus facilitating competitive pricing in the areas where Nirma’s competition was stiff. To ease margins, the same product was sold at a marginally higher rate in areas where competition was less. v. Studied the product weakness of Nirma, i.e....
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