HINDUSTAN UNILEVER LTD:
THE WHEEL SAGA
MM I INDIVIDUAL ASSIGNMENT
Q1. 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.
Answer: In 1987, HUL launched its very famous product Wheel detergent. The Strategies followed by HUL to reach a point of success with the brand were: A. Innovative Segmenting Strategies :
Rural markets present a great opportunity to a company as well as impose major challenges, yet i) HUL experimented with innovative methods to reach the rural market. ii) Utilized a single distribution channel to penetrate the remote and rural areas. iii) Utilized their already built brand identity to influence the market. B. Dynamic Positioning Strategies :
i) Depending on the local tax rates, HUL fixed different values of price in different states of India. This was a major step towards the success story of Wheel, since dynamic pricing exhibited HUL’s understanding of the consumers’ mind and comfort zone. ii) Took a clever step by directly pointing out in its advertisement the fact that Nirma detergent was not good for the hands of the customer, it caused burning.(Product level comparison) iii) HUL analyzed the consumers’ behavior and interests, thus confidently added a classic Bollywood jingle to its product advertisement - “Dekho Dekho Dekho”, which was a colorful and wild attempt. It easily proved to be a great hit since the Indian consumer section loves to relate to Bollywood. C. New Targeting Strategies:
i) HUL discovered they require producing a ‘low-price’ product, without compromising the ‘quality’ that would act as an identity of its king-size brand name. ii) The demand of the moment was a ‘low-price’ detergent, thus HUL quickly formulated strategies to follow the ‘Bottom of the Pyramid Approach’. iii) HUL’s most...
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