Hindustan Lever Limited (HLL) faced competition from Nirma detergent in the 1980s as Nirma was gaining market share, particularly in rural areas. To counter Nirma, HLL launched Wheel detergent in 1985, priced similarly to Nirma. HLL also launched Rin detergent bars to compete with Swastik's detergent bars. Additionally, HLL improved its supply chain operations by selecting new plant locations and using contract manufacturers, gaining costs savings. HLL's marketing campaigns for Wheel emphasized its superior cleaning power and safety over Nirma.
Hindustan Lever Limited (HLL) faced competition from Nirma detergent in the 1980s as Nirma was gaining market share, particularly in rural areas. To counter Nirma, HLL launched Wheel detergent in 1985, priced similarly to Nirma. HLL also launched Rin detergent bars to compete with Swastik's detergent bars. Additionally, HLL improved its supply chain operations by selecting new plant locations and using contract manufacturers, gaining costs savings. HLL's marketing campaigns for Wheel emphasized its superior cleaning power and safety over Nirma.
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Hindustan Lever Limited (HLL) faced competition from Nirma detergent in the 1980s as Nirma was gaining market share, particularly in rural areas. To counter Nirma, HLL launched Wheel detergent in 1985, priced similarly to Nirma. HLL also launched Rin detergent bars to compete with Swastik's detergent bars. Additionally, HLL improved its supply chain operations by selecting new plant locations and using contract manufacturers, gaining costs savings. HLL's marketing campaigns for Wheel emphasized its superior cleaning power and safety over Nirma.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
mAishwarya Lahiri, Bikash Jyoti Borah, Divya Sarin, Joy Chakravarty,
Anubhav Khandelwal, Harsha Jagasia, Daniel Fernandes, Ananya Mohanty
V ine of the oldest players V Result of merger between William Hesketh Lever- England, Margarine Unie- Netherlands and Lever Brothers- India V Total size of HLLǯs detergent business: Rs. 2000 crores (nearly 40% of the 5000 crores market) V = key brands- Surf, Rin and Wheel, and smaller brands like Sunlight and 501, and Rin ALA V Started with door to door delivery- reached up to 200kgs a day V Was sold in poly bags, as compared to surf Ǯs significantly expensive cartons V Positioned as a cheaper alternative to Surf and as a superior product compared to inferior washing soaps V Became a symbol of a low priced, good quality detergent V sales grew at a rate of 49% V Aimed at the unorganized laundry soap market in the urban and rural areas V launched Nirma detergent bar, to counter Rin, selling at one third of the price of Rin. a
m Creating a jingle that connects to the market
m A new fresh advertising campaign m Concentrating on cost m Guerilla advertising m IMC m New agency: new ideas, new creative ¢
r Nirma consumers received Dzacceptabledz quality in lieu of low price
r HLL CiULD possibly follow this way.
V
r This is what HLL did
r They launched DzWheeldz
V =
r Nirma was popular in Gujarat in 1980s
r Was gaining on markets as yet unexplored by Surf (middle to
lower classes, rural)
r Surf could have adopted various measures like price decrease to
appeal to rural markets Î
r Some amount extra with pack
r Free items (buckets etc)
r Produce sachets
r Stick sachets in magazines and newspapers
a decided to sell Surf in polybags as against its previous expensive cartons ¢
V Earlier, Surfǯs campaign ads were always used
to establish ǮSurf washes whiterǯ. V In 1985, HLL created a character called potrayed by TV artist Kavitha Chowdhary. Lalithaji represented a smart housewife who knew that good value always comes at a price. Î
V Then launched a white detergent powder
called n 1985
V priced to match Nirma
V targeted the eastern and southern markets
where Nirma was not very strong 4 V R&D department of HLL was given the responsibilty of producing a low-cost detergent, which gave better performance, at the same time, without any side-effects like ones caused by high soda-ash content in Nirma. V 1986: developed a NSD(non-soap detergent):
V launched as a detergent bar too to counter Swastikǯs Super 777 _ V carefully selected the locations for new plants in Gujarat, Uttar Pradesh, Rajasthan, Punjab and Pondicherry V HLL supplied the raw materials, the contractors hired their own labour and produced the detergent. V provided HLL with greater flexibility to start new units faster, thus gaining concessions and significant cost savings. å
Î
V Wheel Detergents powder was packed in 30-
gram plastic sachets, instead of usual one-kg packs. It was priced at Rs. 5.50 as against Nirmaǯs Rs. 5.25. ü
V campaigns emphasized that Wheel provided
Dzextra power, extra lather and was safe on hands and clothes.dz
V aimed at creating dissonance in the minds of
Nirma buyers about the safety aspects and the benefits of switching over to Wheel.