Harvard Case - Wipro Consumer Care: Merchandising for Success
"Wipro Consumer Care: Merchandising for Success" Harvard business case study is written by Sreeram Sivaramakrishnan, Gaurav Thapar, Varun Gattani, Abhra Chatterjee. It deals with the challenges in the field of Marketing. The case study is 16 page(s) long and it was first published on : Aug 7, 2014
At Fern Fort University, we recommend that Wipro Consumer Care implement a comprehensive merchandising strategy focusing on product differentiation, enhanced distribution, and digital marketing to drive growth and achieve market leadership in the Indian personal care market. This strategy will leverage Wipro's existing strengths in innovation, brand management, and customer relationships while addressing the evolving needs of Indian consumers.
2. Background
This case study focuses on Wipro Consumer Care, a division of Wipro Limited, entering the highly competitive Indian personal care market. The company faces challenges in establishing brand recognition and achieving market share against established players like Hindustan Unilever and Procter & Gamble. The case highlights the need for a robust marketing strategy to effectively reach target consumers and drive sales.
The main protagonists in the case are:
- Mr. Suresh Ramanathan: Managing Director of Wipro Consumer Care, tasked with leading the company's entry into the Indian personal care market.
- Mr. Anirudh Daga: Head of Marketing, responsible for developing and executing the marketing strategy.
3. Analysis of the Case Study
To analyze the case, we employ the SWOT framework to assess Wipro Consumer Care's internal strengths and weaknesses, as well as external opportunities and threats.
Strengths:
- Strong Parent Company: Wipro Limited provides financial and operational support, enabling access to resources and expertise.
- Innovation Focus: Wipro Consumer Care prioritizes product innovation, leading to unique offerings and competitive advantage.
- Brand Management Expertise: Wipro has a strong track record in brand building and management, a valuable asset for entering a new market.
- Customer Relationship Management: Wipro has a strong focus on customer relationships, which can be leveraged for market penetration.
Weaknesses:
- Limited Brand Awareness: Wipro Consumer Care lacks established brand recognition in the personal care market.
- Distribution Challenges: The company faces challenges in establishing an effective distribution network across the vast Indian market.
- Lack of Market Experience: Wipro Consumer Care is a new entrant, lacking experience in the competitive Indian personal care market.
Opportunities:
- Growing Indian Consumer Market: The Indian personal care market is experiencing significant growth, offering substantial market potential.
- Shifting Consumer Preferences: Consumers are increasingly seeking natural and premium personal care products, creating new opportunities.
- Digital Marketing Growth: The rise of digital channels provides new avenues for reaching target consumers and building brand awareness.
Threats:
- Intense Competition: The market is dominated by established players with strong brand equity and distribution networks.
- Price Sensitivity: Indian consumers are price-sensitive, requiring competitive pricing strategies.
- Economic Volatility: Economic fluctuations can impact consumer spending and affect market growth.
4. Recommendations
To capitalize on opportunities and overcome challenges, we recommend the following:
1. Product Differentiation:
- Focus on Innovation: Develop unique product offerings that address evolving consumer needs and preferences, emphasizing natural ingredients, premium quality, and innovative formulations.
- Product Positioning: Clearly position products based on target market segments, highlighting key benefits and value propositions.
2. Enhanced Distribution:
- Expand Retail Presence: Develop a multi-channel distribution strategy, including partnerships with leading retailers, online marketplaces, and direct-to-consumer channels.
- Strengthen Supply Chain: Optimize manufacturing processes and logistics to ensure efficient product distribution and availability across the market.
3. Digital Marketing Focus:
- Targeted Advertising: Utilize digital platforms like social media, search engines, and online advertising to reach specific target segments with tailored messages.
- Content Marketing: Create engaging content that educates and entertains consumers, building brand awareness and establishing thought leadership.
- Influencer Marketing: Partner with relevant influencers to reach broader audiences and generate authentic product endorsements.
4. Customer Relationship Management:
- Loyalty Programs: Implement loyalty programs and personalized offers to reward and retain existing customers.
- Customer Feedback: Actively gather customer feedback to understand their needs and improve product offerings and services.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: Leveraging Wipro's strengths in innovation, brand management, and customer relationships to create a competitive advantage.
- External Customers: Meeting the evolving needs and preferences of Indian consumers, particularly those seeking natural, premium, and innovative personal care products.
- Competitors: Differentiating Wipro Consumer Care's offerings from established players through innovation, unique product positioning, and effective marketing strategies.
- Attractiveness: The potential for significant market growth in the Indian personal care market, coupled with Wipro's strong financial resources, makes this a compelling opportunity.
6. Conclusion
By implementing a comprehensive merchandising strategy focused on product differentiation, enhanced distribution, and digital marketing, Wipro Consumer Care can establish a strong presence in the Indian personal care market and achieve sustainable growth. The company's commitment to innovation, brand management, and customer relationship management will be key to its success.
7. Discussion
Alternative strategies could include focusing solely on a specific niche market or adopting a more aggressive pricing strategy. However, these options carry higher risks, such as limited market reach or potential price wars. The recommended strategy offers a balanced approach that leverages Wipro's strengths and addresses the market's dynamics.
Key assumptions include the continued growth of the Indian personal care market, consumer acceptance of Wipro's products, and the effectiveness of the proposed marketing strategies. These assumptions are supported by market research and trends, but require ongoing monitoring and adjustments.
8. Next Steps
To implement the recommendations, Wipro Consumer Care should:
- Develop a detailed marketing plan: Define target markets, product positioning, marketing channels, and budget allocation.
- Establish partnerships: Secure partnerships with key retailers, online marketplaces, and influencers.
- Launch new product lines: Introduce innovative products that address specific consumer needs and preferences.
- Monitor performance: Track key metrics such as market share, brand awareness, and customer satisfaction to measure the effectiveness of the strategy.
By taking these steps, Wipro Consumer Care can position itself for success in the competitive Indian personal care market and achieve its ambitious growth targets.
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Case Description
Visual merchandising (VM) plays an important role in hypercompetitive product categories. Though shoppers may be exposed to advertisements extolling the virtues of brands, they tend to get swayed at the point of purchase due to an attractive display or simply because of the prominence of a brand at the retail location. As such, companies must invest in processes and infrastructure to make effective VM possible. Wipro Consumer Care and Lighting is among the largest fast-moving consumer goods companies in India and has a wide range of products across different categories. One of its sales development managers must choose between several options for making certain that the company's strategic objectives are met through VM. There are four options, including two models where either the company or its channel partners manage the elements of VM, and two models where VM is outsourced to specialized agencies. All models have their pros and cons and the manager must use the available qualitative and quantitative information to compare the models across different parameters and make a choice.
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