A CASE STUDY ON HUL & SOAP MARKET

Designed and prepared by AJAZ UL ISLAM student SMVDU

HUL PRODUCT LINE HOME & PERSONAL CARE

ORAL CARE

SKIN CARE

LAUNDARY

DEODRANT & COLOR COSMETICS

AYURVEDIC & PERSONAL CARE

COFFEE &TEA

FOODS

WATER

CAUSES OF DIARRHEA

• Lack of sanitation facility.• 26% of the urban Indians (173million) and 74%

of rural Indians (492 millions) do not wash their hands with soap daily.

• Less then 29% of the Indians have access to modern sanitation facilities.

Hand wash as a preventive measure:

• WHO---washing hands with soap reduced diarrhea attacks by 48%.

• Although the penetration of soap in Indian market is very high with 95% of Indian household owing soaps , 665 million Indians do not use soap everyday out of these 26% are Indian and 74% are rural.

May 02,2012 Revenue from selling soaps and detergents rose 29 percent to 28.3 billion rupees in the fourth quarter. In the detergent portfolio, Surf, Rin and Wheel reported a double digit growth while in the soap portfolio Lux and Lifebouy grew in double digit.

Why the problem still prevails????

Disease fell into multiple domain of ministers of public health

Attention paid to hot issues like HIV

Behaviour programs to address diarrheal disease are difficult to design and implement.

Dispersed population

How to mitigate the problem….

Deep experience in conducting and analysing consumer research to identify behaviour.

Expertise to craft communication messages and direct contact programs.

Strong brands that can serve as routes for driving behavioural change.

Vast distribution network.Global reach.

The largest soap manufacturer in India

HLL’s ability to reach the masses

HLL’s formula is working

BUSINESS OPPORTUNITY THROUGH HEALTH HLL accounts 60% of the soap sales in India

Leverage Health Messages through the Global Public-Private Partnership for Handwashing with Soap

HLL learned of PPP being developed between the World Bank, Water of Sanitation program , London School of Hygienic and Tropical Medicine , UNICEF, USAID and Environmental Health Projects.

The structure for the program was based upon the successful Central American Hand washing Initiative , a public private Partnership that united four corporations:

1. La Popular.2. Colgate-Palmolive3. Unilever4. Punto rojo

First program needed scientific credibility and leadership in understanding the fundamentals of hand wash on health and hygiene.

Team requires expertise in behaviour change and marketing.

In order to reach the entire population with hand wash communication the PPP needed government support to utilize existing infrastructure channels.

KERALA PROGRAM

It was divided into four parts:1. Mass media campaign.2. Direct contact campaign.3. Evaluation.4. Communications development.Only 42% mothers used soaps after using toilet.25% used soap after cleaning up a child . 11% used soap before eating and 10% used soap before preparing food. 70% of household would be reached 43 times a year via mass media.35% of household would be reached nine times a year through the direct contact

HLL and PPP:Aim: to stimulate demand for soap

through education campaigns.

LIFEBUOY

It was created in 1894 by mixing the residues of sunlight detergent and cresylic acid to create a strong soap.

Launched in 1895 in U.K.

Introduced in 1935 in India.

1964 saw the re-launch.

Initial jingle “Tandurusti ki raksha…” to “Koi Dar Nahi”.

New launches of Lifebuoy clear skin & active soap.

In the 1960 the message was introduced through the sports idiom and the target group were the Indian male of age group 18-45 with a medium household income of Rs 2000/month.This person is an average farmer living in the town of 100000 or less .

1986 sales exceeded 100000 tones and 70% of revenue was from rural areas

Competition Faced from cheaply priced beauty bar segmentBrand revitalization on a

health Platform.Introduced talc and

shampoo also.Provided information how soap can help u to improve your health

Compared cost of soap with cost of health.

Product cost and marketing strategy

Carbolic smell …………………………………………..fragrant smellHard soap ……………………………………………………mild soapAdded Triclosan which further increased the strength to kill germs.Which was later replaced by name Active B

For this they incurred cost but since it was introduced for masses They increased price from Rs 8.50 to Rs9.50 and also made available in 60 gram packs of Rs 4.50

NEW COMMUNICATION CHANNELS Multi contact programs and Swastha chetna

HLL conducted research to understand rural behavior.Concept of cleanness in villages5/13 before eating, 10/18 before

preparing food. Also alternatives were used

Consumers were not using the soap as they did not know their hands are dirty

Ogilvy and Mather designed behavioral change educational program

Communicate the ill effects of germsHighlight active BMessages was as under:- Invisible germs are everywhere. Germs cause disease common to rural

families including painful stomach, eye and skin infections.

Lifebuoy soap with Active B can protect you from germs.

Wash your hands with soap to prevent infections.

HLL titled the program swasthya chetna or Lifebouy glowing health. It triggered the change to wash hands

very frequently. It included…

Before eating. After eating.

After using bathroom. After playing.

For bathing.

Program designed : low cost , scalable and sustainableInitial cost was estimated to be 4000 per visit but proved

costly. So local filters were hired. a/v were used in only low cost props. It reduced the cost to Rs 800/visit since the program can not be started at once in the whole country so certain areas were chosen. The areas were chosen on the basis of Per capita consumption per state States having strong loyalty to the lifebouy brand Reviewed districts to find which state has high number

of infrequent soap users and also which contributed high share to lighbouy.

then they cross referenced the data and selected areas with no accessibility of mass communication. Among those selected the villages with middle schools so that it could gain entry to community through local school system At the end lifebouy selected 1000 villages in nine states. They hired 127 prson team to reach these areas . Due to low cast they expanded to 70-80 million.

Behavioral change methodology.

Initiation and information

Large scale propagation

Reinforcement and propagation for sustainability.

Each exposure relies upon few key communication tactics Education Involvement Shock Reiteration RewardThese elements were structured in swasthya chetna visit.

Contact 1School and village presentation. Raju’s story Facilitator demonstrates invisible germs Chanting slogans of “lifebouy helps to

keep germs away” and “swasthya chetna” Students where asked to prepare for skit

on health issues

Contact 2Lifebouy village health day. Begins with health camp. Gives healthy children award

Contact 3Diarrhea management workshop.Dangers of diarrhea.How it is caused.

Contact 4 Launch the lifebouy health club. Formation of health club to carry the

hygiene activities.

Barrier Matrix:

WORSTLow returns

High risk

GAMBLEHigh returnsHigh risk

STABLELow returns

Low risk

BESTLIFEBUOYHigh returns

Low risk

0

ENTRY BARRIERS

X

Y

EX

IT

BA

RR

IER

S

BCG Matrix:

LIFEBUOY

This has become the citizen brand because it has gone for mental control

Conclusion

Differentiating soap product on the platform of health takes advantage of an opening in the competitive landscape for soap.Also many consumer believe a “visual clean is a safe clean”HLL through its innovative communication campaigns has been able to link the use of soap to a promise of health as a mean of creating behavioural change and thus increasing sales of its low cost , mass market soap. Statistics from the world bank founds that the when Indian population was evenly divided into five socioeconomic quintiles , incidence of diarrheal disease was similar across the quintiles

Incidence of diarrhea by socio economic quintiles

Prevalence of diarrhea

Poorest

Second Middle Fourth Richest Population average

total 10.2 10.4 10.2 10.1 8.5 9.9

urban 4.9 12.0 9.0 9.5 8.0

rural 10.3 10.2 10.4 10.3 10.2

The Economist reported that in England, fewer than one-half of British mother washed their hands after changing their children’s diapers. The growing population in developing countries are at risk from many of the same basic health issues stemming from poverty & poverty and its accompaniment of poor sanitation infrastructure lack of access to the health resources & inability to buy affordable preventing measures. HHL build brand equity around its ability to offer a better quality of life through health.

Methods for increasing market sales

HLL has helped create two initiatives to spread health and hygiene messages and expand the soap market .

Health in your hands Lifebuoy swathya chetna

HHL visibility Not branded Branded

Scope Whole population, all segment

Targeted population

Method 4 contacts with school children .daily contact with school hand wash

7 contact with school children . 1 contact with community. 1 contact with young mother.

Partners Local govt. health care system . Other MNCs

Local government school system

Total program cost (2002)(2003)

$ 3,493,333.33$ 2000,000.00

$ 695,652.17$ 1,252,173.91

Comparison between PPP and swasthya chetna.

HHL total program $ 444,444.44 $ 1,252,173.91

HHL cost per head $ 0.015 $ 0.018

Scalability

2001 1st meeting Preparation

2002 Preparation India 40m in 10,000 villages

2003 Total 49.2mGhana (20.2)May be kerala(29m)

Total :100 mIndia ( 9states) 70m in 18000 villages. Preparation for bangladesh

2004 TotalSenegal 9.9Peru 26.7Nepal 23.9China 1.12

Total India (11 states) 100 mBangladesh

Benefits Scales quickly can contribute money to those compaign

Branded targetted to largest growth segment .

Impact on behavior change & soap scales

While scalability seems to be greater with the PPP, direct benefit to corporate sales lie with Swasthya Chetna. Through strategic selection of villages , Swathya Chetna has maximized use of limited fund to reach targeted demographics to increase Lifebuoy sales. Research showa that use of a brand can help strengthen the health messages being delivered by conveying quality , increasing customer confidence and ensuring thaat messages are delivered in a non patronzing or demeaning tones.

Developing the expertise to sell healthHHL will undoubtedly continue to

evalute the advantage & disadvantage of both program to promote hygiene and soap as they move forward. Both program combine partnership, health education campaign and low cost product in order to successfully translate hygiene behaviour into increased sales in a scalable way.

A central challenge in selling health is the development of successful partnership between private business & public health offices and organization. Both groups need to invest together to create the market for a product . Both group are investing in & addressing& government are interesting in increased quality of life , while private businesses seek increased earning.

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Thank you