Presented by : Abhishek kumar

MARKETING -IT 1

PRODUCT MANAGEMENT

LIFEBUOY IN INDIA- PRODUCT LIFE CYCLE STRATEGIES

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FMCG is the 4th largest sector in the Indian economy

Contributes to 9.5% of GDP of our country

The overall FMCG market is estimated to be USD 180Bn(INR 12,24,000) crore

The market has grown at CAGR 14% between 2014- 2015

15- 20 crore consumers of FMCG products will be digitally influenced. These consumers will spend USD 40Bn(INR 272000).

FMCG

FOOD AND BEVERAGES

(19%)

HEALTH CARE(33%)

HOUSEHOLD CARE(22%) &

PERSONAL CARE(26%)

FMCG SECTOR

www.ibef.com, www.BCGconsultancy.com, www.cii.com

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Personal care market gives revenue of USD 45 Bn(INR306000) crore

Soap market of India constitute revenue of USD 2.5Bn(INR17000) crore

Major players of Personal Care sectors are ITC, HUL,P&G,DABUR,MARICO

HUL controls almost half of the country's Rs 17,000 crore soap market with brands like Lux, Lifebouy, Breeze, Hamam, Liril, Dove etc.

Significant demographic shifts : 70% increase in income levels, 100 Mn youth entering the workforce, increasing nuclearisation & 35% of Indians living in urban centers

PERSONAL CARE

source: http://economictimes.indiatimes.com/industry/cons-products/food/at-war-hindustan-unilever-takes-on-itc-in-the-soap-market/articleshow/50240128.cms www.ibef.com, www.BCGconsultancy.com, www.cii.com

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HUL was established in 17 Oct 1933 by Lever Brothers

Headquarters in Mumbai, Maharashtra

Hindustan Unilever Ltd (HUL) is India's largest fast moving consumer goods (FMCG) company with a history of over 80 years in India

With over 35 brands spanning 20 distinct categories.

The Company has over 16,000 employees and has an annual turnover of Rs 30,170 crores (US$ 4.93 billion) (financial year 2014 - 2015).

HUL

www.hul.com, www.ibef.com

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Food Division

Personal Care

Home care

Oral Care

PRODUCT PORTFOLIO

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EVOLUTION @ LIFEBUOY1796

PRESENT

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1895• Lifebuoy entered in Indian consumer market.• Its positioning in the market was clear with a promise that it kills

germs and keeps the body healthy.

19331935

• Lever established its first Indian subsidiary ‘Hindustan Vanaspati Manufacturing Company’ in 1933

• Further, it established ‘Lever Brothers India Limited’ followed by another firm called ‘United Traders Limited’ in 1935.

1956 • The three firms merged to form Hindustan Lever Limited (HLL) a first foreign subsidiary company in India to go public with 10% equity offer.• Lifebuoy coined a distinct and jingling advertising campaign during that period, Tandurusti ki raksha karta hai Lifebuoy.

19631970

• HLL launched a new product called ‘Lifebuoy Special’ as a line extension

• 1970s, Lifebuoy witnessed the signs of maturity with sales growing, but at a slower pace compared with the previous years.

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19771980

• Nirma’s aggressive marketing strategies by 1977 made it 2nd in the soap market.

• Lifebuoy’s marketing strategy with low pricing and low promotional strategies were challenged by new local marketers.

19901991

• The soap industry witnessed new product and new soap category.• Lifebuoy its monopoly was challenged by new brands with more

value prepositions such as freshness, beauty care, nature-care, and deodorant in soap bar manufacturing.

• Soaps, detergents and household care products of HLL fell from the heights of 69% in 1992 to 45%.

• HLL posted a profit growth of 22.42%to INR 1,310 crore in 2000 as compared to INR 1,070 crore in 1999, its net sales moved up with a marginal growth of 4.5%to INR 10,604 crore as compared to INR 10,142 crore of previous fiscal year

2001 2002

• Dragged the market share by value of Lever’s soap business to 59.1% in 2000 from 62.7%.

• Therefore they adopted to have core Positioning though rejuvenation.

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2001

• Lifebuoy to undergo rejuvenation in positioning from a ‘male brand’ to a ‘family brand’ .

• Lifebuoy introduced Active Green, Lifebuoy Hand Wash, Lifebuoy Talcum Powder.

2002

• To aware consumer about ‘health and hygiene’, during 2001, HLL set up 14 stalls at Maha Kumbh Mela in Allahabad city.

• Lifebuoy launched a 5-year massive rural health and hygiene programme with an investment of USD 5.4Mn INR(36.72) crore million called Lifebuoy Swastya Chetna (LSC) to create awareness about the importance of washing hands with soap.

• Sales grew 20% after LSC programme, Lifebuoy targeted to promote social awareness and reach the poor in rural markets who constituted a major chunk of population.

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2006

• In 2006, India constitutes 6.27 lakh villages covering 72% of total population, Lifebuoy’s focus on the bottom of pyramid that constitutes a major section of rural population.

• Krish movie has a collaboration with Lifebuoy over the other brands since the brand is all about protection and Krrish’s character is also about protecting the world from enemies.”

• HLL’s expected growth in quarterly sales at 16.8% in December 2007 and 19.17% in March 2008, HLL intends to drive the mileage of the brand by using LSC as a tool of social change and marketing in rural areas.

2008

• Lifebuoy’s strategies enabled the brand to extend the life cycle indefinitely, with a set of promises and values that meet the needs of new generation customers. “Remember that brands that don’t keep up get lost quickly. They first become irrelevant, then invisible and then they’re gone.”

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WEAKNESSES1. Lower market penetration in urban areas as compared to rural areas

2.Initially positioned as a masculine soap, which was eventually turned as a family soap.

3. Not been perceived as a beauty soap, and is mainly used just for hand washing. Health care.

OPPORTUNITIES1. Products for an ageing Population.2. Strong focus needs to given on Hair Care Portfolio.3. Program which focus on Educating Conusmers Play a Vital Role.

THREATS1. International and Intense competition in this sector by domestic as well as the international competitors.2. Technology Development was at a slow pace.

SWOT ANALYSIS

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Geographic Demographic Psychographic Behavioral

Region- Rural and Urban

Age- 5-25, 25-45, 45 & above

Social Class:Lower, Middle, High

Occasion- Regular

City - Metro cities, Tier 1 cities, Tier 2 Cities, Tier 3 Cities

Gender- Male, Female

Lifestyle- health & hygiene orientation

Benefits- germ freeAttitude- Positive

Personality- Impulsive

User- Potential, First-time, Regular User

Brand Loyalty- Medium

• Targeted at the young Indian consumer for the age group of 5 to 25 years with the blend of health and hygiene in the product offering.

• First, Hindustan Unilever works with schools by targeting schoolchildren.

• In addition, the company focuses on newly married housewives.

SEGMENTATION TARGETING

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Lifebuoy, an undisputed market leader for 117 years, has a compelling vision “to make 5 billion people across the world, feel safe and secure by meeting their personal care hygiene & health needs”

Lifebuoy has journeyed from humble beginnings of being a chunky red bar of soap to an evolved range of general and specialized products across formats, offering solutions in the health and hygiene space.

Lifebuoy has a strong social mission, promoted through its rural hygiene programme, Khushiyon Ki Doli, which propagates the practice of hand washing with soap to reduce dirrhoeal deaths.

Lifebuoy is available in bar soaps, liquid hand wash, hand sanitizer and talc.

The first 28 days can HELP A CHILD REACH 5.

TAG LINE “LIFEBUOY HAI JAHAN TANDRUSTI HAI WAHAN“Healthy hoga Hindustan.”

POSITIOING

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Lifebuoy Dettol Savlon Nirma Cinthol

Company Hindustan Unilever

Reckitt Benckiser

ITC Ltd. Nirma Ltd. Godrej

Tagline Healthy hoga Hindustan

Be 100% sure Heals without hurting; Make your house a safe house

Soundriya sabun nirma

I use Cinthol. Do you?; Don’t stop

USP Lifebuoy provides 100% better protection from germs as compared to ordinary soaps

The first of its kind in anti-bacterial segment

Non burning antiseptic liquid

Quality at affordable price.

Brand equity among consumers

COMPETITOR ANALYSIS

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High Price

High QualityLow Quality

Low Price

PERCEPTUAL MAPPING

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Lifebuoy Soap

Cleanness/Hygiene

Health

1st Level of Association

2nd Level of Association

LADDERNING PROCESS- A QUANTATIVE MARKET RESEARCH TECHNIQUE

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Intr

oduc

tion

Grow

th

Mat

urity

Decl

ine

Decl

ine

Decl

ine

Growth

Grow

th

Grow

th

Sale

s

Time

Injections of new life

PRODUCT LIFE CYCLE

SCALLOPED PATTERN- In this Pattern sales pass through a succession of life cycles based on the discovery of new-product characteristics, uses or users.

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Positioned targeted Blue collared and children but never the woman.

During 1996: rural consumer’s query-”why do I need lifebuoy when all soaps clean.”

Nirma entered the market in detergent and soaps and later moved to toilet soap manufacturing.

Nirma’s aggressive marketing strategies made it world’s largest volume seller and a potential rival to HLL.

Challenges

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ContinuedSales of lifebuoy started diminishing in rural market

Lifebuoy’s monopoly was challenged by new brands with more value prepositions such as freshness, beauty care, nature-care and deodorant in soap bar manufacturing.

During 1993-94 there was a significant role in changing consumer needs.

•7,53, 311 UNITS – soaps, sales in 9 months ended on 31st Dec 2015•Total revenue in 2014 – 2015 Rs.31,124 crores•Soap comprises 32% of turnoverFINANCIAL•The R&D team of over 750 people comprises highly qualified scientists and technologists working in areas of Home Care, Personal Care, Foods & Beverages and Water Purification•In 2014, used almost 60,000 tones of renewable biomass as fuel.

R & D•Sunset, an initiative where employees can share ideas for quick solutions•A 70:20:10 approach to learning.•70% of learning is done through on-the-job training, unique job experiences, challenging assignments and building business-linked capabilities; 20% is through coaching and mentoring and 10% of learning is through formal development.

Human Resource

INTERNAL FACTORS

Political

Liberalisation of market in 1970 and1991 made international players to come to India.

Economic

Per capita income in 2006 was $797.26 i.e. India was underdeveloped countryBuying power increased i.e. $6,300 is the per capita income as per on 2015.

Social

With the rising education and disposable income levels, the need for hygiene and personal / skin care becomes important.Premium soaps are thus targeted at the audience to change their habits by raising their aspiration levels.

EXTERNAL FACTORS

Technological

Technology like (SCM) Supply Chain Management and(E-CRM) Electronic Customer Relationship Management will play a vital role.

Environmental

Information & awareness of product is present as before it was the provided information from company only.Carbon emission decreased by 62%.

Legal

Fair employment law.

Extension Strategies:1. Line Extension

2. Brand Extension

MARKETING STRATEGIES

PLACEHUL's retail network of over 7.2-million outlets.Distributors 3.2 Million

1 mn direct outlet and 6.3 mn total outlet

PROMOTION:Positioned as ‘health and hygiene’ soap

Now promoted as family soap for both male and female

Initially promoted by sportsman life football playersMARKETING MIX

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Promotional Strategies

1963 promotion through Commercials, print Ads, Poster hoardings & small clippingas in cinema halls

In 1999 Jingling campaign “Tandrusti ki raksha karta hai lifebuoy”.

Focused on hard workings, savings minded & economic class of people

Symbolic presentation for soap i.e. Red soap

June 2006 collabrorating the krrish movie, printing Krrish’s character on Lifebuoy packs as Krrish’s character is also

about protecting the world from enemies

(LSC) Lifebuoy Swastya Chetna created awareness about washing hands & covered 43000 villages, 60 lakh

children.

Reached the poorest of the poor in India and other developing countries as India rural population in2006 was 72 %

of population

Promotional Strategies

REFERENCES• http://www.tradingeconomics.com/india/gdp-per-capita• http://

www.outlookbusiness.com/strategy/feature/the-soap-opera-begins-1195• https://books.google.co.in/books?id=b-• http://

usd.fxexchangerate.com/inr-2015_02_26-exchange-rates-history.html