Lifebuoy

By: Group 2

Q1 - Lifebuoy: Brand or Product?

“Brand lifebuoy” was certainly a bigger hit in rural India

The brand itself became a product

Its better to be first than better itselfBe first in your category rather imitating.

• First mover to a different category ( Health proposition in rural markets)

• Unique positioning and promotional activities pertaining to rural consumers.

The color red becamesynonymous with

Lifebuoy

Relevant packaging and wall

advertisements

Messages in local languages: easily

understood

Tandurusti ki rakhsha karta hai lifebuoy!

Q2 - Product and Brand life cycles for Lifebuoy

Red carbolic soap, strong smell and health proposition

Market saturation and stiff competition in the category Launch of carbolic soap by Nirma (1980-90)

Consumer aspirations led to focus on different characteristics of soaps like Freshness , beauty care , nature care, deodorant in soap.(1990 onwards)

So what next from here??

Brand rejuvenation

Lifebuoy started breaking its image of a simple red carbolic soap with a stronger smell.

started with new target segment (Mothers in family) keeping core positioning same.

As a product Lifebuoy was now into multiple forays to satisfy changing consumer needs and aspirations

But as a Brand It rejuvenated itself from maturity to growing stages.

Q3 - Core positioning, the reason for success

Strong core positioning of health benefits

Launched in India at the time of plague and became popular

No substitute (with similar positioning) led it to blockbuster sales

Lifebuoy became synonymous with health in rural areas

Hence, it was very much necessary to keep alive the core positioning of Lifebuoy and continue the legacy of its brand.

That’s why Lifebuoy did not change its core positioning but only changed the target segment.

“Tandurusti ki raksha karta hai Lifebuoy…”

• Time: Post Independence era• Consumer Preference: Functional Products• Target Segment: Hardworking, Savings-minded and Economic Class of people.• The period belonged to famous patriotic slogans like ‘Jai Jawaan and Jai

Kisaan’

Q4 - Lifebuoy's jingle was a major factor in prolonging its product life cycle. Please justify.

• Advertisement focused on men representing hard work and heroic deeds such as Farmers and Soldiers. • Targeted towards blue-collar workers.• Resonated well with the rural population of India (70%

of total population at the time)• The jingle continued well into 1990s.• Thus this jingle prolonged the growth phase of Lifebuoy.

“Tandurusti ki raksha karta hai Lifebuoy…”

Q 5 - Please review the product line category for toilet soaps of HUL in the late 90s in terms of

width and depth.

HUL Toilet Soaps

Breeze

Family beauty soap with promise

of fresh feeling of nature.

Dove

Beauty Soap for soft skin

Hamam

Mild family soap

containing natural

ingredients

Lifebuoy

Health soap for the

hardworking

Liril

Freshness soap

Lux

The beauty soap used by

film stars.

Pears

The gentle soap

Rexona

Aromatic natural skin care soap

Thus we see that HUL in the late 90s had a wide product mix width in the toilet soaps category to cater to different sectors. But drop in sales of Lifebuoy brought along a drop in revenues from this sector for HUL.

Q6 - Identify main reasons for HUL not offering any brand extensions in Lifebuoy soap category early on

• Established brand – No competition• Health Focused Brand Positioning:

‘Tandurusti ki raksha karta hai Lifebuoy’

High functional benefit: consumers perceived Lifebuoy as a ‘health care’ icon Mass appeal to rural consumers: advertisement focused on hardworking,

savings oriented and economic class of people High adoption: 70% of total population

• High Popularity – Lifebuoy became synonymous with red coloured soaps

Q7 – Analyse reasons for drop in soaps and detergents and increase in personal and foods category for HUL between 1992 and 2002

• Severe price led competition• Lifebuoy active launched and took 3.7% market share• It helped offset the decline of Lifebuoy carbolic

• Nirma emerged as a very strong brand • greater value for money • deep market penetration

• Wider variety of soap products/alternatives• Freshness/Beauty care/Nature-care/Deodrants

• Increased national income led to demand for costlier products• Services sector grew by 10.5% vs. 7.1% manufacturing

• Consumers asked ‘why do I need Lifebuoy when all soaps clean’• Lifebuoy's value proposition was lost

• Foods business grew on the back of a continuously improving and robust supply chain

Q8 - Reasons for Brand Rejuvenation

Declining Market Share

Stiff Competition/ New entrants

Changing Consumer Tastes

& Preferences

GlobalizationIncrease in Personal

Disposable Income

Availability of New brands with

Variants

Most Importantly, Lifebouy was synonyms with Health & Hygiene. Lifebouy also became the Generic Category name for Soap, thus a Rejuvenation of the brand was required.

Rejuvenation in urban and Rural India

Urban India Shift in Consumer preference

due to liberalization Increased focus on “ Family

Brand “ than just Males Shift from Soaps to Hand wash Increased focus on Health Awareness through

Advertisements

Rural India Focused on making consumers

aware of the benefits and requirements of washing hands

Generating awareness through Melas

Lifebuoy Swastya Chetna

Q9 - Brands that don't keep up get lost quickly

Irrelevant Invisible Gone

• To a large extent, this statement is applicable on the declining life cycle of Lifebuoy in the 90s because it was unable to address the following points:

Low advertising budgetNo line extensionsFocus on blue collared workers and childrenFailed to design strategies for the aspiring class of consumersFailed to compete with low cost soap manufacturersFailure to create a distinct positioning in the urban market

Lifebuoy - Repositioning

• Repositioning of Lifebuoy has definitely helped the brand

• By targeting women consumers Lifebuoy has become a family product

• Moved from rural segment to aspiring class via line extensions

• Repositioning has also helped the brand to rise above the product

• Lifebuoy changed its target segment but kept the same positioning garnering more market share