Abstract Lifebuoy
-
Upload
shlok-malhotra -
Category
Documents
-
view
108 -
download
0
Transcript of Abstract Lifebuoy
Abstract:
The case study helps in understanding the difference between a product and a
brand. It also enables to study the behavior of a product during various stages of its
life cycle. The current competitive marketing environment during the new
millennium is forcing managers to understand the needs of modern consumers and
reevaluate the changing opportunities and threats in an evolving global marketing
place. The concept of Product Life Cycle (PLC) since its inception in the early
1950s, gained significant recognition as a tool for effective marketing strategy in
understanding the behaviour of product on sales, profits, 4P’s of marketing and
consumer approval.
Since inception in late 19th century, Lifebuoy, was a nimble and good citizen
brand of India, reaching millions of rural customers with a promise of ‘health and
hygiene’ as a platform of its business. Its famous advertising jingle, tandurusti ki
raksha karta hai Lifebuoy… was so famous that it enabled the brand ‘Lifebuoy’ to
be perceived as a ‘red carbolic soap’ for several decades. The brand passed through
prolonged stages of growth and maturity during most of the second half of 20th
century and was faced with a decline stage during early 21st century with sales
falling at the rate of 15%–20% per year. The downward trend of Lifebuoy carbolic
soap sales made Hindustan Lever Ltd., to withdraw the product category during
2002 and rejuvenate the brand with prudent marketing strategies by optimally
utilising the brand image. This case study analyses how Lifebuoy managed to
extend the brand life cycle.
Pedagogical Objective:
To understand the concept of product in product life cycle and brand life cycle
To analyse various stages of Lifebuoy’s life cycle during 20th century
To understand how the strategies of brand rejuvenation helped in extending the
life cycle of Lifebuoy.
Keywords : Lifebuoy; Product Life Cycle; Brand Life Cycle; Product; Brand;
Marketing Strategies; Hindustan Lever; Indian Soap Industry; Carbolic Soap;
Lifebuoy Swasthya Chetna; Brand Rejuvenation; Brand Management; Extending
the product life cycle; Stages in PLC; Repositioning, Marketing Management;
Marketing Mix; Market Segmentation; Product Life Cycle; New Product
Development; Consumer Behavior; Marketing Case Studies; MBA; Marketing
Course for MBA Marketing Course Case Map; Course Case Map; Case Map
Contents:
The Beginning of Lifebuoy’s Life Cycle
Lifebuoy's Life Cycle Changes in India
A New Life Line in Lifebuoy’s Life Cycle
Design and communication strategy for Lifebuoy’s re-launch
Rural India has ample of opportunities all waiting to be harnessed for the much-
needed volumes. Not astonishingly, it has become the latest marketing catchword
for most FMCG (Fast Moving Consumer Goods) majors. Some of the requisites
for making an impression in the rural market include:
1) Strong distribution channel
2) Minimum profit margin
3) Simple marketing message
4) Lesser-priced packs to increase affordability
5) Packaging in smaller units and localised design that attracts consumers
6) Convenience of storage while use
7) Thorough knowledge of the village psyche
In brief, the strategy revolves around what attracts rural consumers to a product.
Hindustan Lever Ltd. (HLL) is one of the few FMCG’s to be highly successful in
rural India. It has been a pioneer in reaching out to the smallest of villages with
innovative products. HLL is also open to the idea of building rural-specific brands
since it will only dispel the marketing media effort for the brands. Today, HLL’s
brands have become household names. No one knows Indian consumers better
than HLL. The company has access to both global and local research, technology
and development teams. It is fully supported by its nation-wide manufacturing and
distribution network.
HLL is India's largest marketer of home & personal care products, foods &
beverages. Recently, it launched “Pureit”, which is an in-home water purification
system that gives water ‘as safe as boiled water’. It is also the largest exporter of
branded FMCGs, marine products, basmati rice and one of the global players in
castor.
When we speak about HLL, the first name that comes to our mind is Lifebuoy. It
was sold in India as early as 1895, but was officially launched and marketed from
1935. For over 100 years, Lifebuoy with its distinct perfume and catchy jingle was
associated with health and well-being, making it the world’s largest selling soap
brand. Its ads carried the message that Lifebuoy washed away germs and kept one
protected and healthy.
Lifebuoy is among HLL's power brands which contributed to nearly 30% of the
company’s detergent turnover and was a leader in the carbolic segment with almost
95% market share. It went through a major re-launch for the first time in 1964 with
a change in product formulation, shape and packaging. In mid 2001, HLL then
launched Lifebuoy Active and Lifebuoy Extra Strong. However, these launches led
to a minimal turnaround. For nearly 107 years, the brand hadn't undergone a major
restructuring and repositioning. The sales were declining since consumers were
shifting from carbolic based soaps to beauty soaps with better fragrance and lather.
The decline of the brand, prompted HUL to re-think its marketing strategy.
Lifebuoy underwent a major turning point in its history with the re-launch in 2002,
2004 and again in 2006. The re-launch was done to beat the slow-moving sales. To
register positive preference among consumers, HLL challenged everything that
Lifebuoy stood for.
Lifebuoy is now an entirely new mix with a superior formulation, fragrance, lather
profile and a contemporary shape. It offers an improved bathing experience and
skin feel. The new Lifebuoy is targeted at today’s astute housewives who seek
family health protection. It made a thoughtful shift in positioning from being a
male soap, champ of health to a family soap with a more reliable health protection
against germs for the entire family.
The new range includes Lifebuoy total, Lifebuoy deofresh, Lifebuoy nature,
Lifebuoy care, Lifebuoy activ fresh, Lifebuoy International Plus, Lifebuoy
International Gold, etc. Apart from this, Lifebuoy also offers specialised products
like Lifebuoy HandWash and Lifebuoy Clearskin, which provides treatment and
protection against acne.
HLL did huge rural campaigning using the idea of hygiene as a podium to
reposition its brand. The company devised a strategy to ensure its focus on family
health themes via TV and print campaigns in the rural markets. They conducted
consumer education exercise using "Germ tests" through multimedia. They also
explored the opportunity to spread message during World Health Day. HLL also
launched Lifebuoy Swashthya Chetana, the first single largest rural health and
hygiene educational program. The campaign aimed at educating children and
community about the threat of unseen germs and maintaining good health through
practice of basic hygiene.
HLL used innovative communication tools at melas, festivals, haats, etc. to spread
awareness about hygiene and health by product demonstrations. These techniques
were used in order to change the hand-washing and bathing habits in rural India.
For example, people in mela were asked to put their hands below a special camera
where they could see the germs on their hands and were asked to wash their hands
with Lifebuoy and see the difference. Hand-carts were also displayed at the
company’s stall for attracting more people.
Ideas like putting stickers on hand pumps, walls of the wells, putting tin plates on
trees surrounding the pond were some of the innovative media utilised by
Lifebuoy. The idea was to market the product not only at the point of purchase but
also at the time of consumption. Other media techniques used were shop-fronts and
cinema van operations having films and audio cassettes with songs and dance
sequences from popular films that comprised ads of HLL products during breaks.
The reach of conventional media is not that effective in rural markets. Moreover, it
is not always viable to cover all these markets due to high costs involved. Yet,
these markets are vital since the growth potential is high. Operation Harvest served
as a medium to augment the role of conventional media in rural India and in the
process built relations and loyalty with consumers.
HLL has always been at the front line of trying out with innovative schemes to
reach rural consumers. It deliberately introduced small-sized packs of Lifebuoy
targeted at rural markets. Cross company product mixes were also offered to lure
consumers. To induce growth, HLL dropped the prices of its products and has been
also trying to upgrade its consumers by cannibalising its own brands.
Rural retailers and quick product availability influence the purchase decision of
rural consumers. HLL therefore undertook projects to enhance the rural supply
chain by a network of sub-stockists and 'Project Shakti' in partnership with the
Self-Help Groups of rural women. These Self-Help Groups acted as direct-to-home
dealers. In rural India, women are the catalyst of change and that is why Project
Shakti kept women in focus. It is they who give Shakti its strength. Project Shakti
has proved to be a great marketing venture for HLL since it works in both terms
which is promotion as well as a distribution network with social welfare benefits.
The model created a win-win partnership between HLL and its consumers, some of
whom depended on the organisation for their livelihood and helped building a self-
sustaining virtuous cycle of growth for all. Another good initiative taken by HLL
under Project Shakti is `I-Shakti', an IT-based rural information facility that
provides solutions to major rural needs such as agriculture, education, vocational
training, health and hygiene.
Rural markets are still evolving and there is no fixed layout to understand
consumer behaviour. Lot of research is yet to be conducted for understanding rural
consumers.