LifebuoyProduct life cycle & Marketing StrategiesBy: RAHUL PAGARIA SHUBHAM SINGH AKASH JAISWAL

Introduction

One of the oldest brand of HUL & positioned as health & hygiene soap.Introduced in 1895 as a disinfectant soap especially when the country was severely affected by diseases like typhoid plague & yellow feverOnly soap brand to cross 100,000 tones of sales in a single year.The Brick Red Soap with its beautiful jingle have carried the message of health across the length and breadth of the country making it the largest selling soap brand in the world

Marketing mix

ProductLaunched as carbolic red disinfectant soapInitially meant only for health & hygieneStrong Brand Image.Moved on to freshness , beauty care, nature care & deodorant

PriceTargeted lower & middle income group mainly the rural consumersMoved on to high prices following the process of trading-up

PricingPrice Of Various Lifebuoy Products vis-a-vis its competitors

LifebuoyVariantsInter CompetitorsIntraCompetitorsLifebuoy(Total& Plus)Rs. 12 for 90 gmsGodrej.no.1 (Rs.8),Santoor (Rs.10)Breeze(Rs.8 for 100 gms.)Lifebuoy DeoFresh(Rs.10)Cinthol(Rs.13)Liril (Rs.16),Lux (Rs.13)Lifebuoy ActiveRs 12Dettol (Rs.16),Savlon (Rs.16)Rexona(Rs.13 for 100 gms.)Lifebuoy clear skin(Rs.13)Fair glow (Rs.10),No marks (Rs.19)Fair & Lovely(Rs.10),Dove(Rs.27),Pears (Rs.20).Lifebuoy NatureRs. 13 for 90 gms)Medimix (Rs.13),Chandrika (Rs.12)Hamam(Rs.13 for 100 gms.)

PlaceStrong distribution channel mainly targeted rural market. 2000 suppliers, 80 factories,45 C & F agents,4000 stockiest, 1m direct outlet, 6.3 m total outlet

PromotionInitially positioned as a male brand then moved on to family brandCSR works - health programs for promotion to make people aware about health & hygieneTandrusti ki raksha in 1992Koi darr nhi in 2002Yuvraj to endorse Lifebuoy

PositioningHow does the brand differentiate itself from its competition in the mind space of the consumerTotal = mothers with active kidsDeoFresh= young adultsNature = traditionalist mothersGold Care = sensitive skinLifebuoy is positioned as a complete family health soap. Concept- health for the entire familyTagline- Koi darr NahiAlso positioned as a value-for-money product, a soap that lasts longRecently, Lifebuoy also started using ensure cleanliness and hygiene for the entire community.Globally its positioned as a disinfectant.(a bar soap keeps u away from germs)

PackagingDistinct featuresBenchmark with CompetitionThe packaging of Life buoy has changed from that of hard cover wrapper specifically for men to soft cover for the family

In 2002 Lifebuoy moved from being a hard soap to a mild soap - delivering a significantly superior bathing experience The new soap painted its promise of health in softer, more versatile and responsible huesfor the entire family

Brand Evolution TimelineWent global in 1911Hand Sanitizer introducedLife Buoy DispenserMens Body washClear skin and acne removal

Product life cycleProduct life cycle is the stages over which a product develops & affects the sales and profits over time.

The five stages of each product lifecycle are: Product development Introduction GrowthMaturity Decline.

Summary of Characteristics, Objectives, & StrategiesIntroduction Stage of the PLC

1895 - 19301895 lifebuoy started its journey in India.Targeting Indian blue collared as effective disinfectant.Successfully accepted with promise that it kills germs and keeps body healthyIn 1911, went global.Marketing strategies Product strategy- Carbolic soap.Price and promotion strategy-Rapid penetration.Distribution strategy-Concentrated distribution strategy.

Summary of Characteristics, Objectives, & StrategiesGrowth Stage of the PLC

1931-1969By 1931 demand for lifebuoy increased.Launched officially & Captured huge market share.1963 the lifebuoy was most popular body soap in India.lifebuoy special launched as a line extention( failed due to unclear positioning).1967- ranked 1 among the top 5 private sector firms(turnover of 932.8 billion, 6 factories & 7000 employees) .Advertising efforts are limitedEnjoyed Monopoly.

Marketing strategies:Product strategy Introduction of new models.Price and promotion strategy Penetrating Pricing(rapid penetration)Distribution Strategy- increase in distribution coverage

Summary of Characteristics, Objectives, & StrategiesMaturity Stage of the PLC

1970-1996By 1970, sales grown but at lower rate, Witnessed squeeze in sales, records 69% as market share.Increased Competition (P&G, Godrej & Nirma Entered in market.In 1977, Nirmas used same marketing strategy and become 2nd largest seller.In 1980, TV ads used for promotion.In 1990, Soap industry witnessed rapid growth due to liberalisation.Lifebuoys monopoly was challenged by competitors.In 1992, Nirma Launch Nirma Bath affects lifebuoy.

Marketing Strategies:Product strategy Product Modification

Price & Promotion Strategy Penetration Pricing

Distribution Strategy Focus On Profitable Segment & focus on Important Channels Of Distribution

Summary of Characteristics, Objectives, & StrategiesDecline Stage of the PLC

1996 By 1996, market share fell to 45%.By 1999,Income level increased, consumer preferred to but expensive soap.By 2001, market share fell to 40 % and later 0n 30.65%(www.livemint.com)Low pricing results perception that lifebuoy is only for poorpeople and those who belong to the lower middle class thought by urban people.Rejuvenate its lifecycle

RejuvenateRepositioning the brand with several new product.Extend life cycle of the brand, it adopted a strategy of brand rejuvenation.Backed by High Advertisements Budgets, it injected new products targeting higher segment of Indian market.HLL launched lifebuoy Active.Positioning Shift from a male brand to a family Brand.

Several Variants of new soap

Lifebuoy Active(2002)Lifebuoy total (2004)Active fresh(2004)Nature(2004)Care(2004)deo fresh(2006)international plus(06)International gold(06)Lifebuoy Hand wash(06)Lifebuoy clear skin(06)Lifebuoy talcum powder(08) Lifebuoy Hand Sanitizer(09)Lifebuoy Body Wash. (10)

CSR worksIn 2001,HLL put 14 stalls at Maha kumbh Mela to spread awareness about health & hygiene.The L S C programme was initiated in 2002 as a rural health and hygiene initiative in India to create awareness about importance of washing hands with soap.It covered across 8 states, Covering 130 million people in 30,000 villages.Acc. To HLL, the campaign was not philanthropic activity, but a marketing programme with a social benefit.

Campaigns and promotional activities

Lifebuoy has launched save the children campaign.Lifebuoy conducts global hand washing day(guinese record)Lifebuoy launched the lifebuoy way of life in Mumbai.In 2003, sales grew up by 20% (under LSC area).In 2005, goodwill increased & sales grew by 10%.In 2006, Lifebuoy becomes 1st brand to have a special postal cover news & used Krrish for promotion.HUL holds 64% market share.

Limitations of PLCLike humans, products does not have a very predictable life so the concept of PLC is not well suited for forecasting of product sales.It yields a product oriented picture rather than a market oriented picture.PLC may become self fulfilling ,means if sales peak & then decline, managers may misinterpret it as decline phase & therefore cut the advertising budget and thus making a further decline.

THANK YOU

Any Questions??

Chapter 1 Page *Chapter 1 Page *Chapter 1 Page *Chapter 1 Page **