mso report

7/30/2019 mso report

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Index:

S.NoContentPage number

1Company profile- Dettol1

2Company profile- Lifebuoy2

3The 4Ps of marketing for Dettol3

3.1Product3

3.2Price3

3.3Place4

3.4Promotion4

4The 4Ps of marketing for lifebuoy5

4.1Product5

4.2Price5

4.3Place6

4.4Promotion6

5Table 1- year wise comparison of market shares of Dettol

and Lifebuoy7

6Comparative analysis of Dettol and Lifebuoy7

7Suggestions for Dettol8

8Suggestions for Lifebuoy8


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COMPANY PROFILE : DETTOLDettol Antiseptic Liquid Disinfectant is the name of commercial liquid and solidantiseptic products belonging to a household product line manufactured by ReckittBenckiser.

Reckitt Benckiser was introduced in India in 1933 with the brand Dettol. Dettol wasintroduced only as the antiseptic liquid. Around the end of 1940s, Dettol became alegacy brand with 85% of market share in the antiseptic liquid market. The brandtoday is present in various segments such as soaps, hand wash, shaving creamsand plasters.

Despite its first mover advantage, it did not become a household name from theword go. To break into the consumer space, the company launched an aggressiveadvertising campaign in 1960.

By 1970, 4.7 million Dettol bottles were sold and, over the next one decade, thebrand had penetrated into 40% of urban households in India, says Chander MohanSethi, chairman and managing director, Reckitt Benckiser India.

Dettols reign in the market, though, has not been unchallenged. When UK-basedconsumer products company ICI Plc. brought its flagship brand Savlon to India,recalls Sethi, Reckitt Benckiser realized how serious the competition wasandDettol went to consumers with even more forceful campaigns.

In the 2000s, the companys long-standing slogan, Strong enough to protect theones we love, changed to Dettol, be 100% sure. As a brand, Dettol has alwaysretained its standing on the anti-germ platform, although its portfolio has expandedto suit the lifestyle demands of consumers, says Suman Srivastava, chiefexecutive, Euro RSCG, the advertising agency for Dettol.

It was voted as the third most-trusted brand in an AC Nielsen ORG Marg survey lastyear. Reckitt Benckiser's flagship brand Dettol, still contributes to almost 40% of therevenue for Reckitt Benckiser.

Dettol is the leader in the antiseptic market with 85 per cent market share. Liquidhand wash created a new market and lords over 60 per cent of the market in thecategory, while the various Dettol soaps account for 18 per cent of the health soapdivision.

The legacy that the company looks to carry forward is, Dettol is believed in byeverybody, even doctors. That is the core deliverable that we wanted toemphasize."


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COMPANY PROFILE:LIFEBUOYLifebuoy is a product of Hindustan Unilever Ltd., India, which was earlier called theUnilever ltd. Lifebuoy is actually a brand which was invented globally before theterm 'global branding' itself was invented. It was invented in 1894 in UK as the royaldisinfectant soap by William Hesketh Lever.

In India Lever brothers introduced Lifebuoy in 1895 with the set up of offices forsales and marketing in Chennai, Mumbai, Kolkata and Karachi.

Consistent in Lifebuoy's 110+ year history has been its championing of healththrough hygiene. The brand's core promise of protection and a commitment tosupport life through unbeatable protection is at the heart of the brand name itself Lifebuoy, the guarantee of protection when you are threatened.While brands have managed to upgrade their image and evolve together with theirconsumers Lifebuoy is a great example, having moved from a carbolic, sweatyassociation to desirable health imagery there has been no example of a brand thathas moved to the top of the pole after residing at the bottom. The relaunch of thesoap in 2002, 2004 & again in 2006 have been turning points in its history.

In 2004, Lifebuoys product offering was revamped with contemporary packaging

and an upmarket look. While that went down well with existing users, new userswere still elusive; they continued to perceive the product as a cheap soap for poorpeople. That perception had to be changed without alienating the Lifebuoyloyalists. The objective for HUL was to launch a campaign that helped the soap shedits old-fashioned image and gain an entry into two million urban households.

Lifebuoy before the end of the first quarter of 2011 was the leader in soap market inIndia after which they lost the competition to Reckitt Benckiser's Dettol. Dettol isnow the market leader with 42% of the market share whereas lifebuoy has 41% ofthe market share in the same market.

The 4Ps of marketing for Dettol :Product:When we start talking about the products of Dettol, the first thing that strikes achord in our mind is that Dettol means secure and we are 100% sure aboutthat. Dettol entered the soap market with only one soap and that is the DettolOriginal. And in due course they have come up with a series of product range whichincludes the diversification of Dettol into 4 different soaps namely- Dettol original,Dettol skin care, Dettol cool and Dettol Fresh. Among these 4 brands Dettol cool is


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found to be the most sold soap in the market. And as usual and a sign of trust,Dettol soaps always come with a recommendation from IMA- Indian MedicalAssociation. This sign of the recommendation of IMA makes Dettol more secure andsafer. And the diversification of dettol's products into the four categories, original,skin care, cool and fresh have in-fact, increased the customer base of the companybecause each one of its product is quality-wise different and caters the needs of

different people in a much diversified country like India where preferences differwidely. As far as the diversification and quality of products is concerned Dettol hasreally done a good job so far in the market. And when brand image is concerned, aswe all know, Dettol is a very old brand in India and is always considered as one ofthe most trusted brands. They are the 3rd most trusted brand in India.

Price:

Pricing is one area where Dettol has been consistent. All their brand products had avery good premium pricing strategy, which led them into fierce price wars withother able competitors like lifebuoy and savlon and others. Actually the heavycompetition in the sector forced Dettol to reduce their prices. Now almost they areon the same page with the other competitors' pricing. And if the market share inthis industry should be studied, itll be impossible to miss out the influence ofpricing in market capitalization. FMCG market is generally a very price sensitivemarket and the effects of increase or decrease in pricing will directly affect thepresence of a firm in the market.

Place:

Place in marketing refers to the market and the market conditions. As far as Dettolis considered, it has a very strong influence in the market. In the initial days thetarget customers of Dettol were only the people who require antiseptic soap as anecessity. Later on they developed themselves into a company who is ready todeliver products to almost all range of customers in the industry itself. Thediversification of products helped them in increasing their customer base heavily.And it has beenobserved that the sale of Dettol is kind of dependent on market conditions. Say,when there is a change in weather, in rainy and winter seasons, people start buyingmore of Dettol products starting from the antiseptic liquid to the soaps like Dettoloriginal, and in summers the sale of Dettol products like Dettol cool and fresh hasbeen observed increasing. The fact is that Dettol has diversified in such a way thatthere is a need for their products in different varying market conditions. Whenspeaking about the market conditions, the influence of economics has to be takeninto consideration. Since Dettol is

safely into FMCG sector, the effect of economy on the product is comparatively less.

Promotion:

Promotion is a marketing term which refers to advertising and endorsement of theproduct. Dettol's advertisements have been always emphasizing only on cleanlinessand safety. And the tag line of Dettol is something which every person who hasseen TV will recognize- Be 100% sure. And all the Dettol ads released so far havenever been caught in slandering which steps on other brands to endorse their own


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brand. And morover, the Dettol initiatives like Mother's day(skincare), Each day is aglobal handwash day have captured the attention of viewers and customers andhave also ensured the customers that Dettol is something which everybody cantrust at any time. And these promotions also held up to the CSR activities of the firmwhich increased the trust level. As far as we have studied the case, Dettol has neverbeen caught for malicious or inexplicit content in promotion and advertisements.

The 4Ps of marketing for Lifebuoy:

Product:

The products of lifebuoy have not been much varied. Generally when the product isto be studied in terms of marketing, we will be considering a few parameters like,variety(diversification), quality and design. As already stated lifebuoy has neverintended itself towards diversification of products. But, yes, they have changedthemselves from being just a producer of carbolic soaps to producer of disinfectantsoaps and normal bath soaps. The success story of lifebuoy is in having moved froma carbolic, sweaty association to desirable health imagery. And when we discuss

about the quality of lifebuoy, it stands as the soap with most durability in India.Sometimes this quality of lifebuoy has also led to funny comments, yet it continuesto be the same. Long lasting life of the soap itself is USP for the brand. And comingto the next parameter in product category for lifebuoy, design, the design of theearlier bars ofthe royal disinfectant soap had been carried over for years by the company. The redcolor that really marked the brand name went under changes in years. The lifebuoywhich is present in today's market is sleek, sexy, compact, precise and mostimportantly doesnt have that traditional 'macho' kind of look. And generally lifebouystill remains as one of the most popular soap brand in India.

Price:

Regarding pricing, lifebuoy has been in the market for long because of its pricingstrategy one can say. When all others had their own pricing strategy, it waslifebuoy's strategy that controlled the price of similar products in the market. Andmore over, only because of their pricing(durability) they established themselves asa king of soaps in rural markets. Lifebuoy has been the price setter for lower endproductstargetted towards the rural market. And this low pricing have also decreased thecustomer base in urban areas, just because people in urban areas are getting aperception that lifebuoy is only for poor people and those who belong to the lowermiddle class. And this is also the reason why they have lost the market to Dettol.

Place:

Place in marketing refers to the market and the market conditions. As far aslifebuoy is considered, it doesnt have a very strong influence in the market. In the


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initial days the target customers of lifebuoy were only the people who require cost-efficiency soap as a necessity. Later on they developed themselves into a companywho is ready to deliver products to almost all range of customers in the industryitself. The diversification of products helped them in increasing their customer baseheavily even though they have not diversified much. The market is the decidingfactor and lifebuoy has complied with it and has set pricing its strategy. The fact is

that Dettol has diversified in such a way that there is a need for their products indifferent varying market conditions but lifebuoy is not that much adoptable tomarket conditions but lifebuoy has been constantly performing even in changingmarket conditons. When speaking about the market conditions, the influence ofeconomics has to be taken intoconsideration. Since Dettol is safely into FMCG sector, the effect of economy on theproduct is comparatively less.

Promotion:

Lifebuoy as a company, in early stages when they had a very huge market sharewere not concentrating in advertisements and promotions even though there were

a few. And later on when they started feeling the heat of the competition, theystarted creating innovative ads and TV commercials. But if u follow the ads oflifebuoy you can easily say that they are little bit bullish. And because of this oncein 2008 they were fined for telecasting an ad which directly critisized the use oftheir most potentialcompetitor- Dettol. And they ended up paying some amount to the court as well asDettol as a compensation. And one more important thing about lifebuoy is that theywere the 1st to start this- global handwash day ad campaign but however theyfinally lost the game to Dettol in this as Dettol launched each day is a handwashday concept. And lifebuoy has been in CSR activities such as supplying bathingbars in time of natural crises and calamities and they are also doing some goodeducational trust activities which has increased the trust value of the brand and

lifebuoy has been very inconsistent in maintaining a tag line or punch line for theirbrand.

2001-02 32.00% 30.65%2002-03 31.00% 29.00%2003-04 34.00% 36.00%2004-05 34.00% 36.70%2005-06 35.31% 39.00%2006-07 33.74% 35.00%2007-08 35.98% 39..61%2008-09 38.44% 40.00%2009-10 39.99% 40.10%2010-11 38.71% 40.09%2011-Q1 42.00% 39.00%


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Comparative analysis of Dettol on lifebuoy:DettolLifebuoy1) Reckitt Benckiser product1)HUL product2) Has been a prominent brand in themarket for more than 50 years2) Has been a prominent brand in the

market for more than 110 years3)introduced as a antiseptic soap3) introduced as a disinfectant soap4) high brand value and brandrecognition4) high brand value and recognition5) has a wide variety of products5) not that much diversified as that ofDettol6) started with premium pricing andcame down6) price setter in FMCG market forsoaps7) has a very big market share in urbanmarkets7) king of rural market8) recommended by IMA8) no such recognitions

9)design is sleek and nice9)modified design to fit in thecompetition10) sales of different products dependupon market conditions.10) not that much market sensitive11) less durable11) more durable12) less aggression in advertisements12) aggressive advertisements andpromotions13)clean ad strategies13) fined for delivering slander.14)good in CSR activities14) good in CSR activities15) india's 3rdmost trusted brand15) no such claims but has a huge trust

in rural areas16) be 100% sure- is the tagline16) has been using many tag lines.

Suggestions for Dettol :1)Should concentrate and increase advertising.2)Can consider price reduction3)Can consider the introduction of smaller size packs4)Should focus more on rural markets5)Packaging can be changed and made more attractive..6)can consider giving free articles along with the products7)Still can increase CSR activities since it is the one of the most trustedbrands in India.

Suggestions for lifebuoy:1)should strongly consider diversification of products.2)Can create some more products for high-end customers3)should focus on the design of the soap and color4)packaging can be improved.5)Should instill a thought among customers that it is not only a brand forrural markets


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6)should invest a lot more in advertising and targeting the youth7)advertisements should not be the 'bully' kind of advertisements.8)Can increase and maintain its CSR activities.

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