lifebouy-PLC

LifebuoyProduct life cycle & Marketing

Strategies

By: 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 fever

Only 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

Product

• Launched as carbolic red disinfectant soap

• Initially meant only for health & hygiene

• Strong Brand Image.• Moved on to freshness ,

beauty care, nature care & deodorant

Price• Targeted lower & middle

income group mainly the rural consumers

• Moved on to high prices following the process of trading-up

Pricing

LifebuoyVariants

Inter Competitors IntraCompetitors

Lifebuoy(Total& Plus)

Rs. 12 for 90 gms

Godrej.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 12

Dettol (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 Nature

Rs. 13 for 90 gms)

Medimix (Rs.13),Chandrika (Rs.12)

Hamam(Rs.13 for 100 gms.)

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

Place• Strong distribution

channel mainly targeted rural market.

• 2000 suppliers, 80 factories,45 C & F agents,4000 stockiest, 1m direct outlet, 6.3 m total outlet

Promotion

• Initially positioned as a male brand then moved on to family brand

• CSR works - health programs for promotion to make people aware about health & hygiene

• Tandrusti ki raksha in 1992• Koi darr nhi in 2002• Yuvraj to endorse Lifebuoy

PositioningHow does the brand differentiate itself from its competition in the mind space of the consumer•Total = mothers with active kids•DeoFresh= young adults•Nature = traditionalist mothers •Gold Care = sensitive skin

• Lifebuoy is positioned as a complete family health soap.

• Concept- health for the entire family• Tagline- “Koi darr Nahi”• Also positioned as a value-for-

money product, a soap that lasts long

• Recently, 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)

Packaging

•Distinct features•Benchmark with Competition

• The 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 hues—for the entire family

Brand Evolution Timeline

Went global in 1911

Hand Sanitizer introduced

Life Buoy Dispenser

Men’s Body wash

Clear skin and acne removal

Product life cycle

Product 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 • Growth• Maturity • Decline.

SalesSales

CostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

ProductProduct

LowLow

High cost per customerHigh cost per customer

NegativeNegative

Create product awareness and trialCreate product awareness and trial

Offer a basic productOffer a basic product

DistributionDistribution Build selective distributionBuild selective distribution

PromotionPromotion Heavy to entice product trialHeavy to entice product trial

Summary of Characteristics, Objectives, & Strategies

Introduction Stage of the PLC

1895 - 1930•1895 lifebuoy started its journey in India.•Targeting Indian blue collared as effective disinfectant.•Successfully accepted with promise that it kills germs and keeps body healthy•In 1911, went global.

Marketing strategies •Product strategy- Carbolic soap.•Price and promotion strategy-Rapid penetration.•Distribution strategy-Concentrated distribution strategy.

SalesSales

CostsCosts

ProfitsProfits


ProductProduct

PricePrice

Rapidly risingRapidly rising

Average cost per customerAverage cost per customer

RisingRising

Maximize market shareMaximize market share

Offer extension, service, warrantyOffer extension, service, warranty

Penetration strategyPenetration strategy

DistributionDistribution Build intensive distributionBuild intensive distribution

PromotionPromotion Reduce to take advantage of demandReduce to take advantage of demand


Growth 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 limited•Enjoyed Monopoly.

Marketing strategies:• Product strategy – Introduction of new

models.• Price and promotion strategy – Penetrating

Pricing(rapid penetration)• Distribution Strategy- increase in distribution

coverage

SalesSales

CostsCosts

ProfitsProfits


ProductProduct

PricePrice

PeakPeak

Low cost per customerLow cost per customer

HighHigh

Maximize profits while defending market shareMaximize profits while defending market share

Diversify brand and models Diversify brand and models

Match or best competitorsMatch or best competitors

DistributionDistribution Build more intensive distributionBuild more intensive distribution

PromotionPromotion Increase to encourage brand switchingIncrease to encourage brand switching


Maturity Stage of the PLC

1970-1996•By 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, Nirma’s 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.•Lifebuoy”s 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

SalesSales

CostsCosts

ProfitsProfits


ProductProduct

PricePrice

DecliningDeclining

Low cost per customerLow cost per customer

DecliningDeclining

Reduce expenditures and milk the brandReduce expenditures and milk the brand

Phase out weak itemsPhase out weak items

Cut priceCut price

DistributionDistribution Selective: phase out unprofitable outletsSelective: phase out unprofitable outlets

PromotionPromotion Reduce to minimum levelReduce to minimum level


Decline 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 poor people and

those who belong to the lower middle class thought by urban people.• Rejuvenate its lifecycle

Rejuvenate

• Repositioning 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 works• In 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 PLC

• Like 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…??

lifebouy-PLC

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