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Lifebuoy rejuvination

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  • Lifebouy

    1. 1. Lifebuoy Product life cycle & Marketing Strategies By: RAHUL PAGARIA SHUBHAM SINGH AKASH JAISWAL
    2. 2. 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
    3. 3. 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
    4. 4. Pricing Lifebuoy Variants Inter Competitors Intra Competitors Lifebuoy (Total& Plus) Rs. 12 for 90 gms (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 Active Rs 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
    5. 5. 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
    6. 6. Positioning How 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)
    7. 7. 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
    8. 8. Brand Evolution Timeline Went global in 1911 Hand Sanitizer introduced Life Buoy Dispenser Men’s Body wash Clear skin and acne removal
    9. 9. 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.
    10. 10. 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
    11. 11. 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.
    12. 12. SalesSales CostsCosts ProfitsProfits Marketing ObjectivesMarketing Objectives 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 Summary of Characteristics, Objectives, & Strategies Growth Stage of the PLC
    13. 13. 1931-1969 By 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.
    14. 14. Marketing strategies: • Product strategy – Introduction of new models. • Price and promotion strategy – Penetrating Pricing(rapid penetration) • Distribution Strategy- increase in distribution coverage
    15. 15. SalesSales CostsCosts ProfitsProfits Marketing ObjectivesMarketing Objectives ProductProduct PricePrice PeakPeak Low cost per customerLow cost per customer HighHigh Maximize profits while defending market share Maximize profits while defending market share Diversify brand and modelsDiversify 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 Summary of Characteristics, Objectives, & Strategies Maturity Stage of the PLC
    16. 16. 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.
    17. 17. Marketing Strategies: • Product strategy – Product Modification • Price & Promotion Strategy –Penetration Pricing • Distribution Strategy – Focus On Profitable Segment & focus on Important Channels Of Distribution
    18. 18. SalesSales CostsCosts ProfitsProfits Marketing ObjectivesMarketing Objectives 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 Summary of Characteristics, Objectives, & Strategies Decline Stage of the PLC
    19. 19. 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%( • 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
    20. 20. 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”.
    21. 21. 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)
    22. 22. 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.
    23. 23. 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.
    24. 24. 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.
    25. 25. THANK YOU Any Questions…??