Savlon Case Study Challenge

1. Case Solution
Campus: NMIMS, Mumbai
Team: Grey Matter
1. Ashwin Jain
Mobile: 9971063087
Email Id: ashwin.jain15@nmims.edu.in
SAP Id: 80101150236
2. Mayank Agrawal
Mobile: 9930840608
Email Id: mayank.agrawal15@nmims.edu.in
SAP Id: 8010150037
3. Harsh Tewari
Mobile: 7829545405
Email: harsh.tewari15@nmims.edu.in
SAP Id: 80101150574
4. Nitesh Kr Pandey
Mobile: 9930903037
Email Id: niteshkr.pandey15@nmims.edu.in
SAP Id: 80101150420

2. Executive Summary
Approach
 Case analysis, Primary research & Industry analysis was effective in providing a theme to our solution –
“Change Is Inevitable”.
 This is an umbrella theme for each of our marketing campaigns, product innovations & channel planning.
 Savlon will act as a facilitator of change for the family through its products – From new house (designer
dispensers), parenthood (mother care campaign), better hygiene facilities (new products) to change in
lifestyle (soaps to liquid hand wash).
 We have tried to present a holistic solution with elements of marketing, product innovations, distribution &
revenue projections.
Research & Analysis
 Primary Research was conducted in the focus group of urban educated nuclear families through our former
colleagues and relatives.
 Case data was analyzed extensively to come up with 19 target cities and customer STP.
Shift in positioning
 Focus should be on product trials by the consumer through various Out Of Home campaigns
 Influencing considerations of non-users is less expensive & more effective rather than a head on collision
with Dettol
 Association with social awareness causes can improve the reputation of the brand
 Targeting the whole family through our communication
Innovation led growth
 Packaging Innovations : Uniform dispensation through
changes in dispenser mechanism, More appealing theme
based packaging
 Product Line Extension : Diversifying into hand wash variants such as foam based, instant hand sanitizers &
Shower gels
 Brand Extension : Foray into electronic cleansing kits to establish Savlon in a new category
 Subscription based model can be followed to increase levels of customer retention and integration for other
ITC FMCG products can also be achieved through this model
Touch point Journey
0 20000 40000 60000 80000
HH Handwash
HH Non Uses

3. Key Insights & STP
Insights from the given case data
• HH Size-> up to 02: Propensity to switch from
soap to hand wash is highest in HH Size --> 0-4
• HH Size-> 3-4: As per trend, the median Indian
household size will lie b/w 3-4 in coming years
• HHs with Children up to 6 years: Generally,
affinity for FMCG products is formed when a
new household is set up. Lifetime Value of this
section of household is higher as it will go
through the entire life cycle all over again.
• HW of age-> up to 34 years: Maximum non
users belong to these households
Insights from Primary research
• Wastage of liquid hand wash due to inefficient
dispensing
• Liquid hand wash is consumed faster
• Hand wash dispensers at home do not have any
decorative element and do not raise the beauty of
the wash basin
• Fathers have an important role in switching from
soap to a liquid hand wash (in up-gradation)
• Savlon has low visibility in retail shelf space
• Recurring refilling is a hassle for customers
Focus Cities
 TCL between 10 to 40L: Coimbatore, Madurai, Tiruchirappalli, Vishakhapatnam, Vijaywada, Hubballi,
Mysore, Lucknow, Kanpur, Agra, Ghaziabad, Meerut, Vadodara, Rajkot
 TCL above 40L: Chennai, Hyderabad, Bengaluru, Ahmedabad, Surat

4. Marketing Campaigns – To create touch points
Marketing Communication is based on our umbrella theme – ‘Change is Inevitable’. Our focus is to
create touch-points for each member of the family.
Afterglow: Use of UV Germ-o-meters, to drive awareness about the germ fighting ability of Savlon
Objective To establish conviction among prospective customers for the germ fighting capability of Savlon
Audience Urban families, corporate employees,
Vehicle Wall mounted UV Germ-o-meter paired with custom hand wash dispensing unit in washroom
Channel Employee heavy offices, movie theatres & Indian restaurants(which do not provide finger bowl)
Workshops: Organize sanitation workshops in schools to facilitate product trial & brand awareness
Objective Reaching the decision maker through minor influencers (who are of primary concern to them)
Audience School going children/ young athletes
Vehicle Sanitation workshops, rewarding a sanitation/first aid kit (with Savlon products) on completion
Channel Schools, Amusement parks, sports clubs, BTL activities
Mothercare: Partnering with hospitals to deliver Savlon branded baby care kits to expecting mothers
Objective Creating a touch point for expecting mothers by gifting them motherhood kit
Audience Expecting women
Vehicle Gifting sanitizing kit/baby care kit, offering subscription pack,
Channel Hospitals
Home decor: Creating aesthetically designed hand wash dispensers to be a part of home decor
Objective Boosting volumes through sales of hand wash refills
Audience Urban educated married women who are concerned of their social status
Vehicle Aesthetically designed hand wash dispensers with minimalistic Savlon branding
Channel E-commerce, Home décor stores
Savlon Wall: Promoting community led sanitation programs to combat diarrhea in urban slums
Objective Gaining attention of prospective customers
Audience Families / newly married couples
Vehicle Partnership with NGOs and schools
Channel Painting city walls through community led diarrhea awareness program
TV Campaigns
Insights  Customers perceive liquid hand wash as a wasteful substitute of regular soap
 Besides mother, father is a major influencer when making upgrades to lifestyle
Objective  Communicating the innovative dispenser design ensuring a guarantee no. of washes
 Enlightening father’s role in enabling family to venture into new activities

5. Recurring revenue based Subscription Model
 Subscription model for Savlon brand (hand wash, shower gel, sanitizer etc.) to ensure repeat purchases
 Customers will not have to pay the entire fee upfront, but only on receipt of product. Instead of offering
discounts at single purchases, we recommend offering discounts at a written down price (Eg: 1st
SKU @
INR 100, 2nd
SKU @ INR 97, 3rd
SKU @ 95, and so on). Subscription period – Maximum 1 year.
 The motivation behind accepting the delivery would be to be able to purchase the product at a lower price
every time. The rationale behind the model is derived from scientific research:
1. Whether by intention or effect: Desired behavior, can be achieved by slightly different means than
simply communicating the target customer what you want them to do.
2. Empty Bucket: People going through big changes are under a lot of stress, they’re trying to save mental
energy in every way possible, and prevent an information overload.
3. Transition from Product metrics to Relationship metrics:
Pay-and-leave transactions Forward-looking-transactions
Units, margins & inventory Renewals, upsells & churns
Timeline – Integrated Marketing Communication

6. Product Innovation
Packaging Sanitizer Shower Gel Herbal Face Wipes E-cleaning kits
Packaging innovation (pro consumer)
Description Objective Rationale Feasibility Communication
A transparent bottle
with uniform round
base
To help customer identify
the need to buy a refill &
stop the wobbliness of the
existing dispenser
Consumer insight –
Time to refill is not
known & the dispenser
is shaky when kept at
the basin
Savlon has already
come up with
transparent dispensers
in Bangladesh
Included in every
TVC campaign
and at the BTL
activities
Redesigning the
dispenser
mechanism to
ensure uniform
dispense
To reduce wastage for the
consumer & spreading the
correct way to use hand
wash
Consumer insight –
Liquid hand wash is
wasted due to inefficient
dispensing
Savlon needs to tweak
the dispensing
mechanism so that the
push is limited to a
level
Included as a
snippet in TVC &
information
provided through
physical kiosks
Product line extension
Product Objective Rationale Strategic Alignment Communication
Savlon Instant
Hand Sanitizer
in personal
care segment
To provide instant
germ protection
on the go
Competitive analysis shows
that Dettol and Lifebuoy have
featured products in this
segment
Savlon as a brand to
strengthen its position as
an anti-germ brand
Leveraging the ITC
supply chain to gain
an effective retail
shelf space
Savlon body
wash &
shower gel
Entry into the
lucrative shower
segment
Indian bath & shower market is
growing at a CAGR of 10.44%
& is the most lucrative in
personal care category
Savlon to diversify its
personal care portfolio
Targeted at urban
families from the
selected target group
Foam/Scrub
based/herbal
hand wash &
face wipes
To offer premium
range of products
Insight from primary research
– early innovators tend to seek
further up-gradation to enhance
their lifestyle
Savlon to strengthen its
brand equity & command
higher margins through
premium products
Included in the TVC
& information
provided through the
physical kiosk route
Brand Extension
Product Objective Rationale Strategic Alignment Communication
Savlon Anti germ
mobile & laptop
cleaning kit
Produce low cost-high
quality electronics
cleaning kits
Low competition in this
segment with less
penetration in the market
Diversify product
offerings & taking the
first movers advantage
High voltage digital
campaign & selling
through E-commerce

7. Financial Projections
in 000s
Months 0 1 2 3 4 5 6 7 8 9 10 11 12
AfterGlow 4,167 4,167 4,167 4,167 4,167 4,167
MotherCare 27,400 27,400 27,400 27,400
WorkShop 5,050 5,050 5,050 5,050
TVC 16,800 16,800 16,800 16,800 16,800 16,800 16,800 16,800
Total Cost 16,800 44,200 48,367 48,367 36,617 9,217 9,217 9,217 16,800 16,800 16,800 16,800
Revenue
month-on-
month 90,000 21,840 57,460 62,877 62,877 47,602 11,982 11,982 11,982 21,840 21,840 21,840 21,840
Revenue 90,000 111,840 169,300 232,177 295,053 342,655 354,637 366,618 378,600 400,440 422,280 444,120 465,960
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Brand strategy for future
 Co-Branding: Leveraging the popularity of cartoon series such as Chota Bheem to initiate product
placement and co-branded merchandising. In addition to product placement, innovative content creation
such as a digital comic series with Savlon’s mascot – GermFighter as the central character to create virality
for the brand.
 Rural Market Positioning: Creating awareness in the
minds of rural consumers regarding personal hygiene &
hand washing habits through the Tippy Taps program.
A PPN (Public-Private-NGO) initiative installing low
cost tippy taps in schools, hospitals & community
centers replicating the success achieved in African
countries in fighting diarrhea. Leveraging the E-choupal
campaign’s reach to create a brand recall in rural India.
 Don’t sell to them, Teach them: The idea is to arrange a 3-way call among ITC IVR facility, migrated
person(rural to urban) and villagers in an enclosed place called “ITC Aangan”. The content of the call shall
be related to hygiene & sanitation practices. The call will be managed by ITC IVR and will last for 15 min.
During these 15 min 2 ad slots of 30 second each shall be transmitted to the villagers highlighting the
Savlon brands.
0
1,00,000
2,00,000
3,00,000
4,00,000
5,00,000
0 1 2 3 4 5 6 7 8 9 10 11 12
Month on month revenue
Assumptions
1. Market share of Savlon hand wash is
assumed to be 2% and current annual sales of
INR 9 Cr.
2. ROI calculations for the marketing
expenditure is taken as 30%. Source: Long
Term Profitability by Alex Biel – Warc.com
3. Costs taken to calculate marketing
expenditure are in line with industry standards.