CRITICAL SITUATION IN AN ORGANIZATION AND ITS MANAGERIAL SOLUTION

1. CRITICAL SITUATION IN AN
ORGANIZATIONAND IT’S MANAGERIAL
SOLUTION
NAME: FAIZAL AHMED
REGISTER NUMBER: RA1952001020011
SUBJECT: MANAGERIAL SKILLS
COURSE : MBA
SECTION : A

2. CONTENTS OF THE PRESENTATION
• INTRODUCTION
• THE JOURNEY OF LIFEBUOY
• THE PROBLEM
• CRITICISMS AGAINST LIFEBUOY
• THE SOLUTION

3. INTRODUCTION
• Lifebuoy is a brand of soap marketed by Unilever. Lifebuoy was
originally, and for much of its history, a carbolic
soap containing phenol (carbolic acid, a compound extracted from
coal tar). The soaps manufactured today under the Lifebuoy brand
do not contain phenol.
• Lifebuoy was introduced by Lever Brothers in 1895 in England.
Originally a carbolic soap containing phenol, different varieties
were later introduced without the medicinal carbolic smell, such as
the coral-coloured Lifebuoy during the late 1950s and Lifebuoy
Minty Refresher in 1966. Lifebuoy was one of the most popular
soaps in the United States from approximately 1923 to the mid-
‘50s,when perfumed soaps took over the market. It was the best
selling medicated/health soap in North America until roughly
1951..

4. • It was well known for its red and yellow packaging, red color and
octagonal shape
• Lifebuoy's popularity reached its peak between 1932 and 1948.
• In the mid/late 1960s it saw a popularity surge which would last
through 1973. This was caused by the introduction and success
of Lifebuoy White in the American market. After this decline, the
Lifebuoy brand was seen less and less in the American market. It
was pulled from American shelves starting in 2003 and was
completely phased out of the American market by 2006.
• Unilever released Lifebuoy Classic, a modern soap with retro
packaging and a medicated scent intended to be similar to that of
the 1950s product. It saw novelty success but was never embraced
as a staple product in the American home.

5. THE JOURNEY OF LIFEBUOY
• “When you go to a doctor, there are some very strict, disciplinarian
ones and there are some who make light of the illness. Lifebuoy is
the second kind of doctor”, says Amer Jaleel, NCD, Lowe Lintas.
• Lifebuoy, for long, has been associated with a big, red, chunky bar
of soap that keeps one healthy. The heritage brand, which has been
around for more than a 100 years now (the first container with
Lifebuoy soaps landed on Indian shores in 1895 at Bombay
Harbour), was once touted to be the soap that was everything male
and sporty. It has now become a family brand.
• One of the market leaders — Nielsen data for the last quarter pegs
Lifebuoy at 14.5% market share, a close second to Lux’s 14.6% —
the name of the brand came from the life-saving buoy thrown out
to people at sea to prevent them

7. THE PROBLEM
• A week after the US Food and Drug Administration (FDA) banned the use of
certain compounds in antibacterial hand and body wash products, India’s
Central Drug Standard Control Organization (CDSCO) is set to deliberate
whether their use in India poses a public health hazard that requires a closer
look, two CDSCO officials said on condition of anonymity.
• The FDA ruled on 2 September that manufacturers had failed to show the
efficacy of any of 19 active compounds that go into many over-the-counter
consumer antiseptic washing products. As a result, the FDA banned the use of
these 19 compounds, including triclosan and related triclocarban.
• As a result, Lifebuoy had a break and fall in its production and sales.
• “Consumers may think antibacterial washes are more effective at preventing
the spread of germs, but we have no scientific evidence that they are any
better than plain soap and water," said Janet Woodcock, director of the FDA’s
centre for drug evaluation and research. “In fact, some data suggests that
antibacterial ingredients may do more harm than good over the long term."

8. CRITICISMS AGAINST LIFEBUOY
• There are 3 kinds of Soap...
Bath Soap - For Bathing
Toilet Soap - Using after Toilet
Carbolic Soap - For Animals
• Lifebuoy is neither Bath nor Toilet Soap..
It's A Carbolic Soap..!!
• In America & Europe, Dogs & Donkeys Bath with it..!!
But, in India We, Humans, Bath with it..!!
• First Bath Soaps are Made, Then Toilet Soaps are made & After
that from the Waste Products, Carbolic Soaps are Produced..!!

10. • An HUL spokesperson said, “In 2015, we started replacing
triclosan and triclocarban in our Lifebuoy soap.
• We no longer manufacture antibacterial soaps and personal
wash products with triclosan.
• We will complete the phase-out of triclocarban across all
markets in 2017.
• None of the other compounds mentioned in the FDA rule are
used in Unilever antibacterial soap bars."
• Queries to the other companies named above had not elicited
responses by the time of going to press.

11. • While antibacterial products are an over $1 billion industry in the
US, the market size in India is fairly small.
• “The antibacterial liquid hand-wash market is a little over ₹ 500
crore in India and growing 15% annually. Any order by the
government banning certain compounds may not entail any
significant disruption in the market," said Rajat Wahi.
• They had taken the perfect step at the right time such that the
brand was saved and came into the market with a bang.
• This makes Lifebuoy still hold a competitive place in the market.