Lifebuoy rejuvination

1. Lifebuoy
Product life cycle & Marketing
Strategies
By:
RAHUL PAGARIA
SHUBHAM SINGH
AKASH JAISWAL

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. 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. Pricing
Lifebuoy
Variants
Inter Competitors Intra
Competitors
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 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. 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. 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. 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. Brand Evolution Timeline
Went
global
in 1911
Hand
Sanitizer
introduced
Life Buoy
Dispenser
Men’s Body
wash
Clear skin
and acne
removal

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.

11. 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

12. 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.

13. 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

14. 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.

15. Marketing strategies:
• Product strategy – Introduction of new
models.
• Price and promotion strategy – Penetrating
Pricing(rapid penetration)
• Distribution Strategy- increase in distribution
coverage

16. 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

17. 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.

18. Marketing Strategies:
• Product strategy – Product Modification
• Price & Promotion Strategy –Penetration
Pricing
• Distribution Strategy – Focus On Profitable
Segment & focus on Important Channels Of
Distribution

19. 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

20. 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

21. 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”.

22. 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)

23. 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.

24. 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.

25. 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.

28. THANK YOU
Any Questions…??