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HUL Market Strategies For Life Buoy Soap
HUL Market Strategies For Life Buoy Soap
A work is never a work of an individual. I owe a sense of gratitude to the intelligence and cooperation of those people who had been so easy to let me understand what I needed from
time to time for completion of this exclusive project.
I express my sincere thanks to all Faculties members and Students of ASTHA SCHOOL OF
MANAGEMENT for their generous help in various ways for the completion of this
project in time.
Last but not the least I would like to thank to God for his blessing, without him I could not
have completed the project and thanks to them who are internally and externally involved in
this project.
Cccccccccc ccccccccc
DECLARTION
I hiseby declare that the project entitled MARKET STRATEGIES OF HUL FOR
LIFEBUOY is of my own and it is only for academic purpose and has not been submitted to
any othis University or Institution before. I have submitted this dissertation report for the
partial fulfilment of MASTER OF BUSINESS ADMINISTRATION [2008 2010] in ASTHA
SCHOOL OF MANAGEMENT, BHUBANESWAR under BIJU PATTNAIK UNIVERSITY OF
TECHNOLOGY, ORISSA.
____________________
Signature
Name: ccccccc ccccccccccc
Date:
Mr. zzzzzzzzzzzzzz
(Faculty of Marketing, )
PREFACE
Loyalty towards the company, to know the market strategies of HUL for their
products..
In the coming pages an attempt has been made to present a comprehensive report
concerning different aspects of Market.ing Strategies.
I have tried to put my best effort to complete this project work on the basis of skill
that I have achieved during the last one year study in the institute.
I have tried to put my maximum effort to get the accurate statistical data. However I would
appreciate if any mistakes are brought to my by the reader.
TABLE OF CONTENTS
TABLE OF CONTENTS.....................................................................................................................5
CHAPTER 1...................................................................................................................................9
INTRODUCTION TO THE STUDY...........................................................................................9
INTRODUCTION:..........................................................................................................................10
1.2 OBJECTIVE OF THE STUDY:.................................................................................................11
1.3 METHODOLOGY OF THIS REPORT:....................................................................................11
CHAPTER 2.................................................................................................................................12
THE INDIAN SOAP INDUSTRY..............................................................................................12
2.1 INTRODUCTION:....................................................................................................................13
2.2 INDUSTRY ANALYSIS:..........................................................................................................14
2.3 MAJOR PLAYERS:..................................................................................................................15
CHAPTER 3.................................................................................................................................18
AN OVERVIEW OF......................................................................................................................18
HINDUSTAN UNILEVER LTD..................................................................................................18
3.1 INTRODUCTION:....................................................................................................................20
3.2 HISTORY:.................................................................................................................................21
3.3 ORGANISATION STRUCTURE:.............................................................................................24
3.4 PRODUCT PORTFOLIO:.........................................................................................................25
3.4.1 FOOD BRANDS:...............................................................................................................25
3.4.2 HOME CARE BRANDS:...................................................................................................26
3.5 SWOT ANALYSIS OF HUL:....................................................................................................31
CHAPTER 4.................................................................................................................................32
PRODUCT INFORMANTION...................................................................................................32
4.1 INTRODUCTION:....................................................................................................................34
4.2 HISTORY:.................................................................................................................................34
4.3 EVOLUTION AND CHANGES:..............................................................................................35
4.4 OBJECTIVES:...........................................................................................................................36
4.5 INGREDIENTS.........................................................................................................................36
4.6 HYGIENE EDUCATION AND DISASTER RELIEF:.............................................................37
4.7 LIFEBUOY PORTFOLIO:.......................................................................................................38
CHAPTER 5.................................................................................................................................40
MARKET STRATEGIES FOR LIFEBUOY.............................................................................40
5.1 INTRODUCTION:....................................................................................................................41
5.2 LIFEBUOYS MARKET SEGMENTATION AND TARGETING:..........................................42
5.3 LIFEBUOYS REPOSITIONING STRATEGY:.......................................................................42
5.4 REPOSITIONING CAMPAIGN:..............................................................................................42
5.5 MARKET STRATEGIES:.........................................................................................................43
5.5.1 MARKET SCOPE STRATEGY:........................................................................................43
5.5.2 MARKET GEOGRAPHIC STRATEGY:...........................................................................44
5.5.3 MARKET ENTRY STRATEGY:........................................................................................45
5.5.4 MARKET COMMITMENT STRATEGY:.........................................................................45
5.6 STRATEGIES WITH RESPECT TO 4PS:...............................................................................46
5.6.1 PRODUCT:.........................................................................................................................46
5.6.1.1 PRODUCT STRATEGIES:.............................................................................................47
5.6.2 PRICING STRATEGIES:..................................................................................................49
5.6.3.PROMOTIONAL STRATEGIES:......................................................................................50
5.6.4 DISTRIBUTION STRATEGIES:.......................................................................................51
l producer or supplier...................................................................................................................51
6
CHAPTER 6.................................................................................................................................56
CONCLUSION & SUGGESTIONS..........................................................................................56
BIBLIOGRAPHY...............................................................................................................................60
CHAPTER 1
INTRODUCTION TO THE
STUDY
INTRODUCTION:
The project undertaken is on MARKETING STRATEGY OF UNILEVER FOR
LIFEBUOY. It describes about the Marketing strategy using by HUL for the success
of both product and company.
Goals indicate what a business unit wants to achieve; Strategy is a action plan for
getting the goals. Every business must be design a strategy for achieving its goals,
consisting of a marketing strategy, and a compatible technology strategy and
sourcing strategy.
Marketing strategy is a process that can allow an organization to concentrate its
limited resources on the greatest opportunities to increase sales and achieve a
8
CHAPTER 2
10
2.1 INTRODUCTION:
The origins of personal cleanliness date back to prehistoric times. Since water
is essential for life, the earliest people lived near water and knew something about its
cleansing properties - at least that it rinsed mud off their hands.
A soap-like material found in clay cylinders during the excavation of ancient
Babylon is evidence that soap making was known as early as 2800 B.C. Inscriptions
on the cylinders say that fats were boiled with ashes, which is a method of making
soap, but do not refer to the purpose of the "soap." Such materials were later used
as hair styling aids.
Soap got its name, according to an ancient Roman legend, from Mount Sapo,
where animals were sacrificed. Rain washed a mixture of melted animal fat, or
tallow, and wood ashes down into the clay soil along the Tiber River. Women found
that this clay mixture made their wash cleaner with much less effort.
11
12
have a market volume of about 80,000 tonnes. This translates into a share of about
14 to 15%.
Soaps form the largest pie of the FMCG Market with bathing & toilet soaps
accounting for around 30% of the soap market, by value. Currently, the soap industry
is divided into three segments namely Premium, Popular and Economy/ Sub popular.
To fight competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer
Products Ltd (GCPL) and Wipro Consumer Care & Lighting are now drawing up
fresh game plans. And the accent is clearly on innovation to gain mind share as well
as market share in this overcrowded category.
13
Wipro
In the Indian market, Wipro is a leader in providing IT solutions and services for the
corporate segment in India. Wipro also has a profitable presence in niche market
segments of infrastructure engineering, and consumer products & lighting.Wipro has
made a large acquisition in the Consumer Care business. The presence of Wipro in
the toilet soap industry can be seen through their brands such as SANTOOR and
CHANDRIKA. With industry leading organic growth rates and the acquisition,
Consumer care business has reached a Revenue run rate in excess of $100 million
per quarter.
has increased its installed capacity of Soaps & Detergents and Toilet Preparations
etc by 36500 Tonnes and 263 Tonnes respectively. With this expansion the total
installed capacity of Soaps & Detergents and Toilet Preparations etc has increased
to 108500 Tonnes and 5875 Tonnes respectively.
Nirma
Incorporated as a private limited company, Nirma was converted into a deemed
public company and then to a public limited one in Nov.'93. Nirma has a leadership
presence in Detergents, Soaps and Personal Care Products. To have a greater
control on the quality and price of its raw materials, Nirma undertook backward
integration into manufacture of Industrial Products like Soda Ash, Linear Alkyl
Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric
Acid. During 1996-97, Nilnita Chemicals, Nirma Detergents, Nirma Soaps and
Detergents, and Shiva Soaps and Detergents were amalgamated with the company.
The company created 'Nirma Consumer Care Ltd.' - a wholly owned subsidiary on
22nd Aug.'97, which is the sole licensee of the brand name 'Nirma' within India.
Nirma enjoys a share of 6.74% in soaps.
ITC
ITC, the countrys largest cigarette maker, entered the segment last year and has
made a strong headway in a short time. According to AC Nielsen, its share has
grown to 1.75% in just five months despite the fact that many of its brands such as
Superia, Fiama Di Wills and Vivel are currently sold in only six states.
15
CHAPTER 3
AN OVERVIEW OF
HINDUSTAN UNILEVER LTD.
16
MISSION
To addvitality to life.
Meet everyday needs
for nutrition with brands
that help people feel good, look
good and get more out of life.
17
3.1 INTRODUCTION:
Hindustan Unilever Limited (HUL), formerly Hindustan Lever Limited (it was
renamed
in
late
June
2007
as
HUL),
is
India's
largest
Fast
Moving
Consumer Goods (FMCG) company, touching the lives of two out of three
Indians with over 20 distinct categories in Home & Personal Care Products
and Foods & Beverages. These products endow the company with a scale
of combined volumes of about 4 million tonnes and sales of nearly Rs.
13718 crores.
HUL is also one of the country's largest exporters; it has been recognized
as a Golden Super Star Trading House by the Government of India.
The mission that inspires HUL's over 15,000 employees, including over 1,300
managers, is to "add vitality to life." HUL meets everyday needs for nutrition,
hygiene, and personal care with brands that help people feel good, look
good and get more out of life. It is a mission HUL shares with its parent
company, Unilever, which holds 52.10% of the equity. The rest of the
shareholding
is
distributed
among
360,675
individual
shareholders
and
financial institutions.
HUL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely,
Pond's, Sunsilk, Clinic, Pepsodent, Closeup, Lakme, Brooke Bond, Kissan,
KnorrAnnapurna, Kwality Wall's are household names across the country
and span many categories soaps, detergents, personal products, tea, coffee,
branded
staples,
ice
cream
and
culinary
products.
These products
are
manufactured over 40 factories across India. The operations involve over 2,000
suppliers and associates. HUL's distribution network comprises about 4,000
redistribution stockiest, covering 6.3 million retail outlets reaching the entire
urban population, and about 250 million rural consumers.
18
3.2 HISTORY:
Unilever was created in 1930 by the amalgamation of the operations of British soap
maker Lever Brothers and Dutch margarine producer Margarine Unie, a merger as
palm oil was a major raw material for both margarines and soaps and could be
imported more efficiently in larger quantities. In the late 19th century the businesses
that would later become Unilever HUL among the most philanthropic of their time.
They set up projects to improve the lot of their workers and created products with a
positive social impact, making hygiene and personal care commonplace and
improving nutrition through adding vitamins to foods that HUL already daily staples.
Today, Unilever still believes that success means acting with 'the highest standards
of corporate behavior towards our employees, consumers and the societies and
world in which HUL live'. Over the years HUL've launched or participated in an evergrowing range of initiatives to source sustainable supplies of raw materials, protect
environments, support local communities and much more.
Through this timeline you'll see how our brand portfolio has evolved. At the beginning
of the 21st century, our Path to Growth strategy focused us on global high-potential
brands and our Vitality mission is taking us into a new phase of development. More
than ever, our brands are helping people 'feel good, look good and get more out of
life' a sentiment close to Lord Leverhulme's heart over a hundred years ago.
In 19th century Although Unilever wasn't formed until 1930, the companies that
joined forces to create the business HUL know today HUL already HUL established
before the start of the 20th century.
19
1900s Unilever's founding companies produced products made of oils and fats,
principally soap and margarine. At the beginning of the 20th century their expansion
nearly outstrips the supply of raw materials.
1910s Tough economic conditions and the First World War make trading difficult for
everyone, so many businesses form trade associations to protect their shared
interests.
1930s Unilever's first decade is no easy ride: it starts with the Great Depression and
ends with the Second World War. But while the business rationalizes operations, it
also continues to diversify.
1940s Unilever's operations around the world begin to fragment, but the business
continues to expand further into the foods market and increase investment in
research and development.
1950s Business booms as new technology and the European Economic Community
lead to rising standards of living in the HUL, while new markets open up in emerging
economies around the globe.
1960s As the world economy expands so does Unilever and it sets about developing
new products, entering new markets and running a highly ambitious acquisition
programmed.
20
1970s Hard economic conditions and high inflation make the '70s a tough time for
everyone, but things are particularly difficult in the Fast Moving Consumer Goods
(FMCG) sector as the big retailers start to flex their muscles.
1980s Unilever is now one of the world's biggest companies, but takes the decision
to focus its portfolio, and rationalize its businesses to focus on core products and
brands.
1990s The business expands into Central and Eastern Europe and further sharpens
its focus on HUL product categories, leading to the sale or withdrawal of two-thirds of
its brands.
The 21st century The decade starts with the launch of Path to Growth, a five-year
strategic plan, and in 2004 further sharpens its focus on the needs of 21st centuryconsumers with its Vitality mission.
21
22
UNILEVERS BRANDS
Food Brands
Home care brands
Personal care brands
Nutrition
Health, hygiene & beauty
3.4.1 FOOD BRANDS:
Unilever is one of the world's leading food companies. Our passion for understanding
what people want and need from their food - and what they love about it - makes our
brands.
Kwality Wall's:
Kwality Walls, the brand with a big heart, offers a range of delightful
frozen desserts that bring smiles to the faces of millions of Indians
kids, teens and adults.
Lipton:
Lipton Yellow Label is a premium, full-bodied tea, made out of the
finest teas, perfect for the healthy Indian.
Kissan:
23
Kissan acts as a catalyst, easing stressful moments at the dining table. With Kissan,
good food is loved not shoved.
Bru:
Some moments in life are special and close to the heart. Bru makes
these moments with loved ones even more magicalIts Indias
largest coffee brand that offers a range of products in Instant coffee,
Conventional coffee and premixes....Its rich aroma and unique
blend makes every moment come alive
Knorr:
Knorr Ready to Cook helps the consumer make her family's favorite dishes at home
and helps her get restaurant like taste at home itself. It comes in the Indian Ready to
Cook range and Chinese Ready to Cook range.
Taj Mahal:
Crafted from carefully selected tender leaves from Indias finest tea
gardens, the lingering aroma of Taj Mahal always has an impact.
When a cup of Taj is served, compliments follow.
Annapurna:
Launched nationally in 1998, Annapurna Atta is aimed at helping the homemaker
provide wholesome, tasty nutrition to her family.
24
Comfort:
Comfort Fabric Conditioner understands this and has addressed this need
by formulating a fabric conditioner that not only refreshes the clothes but
also makes the HULarer feel cared for
Rin
Consumer insight shows that one of the leading drivers that indicate
a good wash is the level of whiteness and brightness that clothes
have after the use of a detergent powder. Rin is formulated to offer
whiteness and bring back life in your everyday clothes.
Surf excel:
Remember when you HULre a child? How you HULre free to
explore, returning home covered in dirt and other stains that you
wore like the badges of an intrepid discoverer?
Domex:
Domex bleach gives you the confidence you need, eradicating all
known germs. With Domex, you can be absolutely certain that the job is done
Cif:
Getting rid of tough stains in your house is not tough anymore. Cifs unique formula
with micro- particles remove the toughest dirt making your surfaces beautiful and
shiny like new.
25
Vim:
Created in 1885, the Vim brand is still innovating and using the
magic of natural ingredients to create unbeatable results over a
hundred years later.
consumers to look good and feel good and in turn get more out of life.
Clear:
The new range of Clear is poHULred with the dual benefit of Clear tech
and essential oils. The dual action of its advanced formula guarantees
Zero dandruff and leaves your feeling fabulous.
Close Up:
Closeup is synonymous with Freshness that gives you the
confidence to be close to someone
Lifebuoy soap:
26
Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions.
Lux:
Lux stands for the promise of beauty and glamour as one
of
Clinic Plus:
Clinic Plus understands that healthy hair is an important asset which helps your
family progress in life and empoHULrs you. It is leading brand in India.
Axe:
AXE is a cool, iconic, youth brand available in more than 60
countries. In India, Axe, which has been launched in 1999, is the
largest selling Male Deodorant.
27
Dove:
Dove is known to be a keeper of promises and has given real products to women
world over. To help you enjoy your own brand of beauty, Dove provides a wide
range of personal care, hair care, skin care and deodorants. So choose a new
way of pampering your skin, everyday, with Dove.
Strong brand
portfolio,price,quantity & variety.
Innovative Aspects.
Presence of Established
distribution networks in both urban
WEAKNESSES
Strong Competitors.
Low exports level (at present).
Changing consumption
pattern.
High advertising costs.
Corporate Social
Responsibility(CSR)
28
OPPORTUNITIES
THREATS
Changing
Lifestyles
&
Rising
29
CHAPTER 4
PRODUCT INFORMANTION
30
MISSION
To bring safety, security and health
to 5 billion people through the active
Promotion of hand washing with soap.
4.1 INTRODUCTION:
Lifebuoy is a famous and distinctive brand of soap that was created by the Lever
Brothers soap factory in 1894. It was the first soap to use carbolic acid, which gave it
31
a red color and strong, medicinal scent. Lifebuoy is still manufacture d today and is
the leading brand of soap in many developing countries including India. Today
Lifebuoy is sold in all over the World. It is market leader in every market where it is
sold.
The desire to be clean, active and healthy is intrinsic to every one irrespective of
age or economic status. Lifebuoy understands this need and champions the cause
for hygiene and health around the world.
An inspiring vision for more hygienic, healthier and ultimately more vital communities
is the driving force behind the Lifebuoy brand. To realise this vision, Lifebuoy has
looked to consistently innovate and provide accessible hygiene and health products
to a wide variety of consumers.
This vision also commits the Lifebuoy brand team to visible action, inspiring projects
that motivate consumers to improve their hygiene behaviour.
4.2 HISTORY:
In
1894,
William
Hesketh
Lever
launched
Lever
grew
up
in
industrialised
Bolton,
exceptionally
high.
32
Lever was actively seeking the perfect formula for a soap product that could
combat germs and still be affordable to everyone. In what could be termed as
a major scientific breakthrough of the era, he found just that in carbolic acid.
The brand went global in 1911 and began distributing to countries such as the
United States, Germany, Switzerland, Canada, India, etc.
The original Lifebuoy soap was manufactured in the UK until 1987 when the
production and distribution was halted. The brand was shortly taken over by
Unilever and is still in production today---albeit with several key differences.
Due to regulations put forth by the European Union, the soap can no longer
contain carbolic because it is potentially toxic and linked to skin irritation and
respiratory tract problems with prolonged exposure. The substance is also
considered a possible carcinogen.
Lifebuoy soap is still the leading brand of soap in several countries worldwide,
specifically in India and parts of Southern Asia. Unilever produces a wide
33
range of products under the Lifebuoy umbrella such as body wash, liquid
soaps and acne-fighting solutions
4.4 OBJECTIVES:
Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions
that enable people to lead a life without fear of hygiene anxieties and health
consequences.
4.5 INGREDIENTS
Sodium
Palmate
Sodium
Palm kemelate
Water
Parfume
Sodium
Glycerin
Sodium
Chloride
Sodium
Carbonate
Triclorocarbon
Pentasodium
Glyceril
Laurate
Curcuma
Cl
11680
Cl
12490
Ethane
Pentetate
Hydroxy Diphosphoric
34
Acid
Tetranatrium
EDTA
Methylchloroisothiazolione
The
brand's
core
promise
of
through
unbeatable
threatened. For
example,
The brand also provided aid after earthquakes hit Pakistan and Northern India
in 2005. Lifebuoy donated over 200,000 bars of soap to the International
Committee of the Red Cross to support the recovery effort.
35
Has Moisturizer and Vitamin E to keep your hands soft and smooth .
Lifebuoy Body Wash provides deep cleansing of pores, protecting against the three
root causes of skin health problems clogged pores, over-drying, and infectioncausing germs.
36
Clean, germ-free hands are the key to good health, as ingestion of germs from
unhygienic hands at mealtimes is the most likely cause for
comm on diseases. Lifebuoy Hand Soaps offer hospital-strength
germ protection, with a unique formulation that generates a rich
lather. This provides an effective and hygienic wash in every
corner of the hands and nails, at the same time leaving your
hands pleasantly fragrant.
37
CHAPTER 5
MARKET STRATEGIES FOR
LIFEBUOY
38
5.1 INTRODUCTION:
Lifebuoy has always been marketed as a tough cleaning soap for a tough man. (Of
course, the 2002 re-launch targeted Lifebuoy as a soap that brought good health to
the entire family). Lifebuoy has been seen as a value for- money product, a soap that
is long-lasting. In a very smart TV ad campaign, children are shown cleaning a street.
The message put across is that since these children are secure from ailments that
are caused by a lack of proper sanitation and hygiene, thanks to the fact that they
use Lifebuoy, they are in a position to ensure cleanliness and hygiene for the entire
community. Thus, Lifebuoy not only ensures good health and cleanliness for
individuals, but healthy and productive communities as well.
The targeting market for lifebuoy is all households who can afford
buying soap and who want to fulfill everyday need that provides them
and their family with a 100 anti bacterial solution and complete
protection from all germs bacteria and cleanliness from dirt
Lifebuoy belief that children are the potential agent for change and imparting
education on the importance of hand washing with soap will enable them to adopt
early habit in life
All this put Lifebuoy out of lime light and to survive in market, Lifebuoy positioned
itself on price it became low price antibacterial soap. This strategy may have
boosted short term sales of Lifebuoy but it lost its brand value and credibility in
the minds of customers. Lifebuoy needed to reposition itself on quality rather
than price.
40
The repositioning campaign of Lifebuoy was started at 2008, but it became more
prominent and became effective in 2009, Lifebuoy along with the advertisement
has improved its quality and fragrance, most of the people had shifted from
lifebuoy because it was low quality and it smelled terribly, as Lifebuoy has
improve d its quality all it needed to run an effective advertisement campaign to
get the customers attention. The advertisement team of Lifebuoy came up with
excellent theme Healthy Hoga Hindustan and it is targeting parents which is
their target market, Lifebuoy made very effective ad
and it also used fear strategy (which is effective in
case of antibacterial soap). This has enabled Lifebuoy
to get more and more customers. Now a days,
Lifebuoy
is
everywhere
in
Television,
Radio,
With the help of marketing department and advertisement, Lifebuoy has successfully
repositioned itself as a quality antibacterial soap with better fragrance and more
durability. Many companies try to reposition themselves when they see market
trend shifting but most fail to do so. In case of Lifebuoy it has been successful.
The interesting thing about this campaign is that Lifebuoy is running the same
campaign in Pakistan and in India as is done by Unilever, this suggest that
Lifebuoy
is
considering
41
Although Unilever itself is a part of a Multi market, but since we are talking about the
product Lifebuoy we can say that it is using a multi market strategy as well because
it has both soap and shampoo, not these two only but they have others antibacterial
liquid baths as well opening a way for Lifebuoy to be a multiple product.
EVALUATION:
In evaluating this multimarket strategy, one comes to know that Unilever is well using
its product of Lifebuoy in promoting its business. It has diversified that brand into
different categories to capture every part of the market. This strategy is helping
Unilever in a way that due to variety of products it not only saves the existence of a
single product but also saving other products which are complement to it.
Geography has long been used as a strategic variable in shaping market strategy.
History provides many examples of how businesses started locally and gradually
expanded nationally and internationally.
Unilever is having an international market strategy for Lifebuoy being available in
almost every continent of the world. It is a worldwide brand of Unilever available in
India, China, Indonesia, Cyprus, UK, USA along with Pakistan.
42
EVALUATION:
Lifebuoy has more than a life of 100 years, providing Unilever a key support in all of
its brand buckets. Unilever knows the significance of its brand therefore it has
globalized this product by making it an international brand. It has made it available in
Asia and Africa where it is used by those people who have a daily income of less
than 1 $. So Lifebuoy is well in line with its goals and objectives providing hygiene
and health solutions that enable people to lead a life without fear of hygiene
anxieties and health consequences.
Lifebuoy is one of the old products of Unilever which has more than 100 years of
successful journey, we can simply say that Lifebuoy is
the early entrants internationally and in India it is the
first-in in its kind of soaps.
By adopting the first-in strategy, Lifebuoy has captured
the maximum share of the market. Over 60 years in
India we guess there is not a single home that didnt
use it. Lifebuoy has taken the risk of the first-in and
consequently got one of the biggest markets in Asian
countries by providing its quality and sustained priced
product to both rural and urban areas of India.
Being the first-in in the market Unilever has shown strong commitment with its brand
of life time i.e. Lifebuoy and that commitment to its brand has really foster the growth
of Unilever as well as its brand of Lifebuoy. But from the recent decade Unilever is
no more showing the strong commitment to Lifebuoy because over the period of time
43
many of the competitors came in the market with new innovative product, better
market strategies and stronger commitment.
In the present scenario, Unilever is just showing an average commitment to its brand
of Lifebuoy which has really put its brand on the back foot.
EVALUATION:
In evaluating the market commitment strategy it is necessary for the Unilever to
again show strong commitment to its product. Although Unilever has well realized the
situation and make changes in its strategies which are making some changes in the
consumers mind but we think there is more need required to retrieve its image of
better quality at lower price in the customers mind.
Lifebuoy and other soaps fall into the category of Convenience Good
44
45
Lifebuoy because want this kind of changes and they do this through environmental
scanning.
46
In case of Lifebuoy shampoo different sizes are available, customers use according
to its requirements from 200ml bottle to 5ml sachet pack since there is no one time
consumption.
Market penetration:
Market penetration is the name given to a growth strategy where the business
focuses on selling existing products into existing markets. Market penetration seeks
to achieve four main objectives:
Maintain
or
increase
the
market
share
of current
products
this
can
be
achieved
by
47
Fast Moving Consumer Goods (FMCG) like lifebuoy shop has to be Some
requirements for making an impression in the market for penetrating:
1) Strong distribution channel
2) Minimum profit margin
3) Simple marketing message
4) Lesser-priced packs to increase affordability
5) Packaging in smaller units and localized design that attracts consumers
6) Convenience of storage while use
7) Thorough knowledge of the village psyche
In brief, the strategy revolves around what attracts consumers to a product.
5.6.3.PROMOTIONAL STRATEGIES:
48
deal: A temporary
reduction
in
the
price,
such
as
happy
hour.
Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage
markedon the package.
Price-pack deal: The packaging offers a consumer a certain percentage more of the
product
for
the
same
price
(for
example,
25
percent
extra).
Rebates: Consumers are offered money back if the receipt and barcode are mailed
to the producer.
49
the
opposite
direction,
right
up
to
Chanel of Distribution:
A distribution channel can be as short as being direct from the vendor to the
consumer
or
may
include
several
inter-connected
by
the consumer or business user. Channel intermediaries are firms or individuals such
as
wholesalers, agents, brokers, or retailers who help move a product from the
producer to the consumer or business user.
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A companys channel decisions directly affect every other marketing decision. Place
decisions, for example, affect pricing. Marketers that distribute products through
mass
merchandisers such as Wal-Mart will have different pricing objectives and strategies
than will those that sell to specialty stores. Distribution decisions can sometimes give
a product a distinct position in the market. The choice of retailers and other
intermediaries is strongly tied to the product itself. Manufacturers select mass
merchandisers to sell mid-price-range products while they distribute top-of-the-line
products
through
high-end
department
and
specialty stores. The firms sales force and communications decisions depend on
how much persuasion, training, motivation, and support its channel partners need.
Whether a company develops or acquires certain new products may depend on how
well those products fit the capabilities of its channel members.
Some companies pay too little attention to their distribution channels. Others, such
as FedEx, Dell Computer, and Charles Schwab have used imaginative distribution
systems to gain a competitive advantage.
Existing strategy:
Unilever uses a lot of distributors and retailers to supply its products in each market
where the final customer might reasonably look for it. While appointing a distributor
for a particular area, management uses its own judgment to select such a person
that has a potential to operate effectively.
Unilever uses an intensive distribution strategy for lifebuoy soap while at the same
brand but in shampoos category it introduces only extensive strategy. Unilever did
not fight for the better shelf space for lifebuoy soap. Lifebuoy is targeting middle and
low income consumers so shelf space is not important our main focus is on intensive
distribution and ideal price with some innovation.
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We have suggested that Unilever for life buoy should introduce a new kind of
distribution strategy that will be a strategic fit between its productions to
consumptions. Unilever should identify its larger, medium and small consumption
areas and design the channel accordingly. According to my sense and survey
lifebuoy must go for intensive distribution with wholesaler and retailers in the areas
where rate of consumption is usually very greater than that of the other areas where
comparatively rate of consumption is not so attractive.
Lifebuoy is available at every outlet and at every big, medium and even at very small
stores(hatti).Now we want to save the cost of per Tikki soap in Urban areas by
reducing intensive approach and turning to a new strategy that a more easily
applicable and sensible.
We have discussed the following diagrammatic distribution method of Unilever for
Lifebuoy in the both Rural and Urban Market as well.
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CHAPTER 6
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CONCLUSION &
SUGGESTIONS
CONCLUSION:
After study the market strategies of HUL for Lifebuoy, I have reached these
conclusion:
Lifebuoy soap brand market leader at Indian Urban and Rural Areas.
Most of the customers are satisfied with the performance of Lifebuoy soap
and their other products.
Approx 70% customers have positive and 30% customers have negative
attitude in support of preference of Lifebuoy soap and the other products of
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Lifebuoy.
Lifebuoy soap Improving health & hygiene for over 100 years in Indian and all
over world.
SUGGESTIONS:
I have tried to fully analyze the existing strategies of Lifebuoy, what I find from this
detail analysis are discussed as improved version of Lifebuoy where suggestions are
given from our side and what adjustments can be made in the present strategies to
improve the product performance and overall image of the product in the customers
mind.
In evaluating the position of the Indian market, Lifebuoy is lacking in its market
Geography strategy as it is more common in rural areas of the country where
more of the urban citizens keep it as a low level brand.
The major challenge Unilever has to face is its commitment to its old brand of
Lifebuoy. Unilever got a major setback when Reckitt Benckiser introduced
Dettol through a heavy media campaign. Unilever has tried to compensate
that through promotional program of Healthy Hoga India but still it needs a
strong and continuous commitment to this product.
Lifebuoy has well repositioned itself but still there is need to change the image
that it is a low quality low price product.
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In penetrating the market through price, Lifebuoy has to compete with brands
of P&G, Reckitt Benckiser and Colgate-Palmolive which are a good name of
quality, so accordingly Lifebuoy has to adjust its prices at that level where it
creates dominance among the existing brands.
In promoting the worth of the Lifebuoy, it has to modify its promotional
campaigns base on traditional heroism and fantasy; one is to come up with
new realistic approaches highlighting the need of an antibacterial soap in
most hygienic environment.
While deciding about the selection of Channel Company should consider
customer buying patterns and the nature of the market.
A general distribution pattern with distributors and retailers are the agents in
the urban areas to remove lag time in delivery of the product. Since in rural
areas the places are diversified so to improve the distribution there is an
inclusion of the whole seller to make the distribution extensive.
These are some suggestions from our side identified through complete analysis
and view of Lifebuoy. I hope that these suggestions can make a difference in the
Lifebuoy by proper implementation and planning.
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BIBLIOGRAPHY
Google.com
Wikipedia.com
Scribd.com
Marketingprofs.com
Dostoc.com
Slideshare.com
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