1

THE INDIAN SOAP INDUSTRY:

The origins of personal cleanliness date back to
prehistoric times. Since water is essential or 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
2800BC.Inscriptions on the cylinders say that fats were
boiled with ashes, which is a method of making soap, but
do not ref er 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, 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.

THE INDUSTRY ANALYSIS:

The toilet soaps market is estimated at 53
0,000Tpa including small imports. The market is littered
over with several, Leading national and global brands
and a large number of Small brands, which have limited
markets. The popular and premium brands include
life b u o y , LUX, cinthol, liril, rexona, and nirma.Toilet
soaps, despite their divergent brands, are not well
differentiated by the consumers. IT is, Therefore, Not
clear if it is the brand loyalty or experimentation lured by
high volume media campaign, which sustain them.
Consequence is that the market is fragmented. IT is
obvious that this must lead to a highly competitive
market. Toilet soap, once only an urban phenomenon,
Has now penetrated practically all areas including
remote rural areas.
The incremental demand flows from population increase
and rise in usage norm impacted as it is by a greater
concern for hygiene. Increased sales revenues would
also expand from up gradation of quality or per
unitvalue.AS the market is constituted now; It can be
divided into four price segments: premium, Popular,
Discount and economy soaps.
Premium soaps are estimated to have a market volume
of About 80,000 Tonnes. This translates into a share of
About 14 to15%.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.

HINDUSTAN UNILIVER:
With over seven brands LUX, LIFEBUOY,
HAMAM, REXONA, BREEZE, DOVE and PEARS
has 54.3%share of the overall soap market. HUL is
India's largest Fast Moving Consumer Goods
(FMCG) Company; its journey began 75 years ago,
in1933,when the company was first incorporated.
The company stirring the lives of two out of three
Indians with over 20distinct categories in Home
&Personal Care Products and Foods & Beverages

and also one of the country's largest exporters.

HUL's brands includes Lifebuoy, Lux,
Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,
Sunsilk, Clinic, Pepsodent, Close-up, Lakme,
Brooke Bond, Kissan, Knorr-Annapurna, Kwality
Wall's - are household names across the country.
They are manufactured in over 40 Factories
across India. In the Rs 7000 crore by sales soap
market, HULs market share has dropped to
54.3%inMarch 2008 from 55.9% in March 2006.
ABOUT LIFEBUOY:
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.

The lifebuoy brands social mission is to bring safety,

security and health to five billion people through the
active promotion of hand washing with soap. And while
our products already provide millions of people with
accessible and affordable hygiene, as the worlds
leading health soap, we know there is more the brand
can do.
Through the Lifebuoy brands social mission
programmes we aim to make a difference in peoples
day-to-day lives spreading positive hygiene messages
through hygiene promotion activities. The projects
instigated by our country teams are already making a
difference and helping to save lives. The resources we
provide to complement those supplied by the public
sector are vital to ensure that we continue reaching
people who need our help the most. Our commitment to
the Lifebuoy social mission is evident in the steps we
have taken towards making hand washing with soap
central to the brands marketing efforts.
This report gives an overview of the work Lifebuoy has
done in 2008 and 2009, partnering Lifebuoy together
with public and private sector partners around the world,
who share the brands commitment to promoting health
and hygiene. Without these important partnerships it
would not be possible to share our messages on such a
large scale.
Before joining the Lifebuoy team, I worked for nongovernmental organisations and in the public sector, and
have lived in more than 20 countries around the world. I
sought a platform from which I could make a real impact
to peoples lives. I believe that Lifebuoy and Unilever as

a corporation offers this platform, with clear, tangible

deliverables that are relevant both for business and
social benefits. Visiting some of the Lifebuoy brands
social mission programmes in India, Indonesia and
Vietnam has made me realise that we have already
achieved so much, thanks to the right support and gives
me the confidence that we can achieve a lot more. The
commitment of our Lifebuoy teams across the world is
exceptional and unique.

KEY FACTS
--Today Lifebuoy is mainly sold in Asia and parts of
Africa. It is a market leader in every Asian market where it is
sold
--Lifebuoy soap has been proven in laboratories to
provide 100% more effective germ protection than
ordinary soaps
--To date, millions of people in rural and urban Pakistan
have experienced the pioneering, Lifebuoy sponsored
Health Education programme the single largest private
hygiene education programme in the world
--In 2005, Lifebuoy was awarded a 'Citizen Brand'
accolade in Indonesia in recognition of the work the
brand has undertaken in hand wash education.

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Nearly half of the Lifebuoy brand's consumption is in

rural Asia, where most of the population live on less than
US$1 per day

COMPANY ORIENTATION
Company orientation towards the market place
means the arena in which the company focuses
.there is various concepts which company may follow to
reach out to customers.
--Production concept: Lifebuoy uses
production concept where it tries to m a k e
its product available in all the parts of
t h e c o u n t r y. I t h a s i t s availability in
50000 villages in India and the part of
L i f e b u o y s o a p s affordable and lowest among all its
compotators.
--Product concept : Lifebuoy also uses product
concept where it has i n t r o d u c e d i t s s e v e r a l
products such as Lifebuoy active red ,
L i f e b u o y active orange , Lifebuoy plus. It has
also launched new products under the brand
Lifebuoy such as talcum powder, Shower gel.
--Marketing management concept: the four pillars
of marketing concept are Target market; customer
needs integrated marketing, profit ability. Lifebuoy

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targets the rural; market, where the customers

needs are goods at lower cost, lifebuoy considers
that and markets its products considering the needs of
the target market.
--Societal concept: Lifebuoy SWASTHY CHETANA is a
single largest rural health a hygiene educational
programme ever undertaken in India. Its
major objective is to educate people about
hygiene. Lifebuoy became first Indian brand to
have a special postal cover which was released
on the occasion of World Health Day for the
phenomenal work done by Lifebuoy

PRODUCT LEVELS
--Core product: Core benefit that a customer expects
from Lifebuoy products to keep them clean after using a
Lifebuoy product.
--Basic product: Basic products that Lifebuoy provides
are Lifebuoy range of soaps, talcum powder, Lifebuoy
hand wash, Lifebuoy shower gel, etc.
--Expected product: Customer buying
L i f e b u o y p r o d u c t e x p e c t s t h a t t h e products
they use must be skin friendly and not in any form harm
them and the environment.

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--Augmented product: A Lifebuoy user

n e v e r e x p e c t e d f r a g r a n c e i n t h e Lifebuoy
product he used but now there is various
fragrances available to face prevailing competition.

CLASSIFICATION OF PRODUCTS
--Based on tangibility: all lifebuoy products
a r e t a n g i b l e p r o d u c t s since all can be used by
their customers for physical wellbeing.
--Based on functional life: All Lifebuoy products are
consumer products since they are used by the
customers on daily basis.
--Based on Price and Quality: All Lifebuoy
p r o d u c t a s a r e m a s s p r o d u c t s since they can
be used by one and all they are not only meant for all
users, it does not have any barriers that they can be
used only by certain age group or any particular class.
--Based on Utility: all Lifebuoy products are consumer
products since they are immediately consumed once
bought.
--Convenience goods: All the products of
Lifebuoy provide convince to customers.

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SWOT Analysis of Lifebuoy:

Strengths:
1. First soap to use carbolic acid, which gave it a
red colour and strong, medicinal scent
2. Wide portfolio for the Lifebuoy brand ranging
which includes Soap, Hand Sanitizer and Hand
Wash
3. High consumer awareness for the brand of
Lifebuoy
4. Most popular soap brand especially in the rural
market
5. Excellent brand visibility and extensive
distribution

Weakness:
1.Lower market penetration in urban areas
as compared to rural areas
2.Initially positioned as a masculine soap,
which was eventually turned as a family
soap.
3. Not been perceived as a beauty soap, and
is mainly used just for hand washing

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Opportunity:
1. The Lifebuoy Swasthya Chetana programme
uses adirect consumer contact methodology,
and touches the lives of 70 million people in
18,000villages
2. Imparting education about importance of hand
washing
to
prevent
spread
of
germs
3. Used global epidemics like swine flu to further
promote products for better hygiene and
protection.

Threats:
1.Competitor brands offering similar levels of
protection
2.Considered to be a low-end product, and
may find it difficult to move up in the
segment.

SWOT ANALYSIS OF HUL:

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STRENGTHS
Strong brand portfolio, price, quantity & variety.
Innovative Aspects.

Presence of Established distribution networks in

both urban and rural areas.
3400Distributers
16 million outlets over the world.
700 million customer base.
Strong R & D of the company.
Highly skilled human resource.
Corporate Social Responsibility (CSR).
WEAKNESSES

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Strong Competitors.
Low exports level (at present).
Changing consumption pattern.
High advertising costs.
OPPORTUNITIES
Large domestic market - over a billion population.
Untapped rural market.
Changing Lifestyles & Rising income levels, i.e. increasing
per capital income of consumers.

THREATS
Tax and regulatory structure.
Mimic of brands
Entry of ITC in FMCG sector.
Increasing cost of raw materials.

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BRAND HISTORY
The HLL spokesman sums it all up in his words,
Lifebuoy is Indias oldest personal wash brand. It has
been around since 1895. It has always stood for health
and hygiene, delivered through germ protection. The
ruby red colour
Soap, with its distinct odour, has carried the Lifebuoy
message of health across the length and breadth of the
country, making it the largest selling soap brand, not
only in India, but anywhere in the world. The name
Lifebuoy is supposed to convey the promise of a
healthy family, and not just an individual

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Brand Positioning and Brand Building

Originally, Lifebuoy was a down market brand, but in
recent times, HLL has made efforts to Position it as
more of an upscale product. HLL has positioned
Lifebuoy as a pan-Indian brand, targeted at every Indian
family, Urban or rural, rich or poor. It aims at bringing a
live Lifebuoys Promise of family health in an enjoyable
and compelling manner.
Chimes the HLL spokesman enthusiastically, We strive
to Build the Lifebuoy brand through mass media
advertising, direct Consumer contact, and trade
activation.

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HLL repositioned the Lifebuoy brand in 2002, in an

attempt to Make it more relevant to both new and
existing customers.
After this revamp, Lifebuoy is no longer just a carbolic
soap with Cresylic perfume. It is now being positioned
as toilet soap. The new Formulation, launched in 2002 ,
contains Active-B, which protects users against germ
infections. The current Lifebuoy formulation offers a
superior bathing experience.
Lifebuoy has also re-established its message of health
for consumers , from the traditional, male , victorious
concept of health to a more responsible concept of
health for the entire family . Thus a stereotype that
glorifies good health for the head of the family (a male) ,
and possibly the other working members of the
family(Again, invariably males), has been done away
with, indeed replaced by a more democratic concept of a
healthy family.
The Brand Derby has rated Lifebuoy as one of the most
successful brand re-launches of all time.
As the HLL spokesman points out, After the re-launch,
Lifebuoys market share in the bath soaps sector rose
from 12% to 18%.
In 2003, HLL took a major pricing initiative , by making
Lifebuoy available at the bargain basement price of 2
rupees at the retail level. This pricing strategy is targeted

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at the rural market, where buyers are extremely pricesensitive.

In 2004, Lifebuoy saw another re-launch, whereby it was
given a new curved shape, a change from the more than
100-year-old brick shape. The health soap now had an
easy grip and a modern look.
HLL demonstrated, with the aid of laboratory tests, that
the new Lifebuoy was twice as good as other soaps in
terms of providing germ protection. Lifebuoy now
provided protection from germs that cause body odour,
acne and infections in cuts and bruises.
HLL currently provides Lifebuoy consumers with four
choices - Lifebuoy Strong, Lifebuoy Fresh, Lifebuoy
Gold and Lifebuoy Naturals all different variants of
Lifebuoy. All these variants are available in the new
curved shape and have the new formulation.

EVOLUTION AND CHANGES:

Lifebuoy went through several changes and incarnations
throughout the brands history. A white version of the
soap was introduced in 1962 and contained a light
perfume scent. Pink and aqua version was released
soon after. Each package of lifebuoy contained the
phrase knock out B.O. and the brand is credited with
coining the long standing abbreviation for body odour.
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 Uniliver and

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is still in the production todayalbeit with several key

differences.
Due to regulations put forth by 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 is still the leading brand of soap in several
countries worldwide, specifically in India and in parts of
Southern Asia.
Uniliver produces a wide range of products under the
Lifebuoy umbrella such as body wash, liquid soaps and
acne-fighting solutions. Lifebuoys 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.

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MARKETING STRATEGIES
Lifebuoy has always been marketed as a tough
cleaning soap for a tough man. (Of course, the 2002 relaunch 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

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and cleanliness for individuals, but healthy and

productive communities as well.
The Lifebuoy Swasthya Chetana programme uses a
direct consumer contact methodology, and touches the
lives of 70 million people in 18,000 villages. A unique
feature of this campaign is that it utilises multiple
contacts, as opposed to other programmes which are
single contact in nature.
Gushes the HLL spokesman, This programme aims to
educate people about the benefits of hand-wash with
soap, and how hand-wash can help kill invisible ,disease
causing germs. It is thus a marketing programme with a
strong social cause of improving the health and hygiene
of rural India. The brand USP is, Lifebuoy provides
100% better protection from germs as compared to
ordinary soaps.

Growth of the Brand in the face of Competition

In the mid to late 1990s, Lifebuoy was reeling under the
onslaught of the discount soaps, which were luring
consumers by offering soaps with modern forms and
good sensorial experience at affordable prices.
Consumers saw Lifebuoy as an outdated offering vis-vis discount soaps. The two re-launches in 2002 and
2004 enabled Lifebuoy to reverse this trend and
reinvent itself.

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Adds the HLL spokesman, The two re-launches have

dramatically altered the fortunes of the brand, which is
on a high growth trajectory today. We have come a long
way from a ruby red carbolic soap to a range of
contemporary offerings. Our vision statement is: Make a
billion Indians feel safe and secure by meeting their
health and hygiene needs.

MARKET SEGMENTATION
TARGET MARKET
Mass marketing
Lifebuoy products vision is to provide a healthy
living to one and all. So their target is not only a
section of people but a mass be it rural areas or
urban areas. Their productssuch as lifebuoy
total, lifebuoy active, lifebuoy hand wash etc are
targeted to the entire mass.
Segment market
Lifebuoy divided the market into segments
to cater the needs of different people
i n different segments. For example they have lifebuoy
active green for those who want germfree protection
through herbs and not chemicals. Then they
have lifebuoy shower gel targeted to people who
want style and not just soap. For teenagers they
have lifebuoy skin care, deo fresh etc.

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BASIS OF MARKET SEGMENTATION

GEOGRAPHIC SEGMENTATION
Rural:
75% of India's population is in the rural areas; hence
about 50% of the soaps are sold in the rural markets.
Lifebuoys variants like Lifebuoy plus, Lifebuoy total,
lifebuoy active are specially positioned for the rural
market.
Semi-urban:
For the semi-urban segment, Lifebuoy
nature & Lifebuoy fresh, lifebuoy talcum is
positioned.

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Urban:
Whereas Lifebuoy clear skin soap, Lifebuoy
deo fresh, Lifebuoy international (plus&
gold), lifebuoy shower gel are meant for the urban
segment.
DEMOGRAPHIC SEGMENTATION
Age
They have different soaps positioned for different age
groups for eg they have lifebuoycare men and children.
They have lifebuoy skin clear for the teenagers, lifebuoy
total for mothers, lifebuoy deo fresh for young adults etc

Gender
They had earlier focused their brand only on
men. But when they realized that women h a v e a
more command on the purchase of soaps,
t h e y r e p o s i t i o n e d t h e i r b r a n d b y including
products for women and the family as a whole. They
have lifebuoy skin clear. Gold care for women and
lifebuoy total, lifebuoy care for men.

Income
The income factor plays a major role in buying decision
of the consumer. Now they know t h a t i n r u r a l
areas people will not prefer shower gels

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a n d h a n d w a s h e s b e c a u s e t h e i r purchasing
power permits them to satisfy only their basic need of
having a bath. So soap prices are the least among their
range of products which are really affordable. Whereas
a person from urban or semi urban area will have the
purchasing power to buy shower gels and hand
washes. So they give them the satisfaction of
their basic necessity with fewmore additions . The
prices of shower gels and hand washes will be a little
more than the soaps but now too higher. In any
case the main motive of lifebuoy is to give a
better hygienic life to the mass
BEHAVIOURAL SEGMENTATION
Benefit sought
Benefits sought by people from different
products are different. Lifebuoy active green
makes use of herbal products so its an eco
friendly soap. Lifebuoy skin care helps in
preventing pimples and protects skin
User rate
Lifebuoy soaps like lifebuoy care, lifebuoy
total, and lifebuoy herbal are used more
among the people whereas lifebuoy hand wash,
lifebuoy shower gel are used at a lower rate.

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4 Ps of marketing of Lifebuoy

PRODUCT POSITIONING
it is the single largest soap brandwith 20 lac
soaps sold every day and an estimated value of Rs
500 crore (600 million users annually
The relaunch of the 107-year-old
Lifebuoy has been done in a bid to drive growth in a
sluggish soap market.
HLL challenged everything that Lifebuoy stood for
- perfume, formulation, size and shape.
extending it to talcum powder and also testing a
herbal variant of this power brand.
LIFEBUOY PORTFOLIO:
Today, the Lifebuoy brand is more than the
quintessential bar of red soap, and provides hygiene
and health for the entire family through a range of
products like liquid hand wash and specially designed
body wash. Beyond ensuring daily hygiene and
freshness, Lifebuoy products also address special
needs like anti-acne and skin fortification for an all
around cleansing experience.
Hand Sanitizer
Lifebuoy Hand Sanitizer effectively disrupts bacterias
cell membrane & viruss outer coat thereby kills germs &
viruses on your hands. Proven to kill H1N1 virus Dries
quickly, is non-sticky and has soothing fragrance. Has

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Moisturizer and Vitamin-E to keep your hands soft and

smooth.
Bar Soap
Lifebuoy bar soaps support childrens health and growth
by providing extended germ protection for up to
12 hours after a bath thanks to enhanced
ingredients. Lifebuoy Body Wash provides deep
cleansing of pores, protecting against the three root
causes of skin health problems clogged pores, overdrying, and infection- causing germs.

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Hand Soap
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 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.
Lifebuoy Men's Body wash
Male skin is more oily and sweaty, making it more prone
to attacks from germs that cause skin problems and
body odour. Lifebuoy Men's Body Washes are specially
formulated to wash away excess oil and sweat,
protecting against body odour and other problems
caused by germs. Two variants provide the most
important benefits to mens skin
Clear Skin
Lifebuoy Clear Skin provides specialist protection from
acne, which results fromoil and dirt coming together.
Mineral clay or "multani mitti" absorbs the oil fromyour
skin, while washing away germs and dirt to greatly
reduce the incidence of acne. In fact, Lifebuoy Clear
Skin has been shown to reduce acne up to70 per centin
six weeks, guaranteeing visibly clearer skin

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Did you know?

Lifebuoy has always played a role in times of crisis,
helping to prevent the spread of germs and disease. In
2004, Lifebuoy distributed 4 million soap bars Pakistan
wide. Same year, Lifebuoy Partnered with Save the
Children, an NGO of the Bill Gates Foundation and
educated young mothers about health and hygiene, in
the rural areas of Pakistan. In 2005, over 200 000 bars
of Lifebuoy soap were donated to UNICEF and the
International Committee of the Red Cross to support
their earthquake relief operations in Northern India and
Pakistan. Lifebuoy have also Partnered with UNICEF by
training teams and sending them to the earthquake hit
areas for relief and health education.

THE WAY FORWARD

--For the past few years, major changes have been
made to the classic Lifebuoy soap bar to ensure that it
provides improved hygiene protection and a more
enjoyable healthy washing experience for its billions of
consumers.
--Lifebuoy soap's classic hard red brick shape has been
replaced with a new signature Lifebuoy shape. The new
shape makes the bar easier to grip and use

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--The Lifebuoy Brand team have developed a new

formulation providing even better germ protection which
creates a rich lather on the skin.
--Lifebuoy soap's characteristic medicated, carbolic
smell has been replaced with a moreenjoyable and
contemporary 'health' fragrance
--Lifebuoy is now toilet soap with 2 more variants
offering specific multiple benefits
--White offers moisturizing and a distinct fragrance
--Green is anti-acne (neem and lemon)
Lifebuoy has become more than just a bar of soap
today the brand provides hygiene and health solutions
for families.
LINE EXTENSIONS ADVANTAGES & EXAMPLES
When HLL introduced Lifebuoy in the Indian market in
1895(more than 100 years ago!), it was positioned as
the soap that would destroy germs and keep the body
healthy.
The brand found the going tough, especially in rural
markets where most people were accustomed to bathing
without any soap. HLL then decided to project Lifebuoy
as soap for hand wash.
The approach seemed to pay off. By 1900, Lifebuoy had
established itself as soap for hand wash.

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At this stage, the brands inherent properties were

expanded and Lifebuoy was repositioned as bath soap.
Health remained the benefit proposition. Where there
is Lifebuoy, there is health became a very popular jingle
in rural India. The brand was also projected on the plank
of economy.
Much later, in 1964, the brand was re-launched with a
slight change in its shape and wrapper design. The relaunch was also backed by promotion campaigns
highlighting the health benefit. Lifebuoy started
associating with sports events, seeking the image of a
champions soap and the health and body fitness
campaign got reinforced at this stage.
By the 1970s, competitors entered challenging
Lifebuoys supremacy. The benefit-propositions in soaps
were also changing from healthcare to aspects such as
freshness, beauty, nature-care and deodorant-quality.
HLL now had many requirements to meet; it had to tap
some of these emerging market needs, it had to play
down the image of Lifebuoy as a mere villagers soap
and it had to enhance the earnings from the Lifebuoy
brand in the long term.
HLL decided to meet these needs by enlarging the
scope of the Lifebuoy brand through line extensions.
Lifebuoy personal:

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HLL now launched Lifebuoy Personal, in pink color, with

a new perfume. But the brand suffered because it did
not carry the benefit proposition of health and body care.
HLL subsequently mended these drawbacks through an
appropriate promotion campaign.
Lifebuoy Plus:
In the 1980s, HLL made special attempts to expand the
reach of Lifebuoy to urban consumers. To quote HLL,
Lifebuoy was considered down market especially in the
urban areas. So, we had to instill a sense of pride in the
user; he should not be ashamed of using Lifebuoy. So
Lifebuoy Plus came; it basically was the old Lifebuoy
with a different perfume. Backed by high budget
advertisement, HLL managed to popularize Lifebuoy
Plus. Says HLL,With Lifebuoy Plus we could widen the
appeal to new, urban consumers.
Lifebuoy Gold:
One more extension appeared for the urban consumers,
Lifebuoy Gold; it broke away from all traditional red color
of lifebuoy; it was pure white, had different fragrance
and was higher priced.
Liquid Lifebuoy:
By this time, Liquid Lifebuoy also staged its entry to
strengthen the brands presence in the urban market. It
was a modern product form.

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In the rural markets, Lifebuoy continued its dominance in

spite of competition; there was the stubborn Lifebuoy
user in the rural areas, who continued to patronize the
brand. The line extensions Lifebuoy Personal, Life
buoy Plus, and the campaigns around them helped
strengthen the brand name Lifebuoy to a great extent.
Lifebuoy Active:
But by the late 1990s, Lifebuoy was again under
pressure. To quote HLL: Lifebuoy has been facing
pressure; carbolic soaps are being challenged by cheap
fatty- matter based soaps. We are taking a series of
measures to counter it. HLL then came out another
extension, Lifebuoy Active, to take on the challenge
posed by non-carbolic soaps.
While Lifebuoy continues its fight into the next century of
its growth, HLL is endeavouring to keep Lifebuoy young
and novel. The parent brand and the extensions
together enhance the competitiveness of HLLs soaps
line. Lifebuoy remains the largest selling soap brand in
India and a big revenue/profit earner for HLL.
POSITIONING STRATEGY
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.

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The brand was initially positioned in the health and value

platform. It was positioned by the jingle " thandurusti
ki raksha kartha hai lifebuoy, lifebuoy hai jahan
thandurusti hai vahan." Lifebuoy was previously
targeted at the male user with an individualoriented success through health positioning.
During its entry into the soaps market it was
alsopositioned as having low prices. The new
Lifebuoy is targeted at todays discerning
housewife with a more inclusive family
health protection for my family and me
positioning.
Its variants - Lifebuoy Total is positioned for all
those mothers with active kids who constantly fear
hygiene threats from germs leading to stress and
anxiety for the mothers. Lifebuoy Deo Fresh is
positioned especially for young adults who lead
active lifestyles. Lifebuoy active green, on the other
hand, which comes with neem and tulsi, is positioned as
a herbal soap. Lifebuoy Gold Care is specifically
designed for sensitive skin. Lifebuoy clear skin, as the
name suggests, is positioned for pimple free skin.

PROMOTION
TV and print campaigns, focused attention on the
family health themes.
Conducted consumer education exercise using "Germ
tests.

37

Explored the communication options during World

Health Day.
Created The Lifebuoy Swashthya Chetana
HLL was also offering cross company product mixes
HLL used Mahakumbh melaas an opportunity
to change hand-washing and bathing habits in
rural India.
Cinema van operations

PROMOTIONAL STRATEGIES:
Successful promotion campaigns don't happen by
chance. To realize goals, promotional products
programs must be carefully planned, taking into

38

consideration the audience, budget and, of course, the

ultimate result to be gained.
1. Define a specific objective.
2. Determine a workable distribution plan to a targeted
audience.
3. Create a central theme.
4. Develop a message to support the theme.
5. Select a promotional product that bears a natural
relationship to your profession or communicationstheme.
6. Don't pick an item based solely on uniqueness, price
or perceived value.
Dont fall prey to the latest trends or fads. The most
effective promotional products are used in a cohesive,
well-planned campaign.
Sales promotions are non-personal promotional efforts
that are designed to have an immediate impact on sales.
Media and non-media marketing communications are
employed for a pre-determined limited time to increase
consumer demand, stimulate market demand or improve
product availability. Lifebuoy is promoting its product
using these kinds of promotional techniques
Consumer sales promotion techniques:
The different consumer sales promotion techniques
used by Lifebuoy are Price 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 marked on the package.
Price-pack deal:
The packaging offers a consumer a certain percentage
more of the product for the same price. Coupons:

39

coupons have become a standard mechanism for sales

promotions. Free-standing insert (FSI): A coupon booklet
is inserted into the local newspaper for delivery.
Rebates: Consumers are offered money back if the
receipt and barcode are mailed to the producer.
Contests/sweepstakes/games: The consumer is
automatically entered into the event by purchasing the
product.

BRAND POSITIONING FOR THE FUTURE

For the future, HLL intends to position Lifebuoy as a
family health offering through germ protection. We will

40

strive to make our promise enjoyable and compelling, to

build authority and affinity for the brand, states the HLL
spokesman proudly.
Advertising media-mix
In addition to its TV campaign, HLL also uses other
methods and media, such as direct consumer contact,
radio, statics, and point-of-sale, in order to reach
consumers who do not have access to a television set .
The Lifebuoy account is currently being handled by the
ad agency Lowe. In the Lifebuoy ad by Lowe, a schoolgoing kid is shown, who, on a holiday, decides to clean
up the
garbage-strewn streets of his
neighbourhood. He wakes up from bed, wears his
spectacles, fetches a broom, and ties a piece of cloth
around his forehead. He then starts cleaning the streets,
dump ing the garbage into a cardboard box . He sets an
example, as other children in the neighbourhood soon
join him. A lady in the neighbourhood expresses her
concern for the well being and hygiene of the children,
and another lady, a confident mother, reassures her with
the words, Koi Dar Nahi.This concerted effort by the
children transforms the d dirty neighbourhood into a
spanking clean area. Now, to express their gratitude, all
the parents give their children an open-air bath
with. .Yep, you guessed it
right.Lifebuoy.

41

The line Koi Dar Nahi implies that a well-protected

family has no reason to fear hygiene related illnesses or
problems.
Concludes the HLL spokesman, Even for the TVviewing consumer, in todays cluttered world, we do feel
the need to bring our brand alive to consumers in
multiple ways at multiple touch points, to remain visible.
In conclusion, Lifebuoy seems right on target to make a
clean sweep of the Indian soap market!
Brand Update:
Lifebuoy has taken a vow to make India healthy. The
new
campaign
"Banaye
Healthy
Hindustan".
The new ad campaign takes the route of Before- After
theme.
The brand selected two apartment complex for this
experiment. In one apartment, the children were asked
to use Lifebuoy soaps 5 times a day and another
apartment were selected where there was no change in
the lifestyle . After the experiment, children in the
apartment where the brand was used recorded
remarkable increase in terms of school attendance and
a decrease in the incidence of diseases. Lifebuoy is
claiming that the experiment proves that using the brand
5 times a day can dramatically reduce the chance of
getting illness and improve school attendance by 40%.

42

The current campaign is an extension of the famous

Swastya Chetana initiative of the brand where the
children are encouraged to wash their hands with soaps
in order to reduce the incidence of diseases like
diarrhoea.
This time Lifebuoy is using the before-after theme .
Indian brands are right now using the high-risk beforeafter theme. Horlicks was the one which came to my
mind which had successfully used this experiment
format to catch the consumer. The strategy is risky
because the claims has to be authentic otherwise the
brand will be in trouble. Secondly these claims should
be
believable.
HUL has tried a similar campaign for Pepsodent
(Dishum Dishum campaign) where it encouraged kids to
brush their teeth twice a day. The campaign was a
highly
successful
one.
Through the new campaign, Lifebuoy is expecting
similar
success.
It is commendable for a brand to strive hard for a noble
cause. The brand has chosen a right cause which
mutually helps both the brand and the community.

43

PRICE
Hindustan Lever Ltd (HLL) currently on a price
discount includes 150 gm Lifebuoy Gold (Rs 3 off )
HLL is also expected to follow suit with its Surf sachets
HLL have deliberately introduced small pack sizes.
Lifebuoy, HLL's largest selling soap brand,
recently introduced a Rs2 SKU (stock keeping unit) of
18 gm targeted at the rural market in the Bimaru States

PRICING STRATEGIES:
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 a combination
of competitive pricing strategies ,advertising, sales
promotion and perhaps more resources dedicated to

44

personal selling.
Secure dominance of growth markets.

Restructure a mature market by driving out

competitors; this would require a much more aggressive
promotional campaign, supported by a pricing strategydesigned to make the market unattractive for
competitors.
Increase usage by existing customers for example
by introducing loyalty schemes 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.
CONSUMER SALES PROMOTION TECHNIQUES:

45

The different consumer sales promotion techniques

used by Lifebuoy are:
Price 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 marked on 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).
Coupons: coupons have become a standard
mechanism for sales promotions.
Free-standing insert (FSI): A coupon booklet is
inserted into the local newspaper for delivery.
Rebates: Consumers are offered money back if the
receipt and barcode are mailed to the producer .
Contests/sweepstakes/games: The consumer is
automatically entered into the event by purchasing
the product.
.

46

PLACE
70% of India's population resides in villages
HLL has established a single distribution channel
by consolidating categories
HLL has mounted an initiative, Project Streamline, to
further increase its rural reach with the help of rural substockiest.

47

DISTRIBUTION STRATEGIES:

Movement of goods and services from the source through the

distribution channel, right upto the final consumer, or user and the
movement of payment in the opposite direction, rightup to the original
producer or supplier.
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 (usually independent but mutually
dependent) intermediaries such as wholesalers,
distributors, agents, retailers. Each intermediary got the
items at one pricing point and moves it to the next higher
pricing point until it reaches the final buyer also called
channel of distribution or marketing channel.
IMPORTANCE OF DISTRIBUTION:
Most producers use intermediaries to bring their
products to market they try to develop a Distribution
channel to do this. A distribution channel is a set of
Interdependent organizations that help make a product
available for use or consumption 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

48

the consumer or business user. A companys channel

decisions directly affect every other marketing
decision. Place decisions, f or 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
that 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.
FUNCTIONS OF DISTRIBUTION CHANNEL:
Distribution channels per form a number of functions
that make possible the flow of goods from the producer
to the customer . These functions must be handled by
someone in the channel. Though the type of
organization that per forms the different functions can
vary from channel to channel, the functions themselves
cannot be eliminated. Channels provide time, place, and
ownership utility. They make products available when,

49

where, and in the sizes and quantities that customers

want. Distribution channels provide a number of logistics
or physical distribution functions that increase the
efficiency of the flow of goods from producer to
customer .Distribution channels create efficiencies by
reducing the number of transactions necessary
for goods to flow from many different manufacturers to
large numbers of customers. This occurs in two
ways. The first is called breaking bulk. Wholesalers and
retailers purchase large quantities of goods from
manufacturers but sell only one or a few at a time to
many different customers. Second, channel
intermediaries reduce the number of transactions by
creating assortments providing a variety of products in
one location so that customers can conveniently buy
many different items from one seller at one time. The
transportation and storage of goods is another type of
physical distribution function. Retailers and other
channel members move the goods from the production
site to other locations where they are held until they are
wanted by customers.
Channel intermediaries also perform a number
of facilitating functions, functions that make
the purchase process easier f or customers and
manufacturers. Intermediaries often provide
customer services such as offering credit to buyers and
accepting customer returns.
Customer services are often times more important in
B2B markets in which customers purchase large
quantities of higher priced products.
EXSISTING STRATEGY:

50

Unilever uses a lot of distributors and retailers to supply

its products in each market where the final customer
might reasonably look f or it. While appointing a
distributor f or 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.
SUGGESTED DISTRIBUTION STRATEGY:
We have suggested that Unilever f or lifebuoy 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

51

Rural and Urban Market as well. We have eliminated the

existence of wholesaler from in the urban market as
of many reasons: It is a lower consumption area
for Lifebuoy Warehousing cost can be a big trouble f or
wholesalers as they did not purchase extra quantity from
distributors and company and definitely it increases cost
of contacting to wholesaler and managing relationship.
While the selection of channel company considers
customer buying patterns and the nature of the market.