PRODUCT AND BRAND MANAGEMENT

CASE STUDY – LIFEBUOY IN INDIA

NAME – ASHUTOSH PATRA

FMS-MBA-2020-22-034

1. How did Lifebuoy master the PLC in terms of BLC (Brand Life Cycle)?
When Lifebuoy was first presented to the market, it was positioned as a "promise to eliminate germs and
keep the body healthy," brand, addressing one of the Indian market's major problems: plagues, and
thereby addressing the market's need for hygiene and health protection. Lifebuoy's key approach was to
keep prices low and promote the product sparingly so that those who were impacted by the plague,
particularly rural and poor people, could afford it. These two characteristics contributed to the brand's
initial success.

Lifebuoy has been an agile and good citizen brand of India, reaching millions of rural clients from its
inception in the late nineteenth century. "Tandurusti Ki Raksha Karta Hai Lifebuoy," the company's
renowned advertising jingle, was so well-known that it allowed the brand "Lifebuoy" to be mistaken for
a "red carbolic soap" for decades. During most of the second half of the twentieth century, the brand saw
protracted periods of growth and maturity before entering a period of decline in the early twenty -first
century, with sales declining at a pace of 15%–20% per year. Because of the declining sales of Lifebuoy
carbolic soap, Hindustan Lever Ltd. decided to discontinue the product category in 2002 and relaunch the
brand with smart marketing methods that maximised the brand's image.

➢ The "health and hygiene" product platform had no substitutes, and lifebuoy was a key contributor to
HUL's total revenue. Due to the high expenditures of print and other media, advertising efforts were
limited, and they mostly targeted those who were hardworking, thrifty, and of the lower
socioeconomic level. 70% of the population has accepted lifebuoy as a daily requirement. By 1967,
lifebuoy brands had grown fast, and the company had a turnover of INR932.8 million, placing it among
the top five private sector firms in terms of sales. Any red soap was viewed as a lifesaver by
consumers.
➢ The late 1970s saw the beginnings of maturity, with sales increasing but at a slower rate due to rising
competition. During the 1990s market liberalisation, the soap business experienced significant
growth, and consumer markets were saturated with a wide variety of new soap products.
➢ Due to a growth in the number of competitors in the soap bar manufacturing industries, monopoly
was challenged. People favoured more expensive soaps as their economic level climbed. The services
industry experienced a strong growth rate of 10.5 percent in 1999-2000, compared to 7.1 percent in
1993-94. Sales of Lifebuoy's carbolic soap began to decline in rural regions as consumers demanded
more benefits from soap. From 69 percent in 1992 to 45 percent in 1996, growth has slowed. At the
turn of the century, lifebuoy's market share began to dwindle. Lifebuoy's minor growth of 4.5 percent
in 2000 resulted in a PLC drop.
➢ To stay relevant to current consumers, brands must move with the times in order to prolong their life
cycle. The art and science of constructing and developing a brand image by understanding the needs
of current consumers is known as brand development. They extended the life cycle by using the brand
name and launching several variants of new soaps, talcum powder, deodorants, handwash etc. They
 did not change the actual positioning of their brand but gave the customers the products that they
want.

2. What are the takeaways from the case in terms of managing the product & brand in a particular
category?

Every product and brand have its life cycle. Brands must evolve with the times in order to stay relevant
to current consumers and extend their life cycle. In this case, Lifebuoy was the only brand in the mid-20th
century that positioned itself as a health and hygiene brand. It was a complete monopoly. But as soon
different brands entered the market and launched their products things changed. Their number of
customers declined. Sales of a product often begin to level off once multiple competitors enter the
market and the number of potential new buyers falls. This signifies that a product's life cycle has
progressed to the maturity stage. Most consumer products are towards the end of thei r life cycle, and
their consumers are mostly repeat customers rather than new ones.

Customers earn more money, their lifestyle changes and so does their taste in products. Here brands like
Lifebuoy need to realise that they need to bring something in the market that will keep their customers
interested and keep them in the race. If brands don’t evolve themselves and their products then it will
eventually decline. The crux is you have to evolve yourself as a brand and your products according to your
customers. You need to listen to your customers. That will help you stay in the race.

3. Which recent extensions have contributed to lifebuoy's success in growing the brand?

They have launched a variety of products and their extensions. They have launched variety of soaps,
handwashes, sanitizers (a hit because of COVID-19), bodywashes and a Lifebuoy men’s range.

➢ Soaps – Lifebuoy Total Protect, Lifebuoy Mildcare, Lifebuoy Naturepure, Lifebuoy Activfresh, Lifebuoy
Vitaprotect, Lifebuoy Moistureplus and Lifebuoy Clearskin.
➢ Handwash – Lifebuoy Total, Lifebuoy Care, Lifebuoy Nature and Lifebuoy Activfresh.
➢ Bodywash – Lifebuoy Total Protect, Lifebuoy Mildcare, Lifebuoy Naturepure, Lifebuoy Activfresh,
Lifebuoy Vitaprotect and Lifebuoy Moistureplus.
➢ Sanitizer – Lifebuoy Total, Lifebuoy Care.
➢ Men’s range – 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 that provide
the most important benefit to men skin are: Deodorising and Hydrating.

By launching so many products and their varieties Lifebuoy is keeping its customers interested.

Thank You