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This Detailed Case Study

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0% found this document useful (0 votes)
121 views5 pages

This Detailed Case Study

Uploaded by

resham.ghosh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

This detailed case study, "Unilever's Lifebuoy in India: Implementing the Sustainability Plan," by Christopher

A. Bartlett, explores the challenges and strategic decisions faced by Unilever's iconic Lifebuoy soap brand in
India.

1. Lifebuoy's Decline and Samir Singh's Challenge:

• In early 2013, Samir Singh, Global Brand VP for Lifebuoy, faced a dual challenge: reversing
Lifebuoy's declining global market share (from 11.2% in 2005 to 9.7% in 2009) and its even steeper
decline in India (from 18.4% to 15.5%).

• Simultaneously, his boss challenged him to double sales in five years.

• Adding to this, Singh committed to the Unilever Sustainable Living Program (USLP) goal of
improving the health and hygiene of a billion people by 2015, with Lifebuoy positioned as a key driver
for this goal.

2. Unilever's Heritage and Lifebuoy's Origins:

• Unilever, by 2012, was a strong global competitor in the FMCG industry. Its roots traced back to
William Hesketh Lever, who founded Lever Brothers in 1851 with a strong belief in "doing well by
doing good," producing soap to improve public health during a time of rampant disease in urban
environments.

• Lifebuoy soap, launched in 1894, embodied these values, offering antiseptic properties at an affordable
price, positioned as "soap that could save lives."

3. Global Expansion and Organizational Challenges:

• The 1930 merger of Lever Brothers and Margarine Unie formed Unilever. Its global operations were
managed through a geographic organization with strong national operating companies (Opcos).

• Over decades, Unilever struggled to balance local responsiveness with the need for global coordination,
leading to a complex, slow-moving organizational structure by the end of the 20th century.

4. Lifebuoy in 21st-Century India: Decline and Relaunch:

• By 1995, Lifebuoy was India's leading health soap, but its brand was perceived as old-fashioned.

• The Indian economy's slowdown in 2000 and aggressive new competitors led to a sharp decline in
Lifebuoy's market share and sales value between 1997 and 2001.

• Hindustan Unilever (HUL) decided to focus on rural areas (70% of Lifebuoy sales), despite challenges
like illiteracy and limited infrastructure.

• An innovative approach involved recruiting women as "Shakti Ammas" (strength mothers) to act as
local distributors, providing them with microcredit and small-pack products.

• In 2002, Lifebuoy was relaunched, replacing its carbolic brick with a shaped, milled toilet bar,
repositioned as a family health soap, and aimed at women. The price remained economical.

5. Rural Outreach: Swasthya Chetna:

• HUL launched "Swasthya Chetna" (Health Awakening), a rural outreach program aimed at reducing
diarrhea-related deaths (600,000 children under five annually in India).

• Trained "health development facilitators" visited villages, educating schoolchildren through illustrated
stories, visual aids, quizzes, and the "Glo-Germ" demonstration, which visually showed germs
remaining on hands after washing with only water.

6. Turnaround and New Challenges:


• The initiatives had mixed results: revenues grew by 20% in 2003-2004 and 10% the following year,
regaining market leadership by 2005 with an 18.4% share. However, profit margins declined due to
unchanged pricing.

• Swasthya Chetna reached over 120 million people, increasing immediate germ awareness and short-
term soap use, but failed to achieve sustained handwashing habit change.

7. Late-Decade Reversals and New Market Challenges:

• A "Life without Fear" campaign (2005) focused on mothers' worries about children getting dirty, but
failed to communicate product advantages, leading to a drop in germ-protection scores and market
share.

• Another relaunch in 2007, based on a clinical trial showing handwashing reduced school absences and
infections, struggled to communicate the link between soap and health to consumers unfamiliar with
germ concepts. Lifebuoy's market share continued to fall.

8. Rejuvenating Lifebuoy Liquid and Dettol's Challenge:

• The swine flu pandemic triggered a switch from beauty bars to health soaps, and consumers became
price-insensitive to germ protection.

• Lifebuoy's R&D team developed a liquid soap formulation that could get hands germ-free in 10
seconds, leading to the relaunch of Lifebuoy Liquid Handwash in 2010. Its "futuristic package" made it
a symbol of "modern households."

• Dettol, traditionally a first-aid antiseptic, expanded into soap in the 1980s, positioning itself on germ
protection. By 2007, Dettol began targeting Lifebuoy's segment with smaller, cheaper packs. The fast-
growing liquid handwash segment was set to be the main battleground.

9. New CEO, New Directions: Paul Polman and USLP:

• Paul Polman became Unilever's first outside CEO in January 2009. He implemented significant
strategic and organizational changes, emphasizing long-term growth and sustainability over short-term
financial targets.

• Polman introduced the Unilever Sustainable Living Plan (USLP) in October 2010 with three goals:
halve environmental footprint, source 100% sustainable raw materials, and help a billion people
improve health and well-being.

• USLP was seen as core strategy, aligning with the mission to "do well by doing good." It involved
taking responsibility for the entire value chain, from sourcing to consumer use.

• Polman streamlined the organization ("One Unilever") by shifting power from country-based Opco
chairmen to global brand leaders. Lifebuoy's Global Brand VP was based in Singapore, with global
brand teams in Mumbai, Singapore, and Nairobi.

• USLP targets were embedded in business decisions and monitored by PwC.

10. Lifebuoy Rebooted: New Players, New Priorities:

• Samir Singh was appointed Global Brand VP for Lifebuoy, tasked with revitalizing the brand. He
returned Lifebuoy to its roots: offering protection from diseases spread by germs.

• Marketing focused on "hot spots" (e.g., monsoon season) and tailored messages.

• Product innovations included Clinicare 10 (10x better germ protection) and Lifebuoy Color Changing
Handwash for children.

• From 2009-2012, Lifebuoy's global sales increased by 17% p.a., with a goal of becoming a €1 billion
brand by 2015.
• Myriam Sidibe, Global Brand Director, Social Mission, advocated for reaching a billion people with
handwashing programs. Singh embraced this bold goal, allocating 450 million of the 1 billion USLP
behavior-change target to HUL in India.

11. Implementation in India: Reviewing the Options:

• Sudir Sitapati, HUL's Category Manager for Lifebuoy in India, presented three behavior-change
models:

o The KKD Rural Outreach Initiative ("Caravan of Happiness"): A multibrand rural outreach
program replacing the earlier "Health Awakening." It involved teams visiting villages,
conducting "Glo-Germ" demonstrations for housewives, and offering coupons. While cost-
effective per contact (Rs. 6), it was becoming less so in remote villages and faced concerns
about sustainable behavior change. Payback period was estimated at 8.6 years for Lifebuoy
and 5.7 years for Unilever.

o The MP Partnership Initiative: An Indonesian "School of Five" model adapted for Madhya
Pradesh, an extremely poor Indian state. This UNICEF-backed program targeted 900,000
children in 5,700 government schools, focusing on a 21-day intervention with "five non-
negotiables" (awareness, commitment, reinforcement, reward, 21 days practice). It was
unbranded, relied on external funding, and had a very long payback period of 13.5 years.

o The Urban Schools Liquids Initiative: A marketing initiative focused on increasing Lifebuoy
Liquid Handwash use in 25 urban cities (population >1 million) where liquid soap penetration
was 7-10% and growing rapidly (up to 40% annually). It adapted the "School of Five"
program for urban schools with interactive games, songs, dances, and Glo-Germ
demonstrations. It had a shorter payback period of 3.5 years due to higher margins.

12. The Decision: Singh's Balancing Act:

• By early 2013, Lifebuoy was Unilever's fastest-growing brand (17% average annual growth), outpacing
Dettol. However, its handwash program had only reached 119 million people globally, far short of the 1
billion USLP target.

• In India, behavior-change programs reached 17 million people in 2012, totaling 47 million since 2010,
but this was still below the 450 million target.

• Singh wanted to increase the A&P budget for behavior-change programs (currently 5%), recognizing
their potential to reach media-dark populations.

• Sitapati was concerned about the long payback periods of behavior-change programs compared to
traditional marketing investments.

• The decision involved complex trade-offs between local and global implications, profit objectives, and
the ambitious USLP goals. Singh, Sitapati, and Polman each had to consider how to best balance these
tensions to ensure Lifebuoy's continued growth and social impact.
Good morning everyone!

A very warm welcome to our esteemed panellists, our respected faculty coordinator Dr. Lakshmy Priya Ma’am,
The HOD of the School of Business and Management, Dr. Rashmi Rai ma’am, our MBA Program coordinator
Dr. Aishwariya N Ma’am, Srinivasan Sir – and to all the bright, young minds joining us today. We are truly
delighted to have you here for a discussion that promises to be insightful, inspiring, and transformative.

This event is proudly organized by the BNI Foundation in collaboration with CICF and the School of Business
and Management, Christ (Deemed to be) University, BRC Campus.

Look around you – each one of you is standing at a unique crossroads. For some, it may be placements, for
others, the exhilarating leap into a startup, or even charting an entirely new path, rewriting the rules as you go.
The choices you make now will shape your journey. And that, precisely, is the heart of our discussion today:
“Careers, Startups & Crossroads: Making Bold Choices as a Young Leader.”

Our goal today is to explore the multifaceted world of entrepreneurship in all its dimensions. Every one of our
distinguished speakers is deeply rooted in the entrepreneurial ecosystem. Together, we’ll uncover the many
aspects of building something from the ground up – from sparking an idea and securing funding, to scaling
operations, navigating governance, and developing the resilience needed to thrive.

In a world that often nudges us toward linear, predictable paths, today we’re here to challenge that notion. We’ll
celebrate detours, small beginnings, the wisdom of saying ‘no,’ the grit of rolling up our sleeves, the strength of
listening to our inner voice, and the transformative power of staying true to our roots.

We are privileged to have with us an inspiring lineup of thought leaders, innovators, and mentors who have each
navigated their own crossroads with courage and conviction. Today, they are here to share their journeys and
insights with you.

Now, without further ado, let me introduce our phenomenal panel:

• Mrs. Lakshmi Priyaa T T, Founder of LIFE PURIFIED – a visionary in the health and wellness
space. Her journey shows us that the greatest detours often lead to the best decisions. She will open the
session with her perspective on “Why my biggest detours became my best decisions.”
We warmly welcome Mrs. Lakshmi Priyaa to the dais.

• Mr. Manoj Kumar Madhavan, Founder of Future Bites. From shaping digital backbones globally to
pioneering “Freeze dry” technology in India, his passions span dance, music, biking, and social
activism. His talk: “Forget the ‘big idea’ — small bites build big businesses.”
May I now warmly invite Mr. Manoj Kumar Madhavan to the dais.

• Mrs. Divya Venkatraman, Investment Consultant at Wudstreet, with 16 years of diverse experience
across finance and IT entrepreneurship. She will offer her unique lens with “The smartest investment?
Saying no.”
Please join me in welcoming Mrs. Divya Venkatraman to the dais.

• Mr. Jerri Mathew, Co-Founder of Daatprints Business Solutions. A first-generation entrepreneur with
15+ years of global experience, he knows that credibility comes through action. His topic: “Why
consultants should sometimes stop giving advice — and start getting their hands dirty.”
We now warmly invite Mr. Jerri Mathew to take his seat on the dais.

• Mrs. Archana Sudhir, ICF-certified Youth Foundation Coach and Mental Fitness Facilitator. With
over 18 years across technology, sales, and coaching, she will share “Your inner critic is not the enemy
— it’s the compass.”
Extending a warm welcome to Mrs. Archana Sudhir to take her seat on the dais.

• Dr. Sharon Samuel, Chief Consultant and Founder of Trttvam. An Ayurvedic physician, family
counselor, and hypnotherapist with 15+ years of experience, she will close the discussion with “Why
going ‘backwards’ to Ayurveda helped me leap forwards.”
May I now invite Dr. Sharon Samuel to take his seat the dais.
Ladies and gentlemen, let’s give a big round of applause to our distinguished panelists!

Introducing Ms. Vaishnavi, our moderator for today’s panel discussion to kickstart the session. Over to you,
Vaishnavi.
……………………………………………………………………….
What an insightful discussion this has been! A heartfelt thank you to our esteemed panellists for enlightening us
with your experiences and perspectives. A special thanks to Vaishnavi for moderating the session so seamlessly.

I now invite Mr. Bismanjot Singh Sethi to deliver the Vote of Thanks.

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