LIFEBUOY -- RURAL MARKETING

GROUP NO. 1 ABHISHEK KUMAR ATUL SHARMA DHRUV SINGHAL ISHAN MISHRA KANISHK GAUTAM SAUMYA SRIVASTAVA

INTRODUCTION
LIFEBUOY FIRST LAUNCHED IN 1895. INITIAL TARGET : TOUGH, LABOR CLASS

MANS .
HARD

RECTANGULAR

BAR,

RED

IN

COLOR.
STRONG CARBOLIC SCENT

SUCCESS AND COMPETITION FROM OTHERS

NEW CAMPAIGN TO MAKE HANDS GERMS FREE

LARGEST SELLING SOAP IN INDIA BY 1940.

IN 1992 NIRMA LTD. LAUNCHED NIRMA BATH SOAP AT

HALF PRICE OF LIFEBUOY.

SUCCESS OF NIRMA ENCOURAGED OTHERS TO TARGET

THE VALUE FOR MONEY SEGMENT.

LIFEBUOYS MARKET SHARE SLID DOWN FROM 15.4% IN

1997 TO 12.5% IN 2001.

RELAUNCHING LIFEBUOY
IN 2002 LIFEBUOY WAS RELAUNCHED. WAS A MILD SOAP WITH A FLORAL SCENT. TARGET FROM MALE CONCEPT TO ENTIRE

FAMILY, BENEFICIAL FOR HEALTH CONCEPT.

SIZE DECREASED FROM 150gms to 125gms AND

PRICE INCREASED FROM 8.50 TO 9.

MARKET SHARE 18% IN 2002.

RURAL MARKETING
HLL FOCUSED ON RURAL MARKET 70% OF

ITS SALES.
TWO MAIN PROBLEMS IN RURAL MARKETING :

AVOIDING SOAP IF HANDS DID NOT APPEARS DIRTY.

IN VILLAGES NO ACCESS TO MASS MEDIA SUCH AS TV AND RADIO.

RURAL MARKETING AND PROMOTION

HLL HIRED TWO-PERSON TEAMS TO GO INTO VILLAGE

SCHOOLS AND TEACH YOUNGSTERS BETWEEN AGES OF

5 AND 13 ABOUT INVISIBLE GERMS.
LATTER PARENTS AND VILLAGE ELDERS WERE

APPROACHED.
IN 2002, RURAL CONTACT PROGRAMME. LAUNCHED LIFEBUOY SWASTHYA CHETANA

PROGRAMME MEANT HEALTH AWAKENING.

RURAL MARKETING AND PROMOTION (CONTD.)

RURAL MARKETING (CONTD.)

In 2003, HLL, MAKING LIFEBUOY AVAILABLE AT

BARGAIN PRICE OF RS. 2 IN RURAL MARKETAT RETAIL LEVEL. IN RURAL MARKET IS EXTERMELY PRICE SENSITIVE. 4 AS OF RURAL MARKETING :

AVAILABILITY AFFORDABILITY AWARENESS ACCEPTABILITY

NIRMA RURAL MARKETING

Nirma is one of the few names that is instantly

recognized as a true Indian brand Nirma has always practiced VALUE FOR MONEY . Nirma literally captured the market share by offering value-based marketing mix of four Ps ,i.e. a Perfect match of product, price, place and promotion

INTRODUCTION
NIRMA was started in the year 1969 by Karsanbhai

Patel,in Ahmedabad in Gujrat . Chemist by profession named NIRMA, after his daughter NIRUPAMA Successful journey began with sale of 15-20 packets of nirma washing powder a day which was YELLOW in colour Lower in quality than surf but far more effective than traditional slab of soap

Strategies followed for success

Stockist made responsible for all transportation &

delivery cost who were mainly relatives & family members Distribution dependent on prepayment for stocks Came up with ads in the late 1970s with catchy jingles and stockist were responsible for 50 % funding of promotional expenditure His daughter name attached to company gave distinctive and personal aspect that helped nirma stand out from others

KEY DIFFERENCES OF NIRMA & HLL

Price

Ingredients
Soda ash main raw material abundant in gijarat Focused on tier 4 i.e. 4 billion people who live mostly

in developing countries

World pyramid
Tier 1 Population 75-100 million income>$20000

Tiers 2 & 3 Population 1.75 billions Income $2000-20000

Tier 4 Population 4 billion Income <$2000

NIRMA-FINALLY WON THE WAR OF BUBBLES

Regional product bring permanent success

Outnumbered hll sale in rural areas

Take advantage of the vacant market left by hll which

was thought to be not penetrable but them 1/3 rd price of regular price was the enough harbinger of nirma to survive in market Became number 1 brand in asia : focused on massive market segment that was hungry of getting a good quality product at affordable price

HOW HLL REACTED

When nirma came with detergent bar to compete

with rin, this time hll took it seriously & came up with project sting & put its plan in to action

SWOT ANALYSIS OF NIRMA

STRENGTH:

BACKWARDINTEGRATION (Into 2 main raw

materials- alkyl benzene and soda ash) MARKET LEADERSHIP DISTRIBUTION NETWORK

SWOT CONTINUED
WEAKNESS:

Image of CHEAP brand. Less presence in the premium brand segment.

Lack of global tie ups

SWOT CONTINUED
OPPERTUNITIES:

Exports Entry in to other categories.

Acquisitions of local players

SWOT CONTINUED
THREATS:

Brand image. Existing Players like HUL, P&G, Godrej ,ITC. Lacked necessary network in urban areas. MNCs coming to India. Emergence of small regional players