Lifebuoy Product life cycle & Marketing Strategies

By:
RAHUL PAGARIA SHUBHAM SINGH AKASH JAISWAL

Introduction
One of the oldest brand of HUL & positioned as health & hygiene soap. Introduced in 1895 as a disinfectant soap especially when the country was severely affected by diseases like typhoid plague & yellow fever Only soap brand to cross 100,000 tones of sales in a single year. The Brick Red Soap with its beautiful jingle have carried the message of health across the length and breadth of the country making it the largest selling soap brand in the world

Marketing mix
Product
Launched as carbolic red disinfectant soap Initially meant only for health & hygiene Strong Brand Image. Moved on to freshness , beauty care, nature care & deodorant

Price
Targeted lower & middle income group mainly the rural consumers Moved on to high prices following the process of trading-up

Pricing
Lifebuoy Variants
Lifebuoy (Total& Plus) Rs. 12 for 90 gms Lifebuoy DeoFresh (Rs.10) Lifebuoy Active Rs 12 Lifebuoy clear skin (Rs.13) Lifebuoy Nature Rs. 13 for 90 gms)

Price Of Various Lifebuoy Products vis-a-vis its competitors

Inter Competitors
Godrej.no.1 (Rs.8), Santoor (Rs.10) Cinthol (Rs.13) Dettol (Rs.16), Savlon (Rs.16) Fair glow (Rs.10), No marks (Rs.19) Medimix (Rs.13), Chandrika (Rs.12)

Intra Competitors
Breeze (Rs.8 for 100 gms.) Liril (Rs.16), Lux (Rs.13) Rexona (Rs.13 for 100 gms.) Fair & Lovely(Rs.10), Dove(Rs.27), Pears (Rs.20). Hamam (Rs.13 for 100 gms.)

Promotion Place
Strong distribution channel mainly targeted rural market. 2000 suppliers, 80 factories,45 C & F agents,4000 stockiest, 1m direct outlet, 6.3 m total outlet Initially positioned as a male brand then moved on to family brand CSR works - health programs for promotion to make people aware about health & hygiene Tandrusti ki raksha in 1992 Koi darr nhi in 2002 Yuvraj to endorse Lifebuoy

Positioning
How does the brand differentiate itself from its competition in the mind space of the consumer Total = mothers with active kids DeoFresh= young adults Nature = traditionalist mothers Gold Care = sensitive skin

Lifebuoy is positioned as a complete family health soap. Concept- health for the entire family Tagline- Koi darr Nahi Also positioned as a value-for-money product, a soap that lasts long Recently, Lifebuoy also started using ensure cleanliness and hygiene for the entire community. Globally its positioned as a disinfectant.(a bar soap keeps u away from germs)

Packaging
Distinct features Benchmark with Competition

The packaging of Life buoy has changed from that of hard cover wrapper specifically for men to soft cover for the family

In 2002 Lifebuoy moved from being a hard soap to a mild soap - delivering a significantly superior bathing experience The new soap painted its promise of health in softer, more versatile and responsible huesfor the entire family

Brand Evolution Timeline

Launched in 1894 Went global in 1911 Launched as a family soap in 2002 Life Buoy Dispenser Clear skin and acne removal

1962 White version introduced

Hand Sanitizer introduced

Mens Body wash

Product life cycle

Product life cycle is the stages over which a product develops & affects the sales and profits over time. The five stages of each product lifecycle are: Product development Introduction Growth Maturity Decline.

Introduction Stage of the PLC

Summary of Characteristics, Objectives, & Strategies
Sales Costs Profits Marketing Objectives Product Distribution Low High cost per customer Negative Create product awareness and trial Offer a basic product

Build selective distribution Heavy to entice product trial

Promotion

1895 - 1930
1895 lifebuoy started its journey in India. Targeting Indian blue collared as effective disinfectant. Successfully accepted with promise that it kills germs and keeps body healthy In 1911, went global. Marketing strategies Product strategy- Carbolic soap. Price and promotion strategy-Rapid penetration. Distribution strategy-Concentrated distribution strategy.

Growth Stage of the PLC

Summary of Characteristics, Objectives, & Strategies
Sales Costs Profits Rapidly rising Average cost per customer Rising

Marketing Objectives Product

Price Distribution Promotion

Maximize market share Offer extension, service, warranty

Penetration strategy Build intensive distribution Reduce to take advantage of demand

1931-1969
By 1931 demand for lifebuoy increased. Launched officially & Captured huge market share. 1963 the lifebuoy was most popular body soap in India. lifebuoy special launched as a line extention( failed due to unclear positioning). 1967- ranked 1 among the top 5 private sector firms(turnover of 932.8 billion, 6 factories & 7000 employees) . Advertising efforts are limited Enjoyed Monopoly.

Marketing strategies:
Product strategy Introduction of new models. Price and promotion strategy Penetrating Pricing(rapid penetration) Distribution Strategy- increase in distribution coverage

Maturity Stage of the PLC

Summary of Characteristics, Objectives, & Strategies
Sales
Costs Profits Marketing Objectives Product Price Distribution Promotion

Peak
Low cost per customer High Maximize profits while defending market share Diversify brand and models Match or best competitors Build more intensive distribution Increase to encourage brand switching

1970-1996
By 1970, sales grown but at lower rate, Witnessed squeeze in sales, records 69% as market share. Increased Competition (P&G, Godrej & Nirma Entered in market. In 1977, Nirmas used same marketing strategy and become 2nd largest seller. In 1980, TV ads used for promotion. In 1990, Soap industry witnessed rapid growth due to liberalisation. Lifebuoys monopoly was challenged by competitors. In 1992, Nirma Launch Nirma Bath affects lifebuoy.

Marketing Strategies:
Product strategy Product Modification Price & Promotion Strategy Penetration Pricing Distribution Strategy Focus On Profitable Segment & focus on Important Channels Of Distribution

Decline Stage of the PLC

Summary of Characteristics, Objectives, & Strategies
Sales Costs Profits Marketing Objectives Product Price Declining Low cost per customer Declining
Reduce expenditures and milk the brand

Phase out weak items Cut price

Selective: phase out unprofitable outlets Reduce to minimum level

Distribution
Promotion

1996
By 1996, market share fell to 45%. By 1999,Income level increased, consumer preferred to but expensive soap. By 2001, market share fell to 40 % and later 0n 30.65%(www.livemint.com) Low pricing results perception that lifebuoy is only for poor people and those who belong to the lower middle class thought by urban people. Rejuvenate its lifecycle

Rejuvenate
Repositioning the brand with several new product. Extend life cycle of the brand, it adopted a strategy of brand rejuvenation. Backed by High Advertisements Budgets, it injected new products targeting higher segment of Indian market. HLL launched lifebuoy Active. Positioning Shift from a male brand to a family Brand.

Several Variants of new soap Lifebuoy Active(2002) Lifebuoy total (2004) Active fresh(2004) Nature(2004) Care(2004) deo fresh(2006) international plus(06) International gold(06) Lifebuoy Hand wash(06) Lifebuoy clear skin(06) Lifebuoy talcum powder(08) Lifebuoy Hand Sanitizer(09) Lifebuoy Body Wash. (10)

CSR works
In 2001,HLL put 14 stalls at Maha kumbh Mela to spread awareness about health & hygiene. The L S C programme was initiated in 2002 as a rural health and hygiene initiative in India to create awareness about importance of washing hands with soap. It covered across 8 states, Covering 130 million people in 30,000 villages. Acc. To HLL, the campaign was not philanthropic activity, but a marketing programme with a social benefit.

Campaigns and promotional activities

Lifebuoy has launched save the children campaign. Lifebuoy conducts global hand washing day(guinese record) Lifebuoy launched the lifebuoy way of life in Mumbai. In 2003, sales grew up by 20% (under LSC area). In 2005, goodwill increased & sales grew by 10%. In 2006, Lifebuoy becomes 1st brand to have a special postal cover news & used Krrish for promotion. HUL holds 64% market share.

Limitations of PLC
Like humans, products does not have a very predictable life so the concept of PLC is not well suited for forecasting of product sales. It yields a product oriented picture rather than a market oriented picture. PLC may become self fulfilling ,means if sales peak & then decline, managers may misinterpret it as decline phase & therefore cut the advertising budget and thus making a further decline.

THANK YOU

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