UNILEVER’S LIFEBUOY IN INDIA: IMPLEMENTING THE SUSTAINABILITY PLAN

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CONTENTS

THE THE
SITUATION QUESTION

THE THE
COMPLICATION SOLUTION

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 INDIA MARKET OVERVIEW
Majority of Indian still in strugglers and live in rural area

Social Economy Class India

> 30.800 Elite 2%

Household Income

15.400 – 30.800 Affluent 4%

7.700 – 15.400 Aspires 8%

Next
2.300 – 7.700 Billion 42%

<2.300 Strugglers 44%

Rural vs Urban India Maps

Rural India Urban India

• 83.3 crore live in • 37.7 crore live in

rural areas urban areas
• Poor sanitation • Overcrowding
• Poverty • Water quality
• illiteracy • Waste disposal

BCG, MRUC 2010 MarkPlus Inc. 3

 THE SOCIAL BENEFIT
Reduce child mortality in India is social benefit that Lifebuoy
want to achieved through “hand-washing” program

Origin of the Business Marketing Program with Social

Benefit
William Hesketh Lever
“I believe that nothing can be
greater than a business, however
small it may be, that is governed
by conscience” Help reduce child mortality in India
-doing good by doing well-

Child Mortality Cause in India

“Hand-washing” program

To prevent respiratory infection and

diarrheal as germs generated diseases

Perina tal Conditions

Respira tory Infections
Diarrheal Diseases
Para sites Diseases
ill Defined Conditions
Unintentional Injuries
Nutritional Deficiencies
Malaria
Congenital Anoma lies
Others

Hul.co.in, Registrar in India 2011 MarkPlus Inc. 4

CONTENTS

THE THE
SITUATION QUESTION

THE THE
COMPLICATION SOLUTION

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 DOUBLE CHALLENGES
Singh had to achieve 1 billion global sales in 2015 while Sitapati
obligated to achieve 450 million behavior-change target in 2015

2010 2013 2013

CEO UNILEVER Global Brand VP Category Manager Lifebuoy

Paul Polman Samir Singh India
Sudir Sitapati
Unilever Sustainable Living Plan
-2020- 2015 2015

halve the environmental Increase Lifebuoy Global

1
footprint of its products Sales to 1 Billion
Bring “hand-
help 1 billion people washing” as
Volunteered Lifebuoy to
2 improve their health and
fulfill USLP 2 target behavior-change to
wellbeing
450 million of
source 100% of its people in INDIA
3
agricultural raw materials

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 PREVIOUS PROGRAM
Lifebuoy still facing challenges even after a series of relaunch
& repositioning

2000 2002-2005 2009-2012 2013-2015

Shakti Ammas Swastya Chetna Singh’s Initiative WHAT NOW?

Educate school
distribute Educate mothers
children by
Lifebuoy’s value that lifebuoy can
delivering health
while selling protect their family
and hygiene
Lifebuoy’s bar soap from flu to
message through
with smaller size diarrhea
quiz

No significant 79% parents and Global sales

difference 93% children wash increase 17% and SUSTAINABLE
hands but didn’t gross profit STRATEGY
UNSUSTAINABLE last increase 22%

Case Brief MarkPlus Inc. 7

CONTENTS

THE THE
SITUATION QUESTION

THE THE
COMPLICATION SOLUTION

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 LIFEBUOY BEHAVIOUR-CHANGE PROGRAM
Sitapati had to choose which program that should be
implement in India

WHICH MARKETING PROGRAM THAT SHOULD BE IMPLEMENTED IN INDIA BY

SITAPATI IN ORDER TO REACH 450 MILLION BEHAVIOR-CHANGE TARGET?

KKD RURAL OUTREACH MP PARTNERSHIP URBAN LIQUID

PROJECT SCOPE PROJECT SCOPE PROJECT SCOPE

 Rural area
 Housewives
 Multi brand
 Teams visiting
 Small workshops at local
space (Glo-germ demo, TVC,
video game, prizes)
 Door to door selling
 Product placement at village
shops
 Rural area
 School children
 Lifebuoy only (unbranded)
 Partnership with school, MP
government, and UNICEF
 “school of five” held in public
school
 Hand washing program
 Train teacher and set cascade
program to 3 other school
 Urban area
 School children
 Lifebuoy only (branded)
 Partnership with school, MP
government, and UNICEF
 “school of five” held in public
school
 Hand washing program
 Train teacher and set cascade
program to 3 other school

Case Brief MarkPlus Inc. 9

CONTENTS

THE THE
SITUATION QUESTION

THE THE
COMPLICATION SOLUTION

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 MARKET SEGMENTATION
Based on the 3 segmentation, harmonious villager is the
segment that must be “own” based on the objective

OWN ATTRACT ACCEPT

Prevent diarrhea &
respiratory infection to Harmonious Rising Prosperous
reduce child mortality Villager Towns Folk Metropolitan

CHARACTERISTICS
Rural Area Sub-Urban Area Urban Area
AREAS Madhya Pradesh, Bihar Karnataka, Tamil Nadu Punjab, Kerala,

SECS Strugglers to Next Billion Upper Next Billion to Aspires Affluent to Elite

MAJOR CONCERNS Poor Sanitation Unemployment Overcrowding

PREFERENCES Price-Value Product-Value Brand-Value

BUYING DECISIONS Family Oriented Following the Trend Self Oriented

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 BRAND POSITIONING
Lifebuoy positioned as family antiseptic soap that is
affordable

Targeted
• Harmonious Villagers Positioning Differentiation
Market
Family Brand Integrity
Antiseptic Affordable
Frame of Soap
• Antiseptic Soap
Reference

Bra

ge
ma
nd

dI
Ide

an
nti
Point of

Br
• Affordable

ty
Differentiation

Reason-to- • Cheaper Price

Believe • Smaller Packages
POSITIONING
STATEMENT
For harmonious villager , Lifebuoy is the antiseptic soap that is affordable because it offers cheaper
prices and smaller packages

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 PROGRAM SELECTION
We should consider the pros and cons in every strategies

KKD RURAL OUTREACH MP PARTNERSHIP URBAN LIQUID

Rural small village hand wash Rural public school hand wash Urban public school hand wash
workshop & visit using bar soap program using bar soap program using liquid soap

Target Segment Harmonious villager Harmonious villager Prosperous Metropolitan

+ Objective fitted + Objective fitted - Objective unfit

Reach 8.500.000 4.500.000 1.500.000

+ Higher Reach - Lower Reach - Nuclear Family

Subject Housewives School children School children

- Secondary + Primary - unaware

Brand Presence Unilever multi-brand Partnership (no brand) One Brand

- Scattered exposure - Soft sell (low exposure) + High exposure

Sustainability No follow up 21-days follow up 21-days follow up

- Unsustain + Sustain + Sustain

Cost per contact 6.4 6.2 23.3

- Higher Price + Lower Price - Highest Price

Lifebuoy PP 8.6 13.5 3.5

- Moderate - Longest + Fastest

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 WHAT’S NEXT?
In order to achieve the behavior-change target, Lifebuoy
should…..
Allocated Lifebuoy Target in India

2010 2011 2012 2013 2014 2015

“Hand-wash”
“Hand-wash” behavior-
behavior-change
change reach 30 million 403 million people gap to be achieve
reach 17 million
people
people

Program Reach Estimated Duration of the Achievement Gap

Target/Year program

KKD Outreach 8.500.000 135.000.000 1 year 6% 94%

MP Partnership 4.500.000 135.000.000 1 year 3% 97%

Integrated Behavior-Change Marketing Effort

Pre-knowledgeable Knowledgeable Practicing Maintaining Advocacy

Awareness Educate Commitment Leverage

TVC Workshop Follow-up Program Word of Mouth

Banner Demonstration Monthly Visit Ambassador

“Global Hand-Washing
TVC “Chamki” MP Partnerships
Program”
KKD Outreach

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