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Lifebuoy

Product life cycle & Marketing

Strategies

By:

RAHUL PAGARIA

SHUBHAM SINGH

AKASH JAISWAL

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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 ofthe country making it the largest selling soap brand in the

world

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Marketing mix

Product Launched as carbolic red

disinfectant soap

Initially meant only forhealth & 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

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Pricing

Lifebuoy

Variants Inter Competitors IntraCompetitorsLifebuoy

(Total& Plus)

Rs. 12 for 90 gms

Godrej.no.1 (Rs.8),

Santoor (Rs.10)

Breeze

(Rs.8 for 100 gms.)

Lifebuoy DeoFresh

(Rs.10)

Cinthol

(Rs.13)

Liril (Rs.16),

Lux (Rs.13)

Lifebuoy Active

Rs 12

Dettol (Rs.16),

Savlon (Rs.16)

Rexona

(Rs.13 for 100 gms.)

Lifebuoy clear skin(Rs.13)

Fair glow (Rs.10),No marks (Rs.19)

Fair & Lovely(Rs.10),Dove(Rs.27),

Pears (Rs.20).

Lifebuoy

Nature

Rs. 13 for 90 gms)

Medimix (Rs.13),

Chandrika (Rs.12)

Hamam

(Rs.13 for 100 gms.)

Price Of Various Lifebuoy Products

vis-a-vis its competitors

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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

Promotion

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

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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)

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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

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Brand Evolution Timeline

Launched in

1894

1962 Whiteversion

introduced

Launched as a familysoap in 2002

Went

global

in 1911

Hand

Sanitizer

introduced

Life Buoy

Dispenser

Mens Body

wash

Clear skin

and acne

removal

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Product life cycle

Product life cycle is the stages over which a product develops &

affects thesales and profits over time.

The five stages of each product lifecycle are: Product development

Introduction

Growth

Maturity Decline.

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Sales

Costs

Profits

Marketing Objectives

Product

Low

High cost per customer

Negative

Create product awareness and trial

Offer a basic product

Distribution Build selective distribution

Promotion Heavy to entice product trial

Summary of Characteristics, Objectives, & Strategies

Introduction Stage of the PLC

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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.

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Sales

Costs

Profits

Marketing Objectives

Product

Price

Rapidly rising

Average cost per customer

Rising

Maximize market share

Offer extension, service, warranty

Penetration strategy

Distribution Build intensive distribution

Promotion Reduce to take advantage of demand

Summary of Characteristics, Objectives, & Strategies

Growth Stage of the PLC

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1931-1969By 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.

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Marketing strategies:

Product strategy Introduction of newmodels.

Price and promotion strategy Penetrating

Pricing(rapid penetration)

Distribution Strategy- increase in distribution

coverage

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Sales

Costs

Profits

Marketing Objectives

Product

Price

Peak

Low cost per customer

High

Maximize profits while defending marketshare

Diversify brand and models

Match or best competitors

Distribution Build more intensive distribution

Promotion Increase to encourage brand switching

Summary of Characteristics, Objectives, & Strategies

Maturity Stage of the PLC

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1970-1996

By 1970, sales grown but at lower rate, Witnessedsqueeze 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 dueto liberalisation.

Lifebuoys monopoly was challenged by competitors.

In 1992, Nirma Launch Nirma Bath affects lifebuoy.

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Marketing Strategies:

Product strategy Product Modification

Price & Promotion StrategyPenetration

Pricing

Distribution Strategy Focus On Profitable

Segment & focus on Important Channels Of

Distribution

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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

Distribution Selective: phase out unprofitable outlets

Promotion Reduce to minimum level

Summary of Characteristics, Objectives, & Strategies

Decline Stage of the PLC

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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 0n30.65%(www.livemint.com)

Low pricing results perception that lifebuoy is

only for poor people and those who belong tothe lower middle class thought by urban

people.

Rejuvenate its lifecycle

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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.

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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)

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CSR works

In 2001,HLL put 14 stalls at Maha kumbh Mela tospread 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.

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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 inMumbai.

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.

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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 asdecline phase & therefore cut the advertising budget

and thus making a further decline.

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THANK YOU

Any Questions??