Hindustan Unilever

Lifebuoy

Index
Sr no.
1

Topics

Page no.

Chapter 1: (a) Introduction of HUL

(b) History

(c) Vision

Chapter 2: (a) Introduction of lifebuoy

(b) History

Chapter 3: Mission and objectives

10

Chapter 4: Product Portfolio

11

Chapter 5: SWOT Analysis

14

Chapter 6: Strategies followed by the co

16

Chapter 7: Comments and suggestions

27

Bibliography

31

Acknowledgement
I would like to thank Ms. Rita Khatri and
Dr. Navin Punjabi for giving us the
opportunity to do a project on strategic
management. It really helped me to
understand the management working of
Hindustan Unilever and Lifebuoy better.

Chapter One
Introduction to HUL
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
Company with a heritage of over 75 years in India and touches the lives of two out of three
Indians.

HUL works to create a better future every day and helps people feel good, look good and get
more out of life with brands and services that are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos,
skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and
water purifiers, the Company is a part of the everyday life of millions of consumers across
India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin,
Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent,
Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.

The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736
crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the worlds
leading suppliers of fast moving consumer goods with strong local roots in more than 100
countries across the globe with annual sales of about 46.5 billion in 2011. Unilever has
about 52% shareholding in HUL.

History of HUL
Hindustan Unilever Limited (HUL) India's largest consumer goods company based in
Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls
52% majority stake in HUL. Its products include foods, beverages, cleaning agents and
personal care products.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as
Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength
of over 16,500 employees and contributes to indirect employment of over 65,000 people. The
company was renamed in June 2007 as Hindustan Unilever Limited.

Lever Brothers started its actual operations in India in the summer of 1888, when crates full
of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were
shipped to the Kolkata harbor and it began an era of marketing branded Fast Moving
Consumer Goods (FMCG).

Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and
its products are available in over 6.4 million outlets in the country. As per Nielsen market
research data, two out of three Indians use HUL products

Vision of HUL
Unilever products touch the lives of over 2 billion people every day whether that's through
feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh
and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

A clear direction
The four pillars of our vision set out the long term direction for the company where we
want to go and how we are going to get there:

We work to create a better future every day

We help people feel good, look good and get more out of life with brands and services
that are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big
difference for the world.

We will develop new ways of doing business with the aim of doubling the size of our
company while reducing our environmental impact.

We've always believed in the power of our brands to improve the quality of peoples lives
and in doing the right thing. As our business grows, so do our responsibilities. We recognise
that global challenges such as climate change concern us all.

Since HUL has many brands under it, I will be focusing only on one of their brands
which falls in the Personal Health Care category LIFEBUOY

Chapter Two
Introduction
Lifebuoy is a famous and distinctive brand of soap that was created by the Lever Brothers
soap factory in 1894. It was the first soap to use carbolic acid, which gave it a red colour and
strong, medicinal scent. Lifebuoy is still manufacture d today and the leading brand of soap
in many developing countries including India. Today Lifebuoy is sold in all over the World.
It is market leader in every market where it is sold. The desire to be clean, active and healthy
is intrinsic to every one irrespective of age or economic status. Lifebuoy understands this
need and champions the cause for hygiene and health around the world. An inspiring vision
for more hygienic, healthier and ultimately more vital communities is the driving force
behind the Lifebuoy brand. To realise this vision, Lifebuoy has looked to consistently
innovate and provide accessible hygiene and health products to a wide variety of consumers.
This vision also commits the Lifebuoy brand team to visible action, inspiring projects that
motivate consumers to improve their hygiene behaviour.

History

In 1894, William Hesketh Lever launched Lifebuoy in the UK as the Royal

Disinfectant Soap.

Lever grew up in industrialised Bolton, Lancashire, which was a typical English city
of the Industrial Revolution era, with thousands of people living in slums where
disease ran rampant. Epidemics of typhoid, dysentery andyellow fever were common
and infant mortality was exceptionally high

Cleanliness is next to godliness' was a common theme of reformist groups, which

demanded hygiene education and improved living conditions for the poor and
working classes. They also demanded a preventative approach to reduce disease and
illness that were primarily caused by unsanitary conditions

Lever was actively seeking the perfect formula for a soap product that couldcombat
germs and still be affordable to everyone. In what could be termed asa major
scientific breakthrough of the era, he found just that in carbolic acid.

The Brand went global in 1911 and began distributing in countries such as US ,
Germany , Switzerland , Canada , India etc.

In India:
Parent Company : HUL
Category : Personal Care Soap

Sector: FMCG

Tagline/ Slogan:

SOAP: Healthy hoga Hindustan; Lifebuoy hai jaha tandurusti hai waha
HANDWASH: "99.9% Germ Kill , In Just 10 Seconds

USP
Lifebuoy provides 100% better protection from germs as compared to ordinary soaps

KEY FACTS

Worlds No. 1 Selling Germ Protection Soap

Distribution across 50 lakh + stores across the country

Awarded the Bronze Global Effie for the Superfast Handwash campaign

Chapter Three
Mission
Lifebuoy, an undisputed market leader for 117 years, has a compelling vision to make 5
billion people across the world, feel safe and secure by meeting their personal care hygiene &
health needs

OBJECTIVE
Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions that
enable people to lead a life without fear of hygiene anxieties and health consequences.

STP
Segment
Personal Care Soap, Hand Sanitizer, Hand Wash, Talc

Target Group

All households, to provide a 100% anti-bacterial soap for complete protection

Positioning

Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions
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Chapter Four
Product Portfolio
Today, the Lifebuoy brand is more than the quintessential bar of red soap, and provides
hygiene and health for the entire family through a range of products like liquid hand wash
and specially designed body wash. Beyond ensuring daily hygiene and freshness, Lifebuoy
products also address special needs like anti-acne and skin fortification for an all around
cleansing experience.
1. HAND SANITIZER:

Lifebuoy Hand Sanitizer effectively disrupts bacterias cell membrane&

viruss outer coat thereby kills germs & viruses on your hands.

Proven To kill 99.9% Germs instantly

Proven to kill H1N1 virus

Dries quickly, is non-sticky and has soothing fragrance.

Has Moisturizer and Vitamin E to keep your hands soft and smooth

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2. BAR SOAP:
Has Moisturizer and Vitamin E to keep your hands soft and smooth. Lifebuoy Body
Wash provides deep cleansing of pores, protecting against the threeroot causes of skin
health problems clogged pores, over-drying, and infection-causing germs.

3. HAND WASH
Clean, germ-free hands are the key to good health, as ingestion of germs from
unhygienic hands at mealtimes is the most likely cause for common diseases.
Lifebuoy Hand Soaps offer hospital-strengthgerm protection, with a unique
formulation that generates a richlather. This provides an effective and hygienic wash
in everycorner of the hands and nails, at the same time leaving your hands pleasantly
fragrant.

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4. LIFEBUOY CLINI CARE

Germs may be getting stronger but Lifebuoy has also evolved in the fight against
infection. Clini-Care soaps have Activ Naturol Shield technology combined with superior
cleansing capabilities. These offer 10 times more germ protection than rival soaps as well
as providing 10 times more care to prevent skin damage and germ attack through
damaged skin

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Chapter Five
SWOT Analysis
STRENGHTHS

Strong Brand Portfolio

Strong Distribution Network

Over 16 million outlets all over the world

700 million Customer Base

Strong R&D of the company

Highly Skilled Human Resource

First soap to use carbolic acid, which gave it a red color and strong, medicinal scent

Wide portfolio for the Lifebuoy brand ranging which includes Soap, Hand Sanitizer
and Hand Wash

High consumer awareness for the brand of Lifebuoy

Most popular soap brand specially in the rural market

Excellent brand visibility and extensive distribution

WEAKNESS

Strong Competition

Changing consumption Pattern

High Advertising Costs

Lower market penetration in urban areas as compared to rural areas

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Initially positioned as a masculine soap, which was eventually turned as a family

soap.

Not been perceived as a beauty soap, and is mainly used just for hand washing

OPPORTUNITIES

Large domestic market in India over abillion population

More potential in rural markets

Changing Lifestyles & Risingincome levels, i.e. increasing per capital income of
consumers

The Lifebuoy Swasthya Chetana programme uses adirect consumer contact

methodology, and touches the lives of 70 million people in 18,000villages

Imparting education about importance of hand washing to prevent spread of ger

Used global epidemics like swine flu to further promote products for better hygiene
and protection

THREATS

Tax and regulatory structure

Mimic of brands

Entry of ITC in FMCG sector

Increasing cost of raw material

Competitor brands offering similar levels of protection

Considered to be a low-end product, and may find it difficult to move up in the

segment

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Chapter Six
Strategies followed by the company
INTRODUCTION
Lifebuoy has always been marketed as a tough cleaning soap for a tough man. (Of course,
the 2002 re-launch targeted Lifebuoy as a soap that brought good health to the entire family).
Lifebuoy has been seen as a value for-money product, a soap that is long-lasting. In a very
smart TV ad campaign, children are shown cleaning a street. The message put across is that
since these children are secure from ailments that are caused by a lack of proper sanitation
and hygiene, thanks to the fact that they use Lifebuoy, they are in a position to ensure
cleanliness and hygiene for the entire community. Thus, Lifebuoy not only ensures good
health and cleanliness for individuals, but healthy and productive communities as well.

The Lifebuoy Swasthya Chetana programme uses a direct consumer contactmethodology,

and touches the lives of 70 million people in 18,000 villages. A unique feature of this
campaign is that it utilizes multiple contacts, as opposed to other programmes which are
single contact in nature. Gushes the HLL spokesman, This programme aims to educate
people about the benefits of hand wash with soap, and how hand wash can help kill invisible,
disease causing germs. It is thus a marketing programme with a strong social cause of
improving the health and hygiene of rural India. The brand USP is, Lifebuoy provides 100%
better protection from germs as compared to ordinary soaps.

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1. Turnaround Strategy
Lifebuoy soap is a very old brand of bath soap in India, Life Buoy is an anti bacterial soap
and in the beginning it positioned itself on its antibacterial qualities, lifebuoy gained a
number of customers with this positioning, but then there comes the competition with the
Dettol soap.

All this put Lifebuoy out of lime light and to survive in market, Lifebuoy positioned itself on
price it became low price antibacterial soap. This strategy may have boosted short term sales
of Lifebuoy but it lost its brand value and credibility in the minds of customers. Lifebuoy
needed to reposition itself on quality rather than price.

The repositioning campaign of Lifebuoy was started at 2008, but it became more prominent
and became effective in 2009, Lifebuoy along with the advertisement has improved its
quality and fragrance, most of the people had shifted from lifebuoy because it was low
quality and it smelled terribly, as Lifebuoy has improved its quality all it needed to run an
effective advertisement campaign to get the customers attention. The advertisement team of
Lifebuoy came up with excellent theme Healthy Hoga Hindustan and it is targeting parents
which is their target market, Lifebuoy made very effective ad and it also used fear strategy
(which is effective in case of antibacterial soap). This has enabled Lifebuoy to get more and
more customers. Now a days, Lifebuoy is everywhere in Television, Radio, Newspapers and
Billboards, Lifebuoy is running a huge campaign to promote itself which is very necessary in
case of repositioning the brand.

17

With the help of marketing department and advertisement, Lifebuoy has successfully
repositioned itself as a quality antibacterial soap with better fragrance and more durability.
Many companies try to reposition themselves when they see market trend shifting but most
fail to do so. In case of Lifebuoy it has been successful. The interesting thing about this
campaign is that Lifebuoy is running the same campaign in Pakistan and in India as is done
by Unilever, this suggest that Lifebuoy is considering India and Pakistan as the similar
market segment.

2. Diversification Strategy
Although Unilever itself is a part of a Multi market, but since we are talking about the
product Lifebuoy we can say that it is using a multi market strategy as well because it has
both soap and shampoo, not these two only but they have others anti bacterial liquid baths as
well opening a way for Lifebuoy to be a multiple product. Lifebuoy has expanded their
product range by launching closely related products, this is called horizontal diversification.

3. Stability Strategy
Lifebuoy is one of the old products of Unilever which has more than a 100 years
of successful journey, we can simply say that Lifebuoy is the early entrants
internationally and in India it is the first-in in its kind of soaps.

18

By adopting the first-in strategy, Lifebuoy has captured the maximum share of
the market. Over 60 years in India we guess there is not a single home that didnt
use it. Lifebuoy has taken the risk of the first-in and consequently got one of the
biggest markets in Asian countries by providing its quality and sustained priced
product to both rural and urban areas of India

4. Market Commitment Strategy

Being the first-in in the market Unilever has shown strong commitment with its brand of life
time i.e. Lifebuoy and that commitment to its brand has really foster the growth of Unilever
as well as its brand of Lifebuoy. But from the recent decade Unilever is no more showing the
strong commitment to Lifebuoy because over the period of time many of the competitors
came in the market with new innovative product, better market strategies and stronger
commitment. In the present scenario, Unilever is just showing an average commitment to its
brand of Lifebuoy which has really put its brand on the back foot

5. Modernisation Strategy
Lifebuoy has unveiled a breakthrough technology in germ protection - Activ Naturol Shield.
This technology has been launched in India through Lifebuoy clini-care10 with proven 10
times better germ protection compared to leading germ protection soaps.

The invention, attributed to an Indian scientist, Dr. Amit Chakrabortty, Global HeadResearch on Hygiene and Water, Hindustan Unilever, and his team. The HUL R&D centre in

19

Bengaluru, India, was the lead research centre for this breakthrough technology. This
technology is being launched first in India, through Lifebuoy clini-care10.
The Activ Naturol Shield technology is a combination of naturally occurring substances that
when combined with the best of technology in cleansing, provides Ten Times better
protection against disease causing pathogens. Lifebuoy clini-care10 addresses all the four
aspects of complete germ protection, which are:

Faster and better reduction of a wide range of germs in real-life washing time

Superior germ reduction from the skin in actual hand-wash studies

Longer lasting protection to reduce germ re-growth on skin

Milder and superior skin care to prevent skin damage and germ attack through damaged skin

Lifebuoy has always been at the forefront of R&D in health & hygiene. The Activ Naturol
Shield technology in Lifebuoy clini-care10 has also beenendorsed by the British Skin
Foundation (BSF) and tested and validated at various international (recognized and
accredited) laboratories.
Lifebuoy clini-care10 is available in two variants Lifebuoy clini-care10 Complete and
Lifebuoy clini-care10 Fresh.

6.Tie-Ups for Social Resposibilty

Lifebuoy aims to bring safety, security and health to five billion people, through the active
promotion of hand washing with soap.

By the end of 2011, our Lifebouy handwashing campaigns had reached 48 million people.

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Dont forget the soap when washing your hands. It helps prevent the spread of germs and
reduces the risk of disease.

GLOBAL PARTNERS FOR SOCIAL MISSION

London School of Hygiene and Tropical Medicine (LSHTM)

LSHTM provides scientific, research and technical expertise on behaviour change and
handwashing impact effectiveness. LSHTM undertakes handwashing research and
programme evaluations of Lifebuoy programmes.

The Global Public-Private Partnership for Handwashing with Soap (PPPHW)

Lifebuoy is proud to be one of the founding members of the global Public-Private Partnership
for Handwashing with Soap which aims to save children's lives by promoting the awareness
of this simple practice and raising the profile of handwashing globally.

21

USAID MCHIP (Maternal and Child Health Integrated Programme)

MCHIP focuses on the reduction of child mortality in the 30 USAID high priority countries.
Lifebuoy is working with them to promote hygiene behaviour change amongst new mothers
and birth attendants in these countries to reduce child mortality rates by 25%.

Millennium Village Project

Our newest partner, the Millennium Villages Project teaches handwashing across rural Africa
in a bid to end extreme poverty. Using the latest research and technology, it helps some of the
countrys

poorest

communitys

break

free

22

of

the

vicious

cycle

of

poverty.

Healthmap & Boston Childrens Hospital

Lifebuoy is proud to partner with Healthmap and Boston Childrens Hospital, the worlds
largest pediatric medical centre. Healthmap delivers real-time global updates of emerging
public health threats, keeping you and your family one step ahead of infections.

Oxfam

Oxfam is an international NGO specialising in emergency and development work around the
world. Lifebuoy supports Oxfam in times of natural disaster by helping to distribute relief
kits, hygiene promotion materials and soap to those in need.

23

Partners in Health

Partners in Health are an NGO that provides effective medical care to all parts of the
developing world. Lifebuoy joined forces with PiH, donating hygiene products during the
2010 Haiti cholera outbreak and during times of natural disaster since.

PSI (Populations Services International)

PSI partners with Lifebuoy to deploy behaviour change schools programmes. The current
focus is deployment in sub-Saharan Africa. Lifebuoy also supports PSI at the time of natural
disasters with appropriate hygiene promotion materials and soap.

24

Red Cross

The Red Cross is an international NGO which focuses on emergency and long-term relief in
disaster zones. Lifebuoy partnered with Red Cross during the 2011 Brazil landslides, and
supports them by providing appropriate hygiene aid at times of natural disaster.

Save the Children

Save the Childrens slogan is No child born to die. They protect children in 120 countries,
fighting for their rights and helping them fulfill their long-term potential. Lifebuoy helps
Save

the

Children

to

distribute

hygiene

25

aid

in

times

of

natural

disaster.

UNICEF

UNICEF works with families, communities and governments in over 190 countries to protect
and promote childrens rights. Partnered with Lifebuoy, UNICEF runs Global Handwashing
Day

awareness

activities

and

handwashing

education

programmes

in

schools.

Water & Sanitation for the Urban Poor (WSUP)

Lifebuoy works with WSUP to expand the impact of its handwashing programmes through
promotional campaigns in Bangladesh and Kenya. WSUP and Lifebuoy have jointly
launched school programmes to change the handwashing habits of children and their families.

26

Chapter Seven
Comments & Suggestions
Market Commitment Strategy
MY EVALUATION: In evaluating the market commitment strategy it is necessary for
the Unilever to again show strong commitment to its product. Although Unilever has well
realized the situation and make changes in its strategies which are making some changes
in the consumers mind but we think there is more need required to retrieve its image of
better quality at lower price in the customers mind

Diversification Strategy
MY EVALUATION: In evaluating this multimarket strategy, one comes to know that
Unilever is well using its product of Lifebuoy in promoting its business. It has diversified
that brand into different categories to capture every part of the market. This strategy is
helping Unilever in a way that due to variety of products it not only saves the existence of
a single product but also saving other products which are complement to it.
Comments
I have tried to fully analyze the existing strategies of Lifebuoy, what I find from this detail
analysis are discussed as improved version of Lifebuoy where suggestions are given from
my side and what adjustments can be made in the present strategies to improve the product
performance and overall image of the product in the customers mind.

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In evaluating the position of the Indian market, Lifebuoy is lacking in its market
Geography strategy as it is more common in rural areas of the country where more of
the urban citizens keep it as a low level brand

The major challenge Unilever has to face is its commitment to its old brand
of Lifebuoy. Unilever got a major setback when Reckitt Benckiser introduced Dettol
through a heavy media campaign. Unilever has tried to compensate that through
promotional program of Healthy Hoga India but still it needs a strong and
continuous commitment to this product.

Lifebuoy has well repositioned itself but still there is need to change the image that it
is a low quality low price product.

Suggestions For New Campaigns

Lifebuoy is a century old brand and is now synonymous with health. In this case study, i have
analyzed the current position of its Hand wash version, in certain key markets such as India,
Malaysia, Japan and Singapore.
My basic idea was to create an emotional connect with people. Hence, i came up with a
revolutionary habit changing campaign. The basis of this idea is continuous trials for a
prolonged period of time, backed with prolonged visibility campaigns. I intend to get in direct
contact with the customers, and permanently convert them into Lifebuoy users. The consumer
today is more rational while choosing a product. If the consumer is not convinced with a
certain piece of information, he/she may just move on. Ample interaction is required to
convince the consumers to change their routine choices.
To implement this, i have proposed two campaigns along with branding at key touch points.
With these efforts, i believe, i will be able to generate significant Word of mouth promotion

28

(Evangelism Marketing) and revolutionise Lifebuoy. Apart from this, i have identified key
triggers and barriers to the category based on my consumer interaction. Talking about
barriers, a lot of consumers actually like the fragrance of Lifebuoy, but the fragrance of
Dettol reminds them of hospitals and gives them a sense of assurity. Another barrier is that
people perceive Lifebuoy to be an inferior product and consumers attributed this to its
packaging, but i believe there are certain underlying reasons for this perception, which i need
to understand. I have also managed to capture a key consumer insight, which i have tried to
leverage, by associating it with my new variant.
For my first campaign, i decided schools as my location, since i needed a place where i could
address a significant number of women at the same time. As a part of this model, i have also
decided to target children, as i feel children these days are key influencers in a family, when
it comes to personal care products, apart from having an accurate brand recall ability. This
campaign has been called EMPOWERING THE TEACHERS
My second campaign is a nationwide WOMENS WALK-A-THON, which will be hosted
in 8 cities over a period of 8 months. This campaign will be associated with a cause, and the
basic idea is to significantly increase the brand recall value as against my competitors.
To back these campaigns, i believe , i need continual branding at key touch points like buses ,
malls and hospitals. To further back my efforts, i need to have strategic focus on promotions.
I recommend, that a larger part of the investment be done on consumer promotions as
compared to trade promotions, and i have identified MTOs as a key channel for this.
Now, elaborating on my new variant, i plan to introduce LIFEBUOY-VITALISE, with lime
extracts. I have chosen Lime because lime was the preferred fragrance during my consumer
research.

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Talking about the other Asian Nations, the penetration of Lifebuoy in Japan is very low. If i
consider liquid soap market share in Malaysia and Singapore, Lifebuoys share is 10% in
both the countries, viz a vis Dettol which has a share of 11% in Malaysia and 12% in
Singapore. (Source AC Neilson 2010). Major competitor is Johnson and Johnson and other
local brands in both the countries.
Malaysians are, on average, the worlds biggest users of social networks with more friends
than any other country in the world. Hence Social Media could be used aggressively for the
promotion of Lifebuoy. It is forecasted that the anti bacterial properties in soaps are the main
selection criteria when it comes to Singaporean consumers selecting a brand for the house
hold. Emphasis on the same would be a major boost to the promotion activities being carried
out by Unilever in Singapore.

Overall, it is possible that the user of a particular brand may not be the one buying the
particular liquid soap. Therefore it is very important that marketing strategies cater to this
demographic change. Conversely, to retain and sustain customers whose families used these
products, reinforcing campaigns may prove valuable.

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Bibliography
Books:
(1) Strategic Management by Michael Vyaz
(2) Strategic Management by Kale Karnavat

Websites:

(1) http://en.wikipedia.org/wiki/Strategic_management
(2) http://www.hul.co.in/
(3) http://en.wikipedia.org/wiki/Hindustan_Unilever
(4) http://articles.economictimes.indiatimes.com/2011-03-23/news/29178563_1_lifebuoyglobal-brand-soap
(5) http://articles.economictimes.indiatimes.com/keyword/lifebuoy
(6) http://www.lifebuoy.com/pagenotfound.aspx?aspxerrorpath=/gurudwara.html.aspx
(7) http://www.unileverme.com/brands/personalcarebrands/lifebuoy.aspx
(8) http://www.ibscdc.org/Case_Studies/Marketing/Marketing%20Strategies/MM0026.htm

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