Case study of lifebuoy with hul introduction

CASE STUDY OF LIFEBUOY

Presented By:Himani Dubey

“INDIA IS A CENTRE OF INTEREST FOR LARGE MULTINATIONAL COMPANIES”

With these lines we focus on the basic requirements of the people of the country that are rising day by day so as to meet this demand the large MNC’s are rising on the front step so as to put their roots in and expand their empire, one of these is the HINDUSTAN UNILEVER LIMITED (HUL).The largest FMCG industry that step from in India.

The HUL stepped with some of its top most of its product from the inter-national market.

INTRODUCTION TO HINDUSTAN UNILEVER LIMITED

India’s largest fast moving consumer goods company

In India since 1895 Formally incorporated in 1956

• A subsidiary of Unilever (51.5%) A $ 2.2 billion company

• 16% operating margin• Market Capitalization: $14 billion

Market Leader across categories• Fabric wash, Personal wash, Dish wash, hair wash, skin

applications, Talcum powders, packet tea, Jams• Number two: Toothpaste, instant coffee, ketchup

JOURNEY OF HINDUSTAN LEVER LIMITED TO HINDUSTAN UNILEVER LIMITED

Hindustan Unilever Limited (HUL) is an Indian consumer based company which is based in Mumbai,Maharashtra

Earlier Hindustan Unilever was known as Hindustan Lever Limited.

The companay changed its name in year 2007.

Present Chairman HARISH MANWANI Present CEO and MD NITIN PARANJPE

1888 Sunlight soap introduced in India1895 Lifebuoy soap launched; Lever Brothers

appoints agents in Mumbai, Chennai, Kolkata and Karachi

1902 Pears soap introduced in India1905 Lux soap and Lux flakes introduced1913 Vim scouring powder introduced1930 Unilever is formed on January 1st through

merger of Lever Brothers and Margarine Unie1941 Agencies in Mumbai, Chennai, Kolkata and

Karachi taken over; Company acquires own sales force

JOURNEY AT GLANCE

2001 With the goals of improving hygiene, fighting disease and generating rural incomes for small communities, Project Shakti is launched as a pilot in Andhra Pradesh

2002 Yashodadham, a village reconstructed in Kutch district of Gujarat is dedicated to

1,100 residents, a year after their homes were wrecked by a devastating ear thquak

2005 Management Committee formed, organisation structure simplified

2007 Name formally changed to Hindustan Unilever Limited

FOOD PRODUCTS

HOME CARE PRODUCTS

PERSONAL CAREPRODUCTS

WATER

BRAND PORTFOLIO

SWOT ANALYSIS OF HUL STRENGTH

1. HUL is a part of the Unilever group, hence strong brand equity2. It has over 15000 employees3. Reach 6.4 million retail outlets which includes direct reach to over 1.5 million retail outlets4. Two R&D centres in India in Mumbai and Bangalore5. Products with presence in over 20 consumer categories with over 700 million Indian consumers using its products6. As a part of CSR, HUL has initiatives like project Shakti, plastic recycling, women empowerment etc

1. Market share is limited due to presence of other strong FMCG brands2. HUL products has stiff competition from big domestic players and international brands

OPPORTUNITY 1. Tap rural markets and increase penetration in urban areas

2.Mergers and acquisitions to strengthen the brand3.Increasing purchasing power of people thereby increasing demand

THREATS 1. Intense and increasing competition amongst other

FMCG companies2.FDI in retail thereby allowing international brands3. Competition from unbranded and local products

WEAKNESS

1. Marico 2. L'Oréal 3. Nirma Ltd 4. ITC 5. Colgate-Palmolive 6. Procter and Gamble 7. Dabur

COMPETITORS OF HUL

1894- William Hesketh Lever launched Lifebuoy in the UK as the Royal Disinfectant Soap

Lever discovered carbolic acid as he sought the perfect formula for soap that could combat germs and still be affordable to everyone

INTRODUCTION TO LIFEBUOY

Officially launched in India in 1935 India’s oldest personal wash brand Always stood for health and hygiene,

delivered through germ protection Sales on more than 5bn per day Had stagnant market share Stood for its health – plate-form Was brick red in color with carbolic

ingredient

OFFICIAL LAUNCHED IN INDIA

• New curved shape• An easy grip’ and a modern look• Four choices – Lifebuoy Strong, Lifebuoy Fresh, Lifebuoy Gold and Lifebuoy Naturals

2004 RELAUNCH OF SOAP

LIFEBUOY BAR SOAPS Mothers are the true experts when it comes to

their family’s health. These six variants help you protect your family from the 10 infection causing germs and stay one step ahead of them.

Lifebuoy Totalprotect Lifebuoy Mildcare Lifebuoy Naturepure Lifebuoy Activfresh Lifebuoy Vitaprotect Lifebuoy Moistureplus

Lifebuoy Clear Skin provides specialist protection from acne, which results from oil and dirt coming together. Mineral clay or "multani mitti" absorbs the oil from your skin, while washing away germs and dirt to greatly reduce the incidence of acne. In fact, Lifebuoy Clear Skin is proven to reduce acne by up to 70% in six weeks, guaranteeing visibly clearer skin.

LIFEBUOY CLEAR SKIN

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 wash offers germ protection, with a unique formulation that generates a rich lather. This provides an effective and hygienic wash in every corner of the hands and nails, at the same time leaving your hands pleasantly fragrant.

Lifebuoy Total Lifebuoy Care Lifebuoy Nature Lifebuoy Activfresh

LIFEBUOY HANDWASH

Everyday, dirt and pollution blocks pores, providing a fertile breeding ground for harmful germs, ultimately resulting in various skin problems. Lifebuoy Body Wash provides deep cleansing of pores, protecting against the three root causes of skin health problems – clogged pores, over-drying, and germs.

Lifebuoy Totalprotect Lifebuoy Mildcare Lifebuoy Naturepure Lifebuoy Activfresh Lifebuoy Vitaprotect Lifebuoy Moistureplus

LIFEBUOY BODYWASH

Lifebuoy Hand Sanitizer effectively disrupts bacteria’s cell membrane & virus’s outer coat thereby kills bacteria & inactivates viruses on your hands.

Proven to instantly kill 99.99% germs without water.

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. Two variants:

Lifebuoy Total Lifebuoy Care

LIFEBUOY SANITIZER

At the Kumbh Mela 2013 where all big players were trying to sell their respective products, some way or the other, Hindustan Unilever Limited promoted Lifebuoy Soap through Rotis in an innovative manner.

Allahabad where Kumbh Mela 2013 took place – is a dusty and dirty place during the festival, and maintaining hygiene was something which was not on the top, in their list. Rather than displaying the Kumbh with banners and outdoor advertising, HUL preferred a new medium to carry the anti diarrhea messages.

Hindustan Unilever Limited had an idea: What better way of reminding people to wash their hands than just as they are about to eat? The company along with the creative agency, Ogilvy had partnered with more than 100 Dhabas and Hotels at the mela site and used heat-stamped device to print a message on 2.5 million fresh pieces of rotis. The message said, simply, “Lifebuoy Se Haath Dhoye Kya?” (Have you washed your hands with Lifebuoy?)

LIFEBUOY TARGETTING RURAL MARKET

Photograph taken at Kumbh Mela

Roti being the staple food, and the only way to eat it is with your hands. The message on roti was impossible to miss or ignore. It’s sensible to expect that some will remember the message every time they sit down to eat.

This stamped message gets the consumer’s attention at the exact time when hand washing is critical – “Right when the person sits down to eat roti with his hand

STRENGTH1. First soap to use carbolic acid, which gave it a red colour and strong, medicinal

scent.2. Wide portfolio for the Lifebuoy brand ranging which includes Soap, Hand Sanitizer and Hand Wash.3. High consumer awareness for the brand of Lifebuoy.4. Most popular soap brand specially in the rural market.5. Excellent brand visibility and extensive distribution.

WEAKNESS2. Lower market penetration in urban areas as compared to rural areas3. Initially positioned as a masculine soap, which was eventually turned as a family

soap.4. Not been perceived as a beauty soap, and is mainly used just for hand washing

SWOT ANALYSIS OF LIFEBUOY

1.The Lifebuoy ‘Swasthya Chetana programme’ uses a' direct consumer contact’ methodology, and touches the lives of 70 million people in 18,000villages2. Imparting education about importance of hand washing to prevent spread of germs3. Used global epidemics like swine flu to further promote products for better hygiene and protection

THREATS1. Competitor brands offering similar levels of protection

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

OPPORTUNITY

Hindustan Unilever product Lifebuoy”s created a Dynamc revolution ,,in its own productline.. its mission was to make a numerous Indians feel safe regaurding their health and hygiene,,

Their basic target was to focus the 70% of the population that resides in the Rural area of India..

. That faces a vast no. of health issue Moreover it relaunched the packages in a small

low priced sets that came in the hands of the daily earners like the village people who do not possess a fixed source of income..

From T.V. advertisements to the tongue of a common man,, “LIFEBUOY” ..became a most used adjective by a common man..

SUMMARY OF CASE STUDY

What are the challenges faced by the HUL in rural India,,and what strategies were adopted by the company??..

• Being a no of FMCG consumer goods prevailing in market the HUL Lifebuoy also faced some basic problems.

• Introduction of a new product in market where the varieties are already prevailing..

• Pricing of the product keeping in mind both divisions of the society The Rural as well as The Urban..

• Focusing the target,customers..• Single distribution channel..

ANSWERS TO THE QUESTIONS

• HUL created an impact by massive rural campaigning,, focusing on the objective of health & Hygiene.

• They re launched the soap not as a carbolic toilet soap,, but as a health product.

• Moreover keeping in mind the concept of daily earning of the rural India they launched the product in small packages with low price,, so as to ascertain that their particular product reaches every single hand..

Methods adopted by the company to tackle the problems..

• A BEST BUSINESS IS THE ONE THAT,,MAKES THE POOR ITS CUSTOMERS..

• With these very lines the HUL focused on the major sector i.e. the RURAL INDIA, and made it its priority,,with a population percentage of almost 70% and covering them lead to a monopolitic reign over the FMCG industry…

Entering into the Rural India has proved viable option for HUL..Comment..!!

THANK YOU