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 Price
Launched as carbolic red Targeted lower & middle
disinfectant soap income group mainly the
Initially meant only for rural consumers
health & hygiene Moved on to high prices
Strong Brand Image. following the process of
Moved on to freshness , trading-up
beauty care, nature care
& deodorant
 Pricing Price Of Various Lifebuoy Products
vis-a-vis its competitors
Lifebuoy Inter Competitors Intra
Variants Competitors
Lifebuoy Godrej.no.1 (Rs.8), Breeze
(Total& Plus) Santoor (Rs.10) (Rs.8 for 100 gms.)
Rs. 12 for 90 gms
Lifebuoy DeoFresh Cinthol Liril (Rs.16),
(Rs.10) (Rs.13) Lux (Rs.13)
Lifebuoy Active Dettol (Rs.16), Rexona
Rs 12 Savlon (Rs.16) (Rs.13 for 100 gms.)

Lifebuoy clear skin Fair glow (Rs.10), Fair & Lovely(Rs.10),

(Rs.13) No marks (Rs.19) Dove(Rs.27),
Pears (Rs.20).

Lifebuoy Medimix (Rs.13), Hamam

Nature Chandrika (Rs.12) (Rs.13 for 100 gms.)
Rs. 13 for 90 gms)
 Promotion

Place Initially positioned as a male

Strong distribution brand then moved on to
channel mainly targeted family brand
rural market. CSR works - health
2000 suppliers, 80 programs for promotion to
factories,45 C & F make people aware about
agents,4000 stockiest, health & hygiene
1m direct outlet, 6.3 m Tandrusti ki raksha in 1992
total outlet Koi darr nhi in 2002
Yuvraj to endorse Lifebuoy
 Positioning Lifebuoy is positioned as a complete
family health soap.
How does the brand
differentiate itself from Concept- health for the entire family
its competition in the Tagline- Koi darr Nahi
mind space of the Also positioned as a value-for-
consumer money product, a soap that lasts
Total = mothers with long
active kids Recently, Lifebuoy also started using
DeoFresh= young ensure cleanliness and hygiene for
adults the entire community.
Nature = traditionalist Globally its positioned as a
mothers disinfectant.(a bar soap keeps u
Gold Care = sensitive away from germs)
skin
 The packaging of Life buoy has
changed from that of hard cover
Packaging wrapper specifically for men to soft
cover for the family
Distinct features
Benchmark with
Competition

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

Went Clear skin

global Life Buoy and acne
in 1911 Dispenser removal

Hand Mens Body

Sanitizer wash
introduced
 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
Sales Low
Low

Costs
Costs High
High cost
cost per
per customer
customer

Profits
Profits Negative
Negative

Marketing
Marketing Objectives
Objectives Create
Create product
product awareness
awareness and
and trial
trial

Product
Product Offer
Offer aa basic
basic product
product

Distribution
Distribution Build
Build selective
selective distribution
distribution

Promotion
Promotion Heavy
Heavy to
to entice
entice product
product trial
trial
 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
Sales Rapidly
Rapidly rising
rising

Costs
Costs Average
Average cost
cost per
per customer
customer

Profits
Profits Rising
Rising

Marketing
Marketing Objectives
Objectives Maximize
Maximize market
market share
share

Product
Product Offer
Offer extension,
extension, service,
service, warranty
warranty

Price
Price Penetration
Penetration strategy
strategy

Distribution
Distribution Build
Build intensive
intensive distribution
distribution

Promotion
Promotion Reduce
Reduce to
to take
take advantage
advantage of
of demand
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
Sales Peak
Peak

Costs
Costs Low
Low cost
cost per
per customer
customer

Profits
Profits
High
High
Marketing Maximize
Maximize profits
profits while
while defending
defending market
market
Marketing Objectives
Objectives share
share
Product
Product Diversify
Diversify brand
brand and
and models
models

Price
Price Match
Match or
or best
best competitors
competitors

Distribution
Distribution Build
Build more
more intensive
intensive distribution
distribution

Promotion
Promotion Increase
Increase to
to encourage
encourage brand
brand switching
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.
 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
Sales Declining
Declining

Costs
Costs Low
Low cost
cost per
per customer
customer

Profits
Profits Declining
Declining

Marketing
Marketing Objectives
Objectives Reduce
Reduce expenditures
expenditures and
and milk
milk the
the brand
brand

Product
Product Phase
Phase out
out weak
weak items
items

Price
Price Cut
Cut price
price

Distribution
Distribution Selective:
Selective: phase
phase out
out unprofitable
unprofitable outlets
outlets

Promotion
Promotion Reduce
Reduce to
to minimum
minimum level
level
 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

Any Questions??