Abstract:

The case study helps in understanding the difference between a product and a

brand. It also enables to study the behavior of a product during various stages of its

life cycle. The current competitive marketing environment during the new

millennium is forcing managers to understand the needs of modern consumers and

reevaluate the changing opportunities and threats in an evolving global marketing

place. The concept of Product Life Cycle (PLC) since its inception in the early

1950s, gained significant recognition as a tool for effective marketing strategy in

understanding the behaviour of product on sales, profits, 4P’s of marketing and

consumer approval.

Since inception in late 19th century, Lifebuoy, was a nimble and good citizen

brand of India, reaching millions of rural customers with a promise of ‘health and

hygiene’ as a platform of its business. Its famous advertising jingle, tandurusti ki

raksha karta hai Lifebuoy… was so famous that it enabled the brand ‘Lifebuoy’ to

be perceived as a ‘red carbolic soap’ for several decades. The brand passed through

prolonged stages of growth and maturity during most of the second half of 20th

century and was faced with a decline stage during early 21st century with sales

falling at the rate of 15%–20% per year. The downward trend of Lifebuoy carbolic

soap sales made Hindustan Lever Ltd., to withdraw the product category during

2002 and rejuvenate the brand with prudent marketing strategies by optimally

utilising the brand image. This case study analyses how Lifebuoy managed to

extend the brand life cycle.

Pedagogical Objective:

To understand the concept of product in product life cycle and brand life cycle

To analyse various stages of Lifebuoy’s life cycle during 20th century

To understand how the strategies of brand rejuvenation helped in extending the

life cycle of Lifebuoy.

Keywords : Lifebuoy; Product Life Cycle; Brand Life Cycle; Product; Brand;

Marketing Strategies; Hindustan Lever; Indian Soap Industry; Carbolic Soap;

Lifebuoy Swasthya Chetna; Brand Rejuvenation; Brand Management; Extending

the product life cycle; Stages in PLC; Repositioning, Marketing Management;

Marketing Mix; Market Segmentation; Product Life Cycle; New Product

Development; Consumer Behavior; Marketing Case Studies; MBA; Marketing

Course for MBA Marketing Course Case Map; Course Case Map; Case Map

Contents:

The Beginning of Lifebuoy’s Life Cycle

Lifebuoy's Life Cycle Changes in India

A New Life Line in Lifebuoy’s Life Cycle

Design and communication strategy for Lifebuoy’s re-launch

Rural India has ample of opportunities all waiting to be harnessed for the much-

needed volumes. Not astonishingly, it has become the latest marketing catchword

for most FMCG (Fast Moving Consumer Goods) majors. Some of the requisites

for making an impression in the rural market include:

1) Strong distribution channel

2) Minimum profit margin

3) Simple marketing message

4) Lesser-priced packs to increase affordability

5) Packaging in smaller units and localised design that attracts consumers

6) Convenience of storage while use

7) Thorough knowledge of the village psyche

In brief, the strategy revolves around what attracts rural consumers to a product.

Hindustan Lever Ltd. (HLL) is one of the few FMCG’s to be highly successful in

rural India. It has been a pioneer in reaching out to the smallest of villages with

innovative products. HLL is also open to the idea of building rural-specific brands

since it will only dispel the marketing media effort for the brands. Today, HLL’s

brands have become household names. No one knows Indian consumers better

than HLL. The company has access to both global and local research, technology

and development teams. It is fully supported by its nation-wide manufacturing and

distribution network.

HLL is India's largest marketer of home & personal care products, foods &

beverages. Recently, it launched “Pureit”, which is an in-home water purification

system that gives water ‘as safe as boiled water’. It is also the largest exporter of

branded FMCGs, marine products, basmati rice and one of the global players in

castor.

When we speak about HLL, the first name that comes to our mind is Lifebuoy. It

was sold in India as early as 1895, but was officially launched and marketed from

1935. For over 100 years, Lifebuoy with its distinct perfume and catchy jingle was

associated with health and well-being, making it the world’s largest selling soap

brand. Its ads carried the message that Lifebuoy washed away germs and kept one

protected and healthy.

Lifebuoy is among HLL's power brands which contributed to nearly 30% of the

company’s detergent turnover and was a leader in the carbolic segment with almost

95% market share. It went through a major re-launch for the first time in 1964 with

a change in product formulation, shape and packaging. In mid 2001, HLL then

launched Lifebuoy Active and Lifebuoy Extra Strong. However, these launches led

to a minimal turnaround. For nearly 107 years, the brand hadn't undergone a major

restructuring and repositioning. The sales were declining since consumers were

shifting from carbolic based soaps to beauty soaps with better fragrance and lather.

The decline of the brand, prompted HUL to re-think its marketing strategy.

Lifebuoy underwent a major turning point in its history with the re-launch in 2002,

2004 and again in 2006. The re-launch was done to beat the slow-moving sales. To

register positive preference among consumers, HLL challenged everything that

Lifebuoy stood for.

Lifebuoy is now an entirely new mix with a superior formulation, fragrance, lather

profile and a contemporary shape. It offers an improved bathing experience and

skin feel. The new Lifebuoy is targeted at today’s astute housewives who seek

family health protection. It made a thoughtful shift in positioning from being a

male soap, champ of health to a family soap with a more reliable health protection

against germs for the entire family.

The new range includes Lifebuoy total, Lifebuoy deofresh, Lifebuoy nature,

Lifebuoy care, Lifebuoy activ fresh, Lifebuoy International Plus, Lifebuoy

International Gold, etc. Apart from this, Lifebuoy also offers specialised products

like Lifebuoy HandWash and Lifebuoy Clearskin, which provides treatment and

protection against acne.

HLL did huge rural campaigning using the idea of hygiene as a podium to

reposition its brand. The company devised a strategy to ensure its focus on family

health themes via TV and print campaigns in the rural markets. They conducted

consumer education exercise using "Germ tests" through multimedia. They also

explored the opportunity to spread message during World Health Day. HLL also

launched Lifebuoy Swashthya Chetana, the first single largest rural health and

hygiene educational program. The campaign aimed at educating children and

community about the threat of unseen germs and maintaining good health through

practice of basic hygiene.

HLL used innovative communication tools at melas, festivals, haats, etc. to spread

awareness about hygiene and health by product demonstrations. These techniques

were used in order to change the hand-washing and bathing habits in rural India.

For example, people in mela were asked to put their hands below a special camera

where they could see the germs on their hands and were asked to wash their hands

with Lifebuoy and see the difference. Hand-carts were also displayed at the

company’s stall for attracting more people.

Ideas like putting stickers on hand pumps, walls of the wells, putting tin plates on

trees surrounding the pond were some of the innovative media utilised by

Lifebuoy. The idea was to market the product not only at the point of purchase but

also at the time of consumption. Other media techniques used were shop-fronts and

cinema van operations having films and audio cassettes with songs and dance

sequences from popular films that comprised ads of HLL products during breaks.

The reach of conventional media is not that effective in rural markets. Moreover, it

is not always viable to cover all these markets due to high costs involved. Yet,

these markets are vital since the growth potential is high. Operation Harvest served

as a medium to augment the role of conventional media in rural India and in the

process built relations and loyalty with consumers.

HLL has always been at the front line of trying out with innovative schemes to

reach rural consumers. It deliberately introduced small-sized packs of Lifebuoy

targeted at rural markets. Cross company product mixes were also offered to lure

consumers. To induce growth, HLL dropped the prices of its products and has been

also trying to upgrade its consumers by cannibalising its own brands.

Rural retailers and quick product availability influence the purchase decision of

rural consumers. HLL therefore undertook projects to enhance the rural supply

chain by a network of sub-stockists and 'Project Shakti' in partnership with the

Self-Help Groups of rural women. These Self-Help Groups acted as direct-to-home

dealers. In rural India, women are the catalyst of change and that is why Project

Shakti kept women in focus. It is they who give Shakti its strength. Project Shakti

has proved to be a great marketing venture for HLL since it works in both terms

which is promotion as well as a distribution network with social welfare benefits.

The model created a win-win partnership between HLL and its consumers, some of

whom depended on the organisation for their livelihood and helped building a self-

sustaining virtuous cycle of growth for all. Another good initiative taken by HLL

under Project Shakti is `I-Shakti', an IT-based rural information facility that

provides solutions to major rural needs such as agriculture, education, vocational

training, health and hygiene.

Rural markets are still evolving and there is no fixed layout to understand

consumer behaviour. Lot of research is yet to be conducted for understanding rural

consumers.