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MARKETING MANAGEMENT INSTITUTE OF MANAGEMENT STUDIES, GHAZIABADNH 24, Adhyatmik Nagar, Ghaziabad

SUBMITTED TO:RUCHIKA JAISWAL

MARKETING MANAGEMENT INSTITUTE OF MANAGEMENT STUDIES, GHAZIABADNH 24, Adhyatmik Nagar, Ghaziabad

SUBMITTED TO:RUCHIKA JAISWAL

2012

Rahul Pandey & Ritesh Garg

BBA 2nd year11/1/2012

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ACKNOWLEDGEMENT

A work is never a work of an individual. I owe a sense of gratitude to the intelligence and co-operation of those people who had been so easy to let me understand what I need from time to time for completion of this exclusive project.

I am greatly to my faculties Mrs. RUCHIKA JAISWAL (faculty, Marketing Management, IMS Ghaziabad) for him constant guidance, advice and help which enabled me to finish this project report properly in time.

I express my sincere thanks to all Faculties members and student of INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD for their generous help in various ways for the completion of this project in time.

Last but not least I would like to thanks to God for his blessing. Without him I could not have completed the project and thanks to them who are internally and externally involved in this project.

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TABLE OF CONTENT

Introduction of the Company

About Lifebuoy

Marketing Mix

Product Price Place Promotion

Lifebuoy product

Price List

Market Strategies

Pricing Strategies

New Distribution Strategies

Conclusion & Suggestions

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INTRODUCTION 

Hindustan Unilever Limited (HUL) is

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 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

harbour 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.

Type Public

Traded as BSE: 500696

BSE SENSEX Constituent

Industry Consumer goods

Founded 1932

Headquarters Mumbai, Maharashtra, India

Key people Harish Manwani (Chairman),

Nitin Paranjpe (CEO and MD)

Products Foods, beverages, cleaning

agents and personal care

products

Revenue 22,116 crore (US$4.18

billion)(2011-2012)[1]

Net income 2,691 crore (US$508.6

million)(2011-2012)

Employees 16,500 (2011)

Parent Unilever Plc (52%)

Website www.hul.co.in

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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, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s 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 world’s 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.

INDUSTRY ANALYSIS Toilet soaps, despite their divergent brands, are not well differentiated by the consumers. It is, therefore, not clear if it is the brand loyalty or experimentation lured by high volume media campaign, which sustain them. A consequence is that the market is fragmented. It is obvious that this must lead to a highly competitive market. Toilet soap, once only an urban phenomenon, has now penetrated practically all areas including remote rural areas. The incremental demand flows from population increase and rise in usage norm impacted as it is by a greater concern for hygiene. Increased sales revenues would also expand from up gradation of quality or per unit value. To fight competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer Products Ltd (GCPL) and Wipro Consumer Care & Lighting are now drawing up fresh game plans. And the accent is clearly on innovation to gain mind share as well as market share in this overcrowded category.

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ABOUT LIFEBUOY

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 time’s better germ protection compared to leading germ protection soaps.The invention, attributed to an Indian scientist, Dr. Amit Chakrabortty, Global Head-Research on Hygiene and Water, Hindustan Unilever, and his team. The HUL R&D centre in Bangalore, India, was the lead research centre for this breakthrough technology. This technology is being launched first in India, through Lifebuoy clini-care10.The ‘Active 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 skinLifebuoy has always been at the forefront of R&D in health & hygiene. The Activ Naturol Shield technology in Lifebuoy clini-care10 has also been endorsed 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.

KEY FACTS World’s No. 1 Selling Germ Protection Soap Distribution across 50 lakh + stores across the country Awarded the Bronze Global Effie for the ‘Superfast Hand wash’ campaign

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MARKETING MIX OF LIFEBUOY

PRODUCTPRODUCT

PLACEPLACE

PROMOTIONPROMOTION

PRICEPRICE

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PRODUCT At the very first HUL has launched the red brick lifebuoy with its own unique

fragrance. It has been repositioned itself in 2002 marking a new turning point in history

from carbolic to Total Fatty Material soap and been positioned as family soap with variants like lifebuoy Gold, Green.

The new lifebuoy range now includes lifebuoy active Red (125 gm, 100gm and 60gm) and Lifebuoy Active Orange (100gm).

Lifebuoy Active Orange offers the consumer a differentiated health perfume while offering the health benefit of lifebuoy.

At the upper end of the market, lifebuoy offers specific health benefits through lifebuoy International (Plus and Gold).

Lifebuoy International Plus offers protection against germs which cause body odour.

Lifebuoy International Gold helps protect against germs which cause skin blemishes.

Now lifebuoy stood for- perfume, formulation, size and shape. Lifebuoy has also launched Total, lifebuoy DeoFresh, Lifebuoy Nature and

Lifebuoy Gold Care. The latest one is launched, called Lifebuoy Skin Guard. Lifebuoy has also launched soap with neem and tulsi. The soap for total family protection, Offers clinically proven, long lasting

protection from infection causing germs. Recently it has lunched talcum powder under the brand name of lifebuoy.

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Price

Lifebuoy DeoFresh has been introduced especially for young adult who lead active Lifebuoy Total is for all those mothers with active kids who constantly fear hygiene threats from germs leading to stress and snxiety for the mothers and is available at Rs. 12 for 125gm, Rs. 10 for 100gm, and Rs. 5 for 55gm.lifestyles. it is available at Rs. 10 for 100gm.

Lifebuoy Nature, on the other hand, comes with neem and tulsi and is available at Rs. 10 for 100gm.

Lifebuoy Gold Care is specially designed for sensitive skin and is available at Rs. 10 for 100gm.

Promotion Company has done a strong promotion for its brand product lifebuoy. It uses to launch so many health programs in so many countries to make people

aware of health. Basically company use to so many health care program as their promotion. For example, a 1930’s campaign in the US was titled clean hands help guard

health’, encouraging the use of Lifebuoy soap to kill the germs on hands that can cause health issues.

A similar campaign continues today, with Lifebuoy hygiene education program on going in countries including like India, Bangladesh, Pakistan, Sri Lanka, Indonesia and Vietnam.

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It also does promotion through TV and print campaigns, the agency team focused

attention on the family health themes, conducted consumer education exercise using “Germ tests” through multimedia.

By this activity it has established the brand’s credentials as an authority in a credible manner.

For promotion in rural markets, it created the Lifebuoy Swashthya Chetana project where in 450 teams of health officers tapped 8000 villages in 11 states of India.

The brand registered a 30 per cent increase in volumes after launching this project.

In India Company has done its promotion in MAHAKUMBH mela at ALLAHABAD. The company stalls 14 places in the ground & taught people the value of health & hygine by demonstrating lifebuoy.

People in mela where asked to put their hands below some special camera where they could see the germs on their hands and were asked to wash their hands with lifebuoy and then see the difference.

Companies also use to show movies, distribute cassettes & advertise about lifebuoy in rural area.

Place

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Today lifebuoy is mainly sold in Asia and parts of Africa. It is market leader in

every Asian market where it is sold. By its health care program it covers many villages. Basically if we talk about India 70 per cent of the population lives in villages &

trying to cover that. It basically covers 2 tiers cities & rural areas. It has made his strategy like that in every small or big shop customer will be able

to find out the product. About the changed image of lifebuoy it also trying to make the availability of the

soap in above middle class society. It has already appointed 600 such sub- stockists. As a result, the distribution

network directly covers about 50,000 villages, reaching abou 250 million consumers.

By the swasthya chetna Project Company has already covered over in 52, 50,000 villages’ districts of Andhra Pradesh, Karnataka, Madhya Pradesh and Gujarat and is being progressively extended.

The vision of the company to reach every village of the country.

LIFEBUOY PRODUCT 

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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.Clear Skin

Lifebuoy Clear Skin provides specialist protection from acne, which results fro moil and dirt coming together. Mineral clay or "multani mitti" absorbs the oil from your skin, while washing

Bar Soap

Lifebuoy bar soaps support children’s health and growth by providing extended germ protection for up to 12 hours after a bath thanks to enhanced ingredients. Lifebuoy Body Wash provides deep cleansing of pores, protecting against the three root causes of skin health problems – clogged pores, over-drying, and infection- causing germs.

Hand Soap

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 diseases. Lifebuoy Hand Soaps offer hospital-strength 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 Men's Body wash

Male skin is more oily and sweaty, making it more prone to attacks from germs that cause skin problems and body odor. Lifebuoy Men's Body Washes are specially formulated to wash away excess oil and sweat, protecting against body odor and other problems caused by germs. Away germs and dirt to greatly reduce the incidence of acne. In fact, Lifebuoy Clear Skin has been shown to reduce acne up to70 per centin six weeks, guaranteeing visibly clearer skin

Hand Sanitizer

Lifebuoy Hand Sanitizer effectively disrupts bacteria’s cell membrane & virus’s outer coat thereby kills germs & viruses on your hands. Proven to kill Bar Soap Lifebuoy bar soaps support children’s health and growth by providing extended germ protection for up to 12 hours after a bath thanks to enhanced ingredients. Lifebuoy Body Wash provides deep cleansing of pores, protecting

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against the three root causes of skin health problems – clogged pores, over-drying, and infection- causing germs. 

Price List of LIFEBUOY Products

S.NO. Name Of Product Package Size Price (in Rs)

1 

Lifebuoy CARE BATH 120 gms 15

Lifebuoy CARE BATH 90 gms 12

2 Lifebuoy DEO FRESH SOAP 90 gms 10

3 Lifebuoy MILKED CARE SOAP 90 gms 12

4 

Lifebuoy NATURE BATH 120 gms 15

Lifebuoy NATURE BATH 90 gms 13

5 Lifebuoy SKIN GUARD 75 gms 15

6 

Lifebuoy TOTAL 120 gms 15

Lifebuoy TOTAL 80 gms 12

7 Lifebuoy Clear Skin 120 gms 20

8 Lifebuoy Hand Sanitizer 100 ml 60

9 

Lifebuoy Hand Soap 200 ml 45

Lifebuoy Hand Soap(refill pack) 180 ml 28

10 Lifebuoy Men’s Body wash 200 ml 98

MARKET STRATEGIES

INTRODUCTION

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 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.

LIFEBUOY’S MARKET SEGMENTATION AND TARGETING

The targeting market for lifebuoy is all households who can afford buying soap and who want soulful everyday need that provides them and their family with a 100 anti bacterial solution and complete protection from all germs bacteria and cleanliness from dirt Lifebuoy belief that children are the potential agent for change and imparting education on the importance of hand washing with soap will enable them to adopt early habit in life

LIFEBUOY’S REPOSITIONING 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.

REPOSITIONING CAMPAIGN

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

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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 improve d 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 are 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. 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 tore position 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.

MARKET SCOPE 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 antibacterial liquid baths as well opening a way for Lifebuoy to be a multiple product.

MARKET GEOGRAPHIC STRATEGY Geography has long been used as a strategic variable in shaping market strategy. History provides many examples of how businesses started locally and gradually expanded nationally and internationally. Unilever is having an international market strategy for Lifebuoy being available in almost every continent of the world. It is a worldwide brand of Unilever available in India, China, Indonesia, Cyprus, UK, and USA along with Pakistan. Lifebuoy has more than a life of 100 years, providing Unilever a key support in all of its brand buckets. Unilever knows the significance of its brand therefore it has globalized this product by making it an international brand. It has made it available in Asia and Africa where it is used by those people who have a daily income of less than 1 $. So Lifebuoy is well in line with its goals and objectives providing hygiene and health solutions that enable people to lead a life without fear of hygiene anxieties and health consequences.

MARKET ENTRY STRATEGY

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 Lifebuoy is one of the old products of Unilever which has more than 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. By adopting the first-in strategy, Lifebuoy has captured the maximum share of the market. Over 60years in India we guess there is not a single home that didn’t 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.

MARKET COMMITMENT STRATEGY Being the first-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, Uniliver just showing an average commitment to its brand of Lifebuoy which has really put its brand on the back foot.

PRICING STRATEGIES 

Market penetration Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achieve four main objectives:

Maintain or increase the market share of current products, this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling Secure dominance of growth markets. Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the

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Market unattractive for competitors Increase usage by existing customers – for example by introducing loyalty schemes

PROMOTIONAL STRATEGIES Successful promotion campaigns don't happen by chance. To realize goals, promotional products programs must be carefully planned, taking into consideration the audience, budget and, of course, the ultimate result to be gained.1. Define a specific objective.2. Determine a workable distribution plan to a targeted audience.3. Create a central theme.4. Develop a message to support the theme.5. Select a promotional product that bears a natural relationship to your profession or communicationstheme.6. Don't pick an item based solely on uniqueness, price or perceived value. Don’t fall prey to the latest trends or fads. The most effective promotional products are used in cohesive, well-planned campaign. Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Media and non-media marketing communications are employed for a pre-determined limited time to increase consumer demand, stimulate market demand or improve product availability. Lifebuoy is promoting its product using these kinds of promotional techniques

Consumer sales promotion techniques

 The different consumer sales promotion techniques used by Lifebuoy are Price deal: A temporary reduction in the price, such as happy hour. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the

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same price. Coupons: coupons have become a standard mechanism for sales promotions. Free-standing insert (FSI). A coupon booklet is inserted into the local newspaper for delivery. Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product.

Existing strategy

 Unilever uses a lot of distributors and retailers to supply its products in each market where the final customer might reasonably look for it. While appointing a distributor for a particular area, management uses its own judgment to select such a person that has a potential to operate effectively.Unilever uses an intensive distribution strategy for lifebuoy soap while at the same brand but in shampoos category it introduces only extensive strategy. Unilever did not fight for the better shelf space for lifebuoy soap. Lifebuoy is targeting middle and low income consumers so shelf space is not important our main focus is on intensive distribution and ideal price with some innovation

New Distribution Strategy

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Uniliver for Lifebuoy should introduce a new kind of distribution strategy that will be strategic fit between its productions to consumptions. Unilever should identify its larger, medium and small consumption areas and design the channel accordingly. According to my sense Lifebuoy must go for intensive distribution with wholesaler and retailers in the areas where rate of consumption is usually very greater than that of the other areas where comparatively rate of consumption is not so attractive

SuppliersSuppliers

DistributorDistributor

Lifebuoy Distribution strategyLifebuoy Distribution strategy

Wholesaleeer

Wholesaleeer

Retailer (Urban / Ruler)

Retailer (Urban / Ruler)

Retailer (Urban / Ruler)

Retailer (Urban / Ruler)

Wholesaleer

Wholesaleer

Retailer (Urban)Retailer (Urban)

Consumers

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CONCLUSION

After study the market strategies of HUL for Lifebuoy, I have reached these conclusion: HUL is the market leader in the FMCG sector in India. Lifebuoy soap brand market leader at India Urban and Rural Areas. Most of the customers are satisfied with the performance of lifebuoy soap

and their other products. Approx 70% customers have positive and 30% customer have negative

attitude in support of preference of lifebuoy soap and the other product of lifebuoy.

Customer’s awareness level is better in India. Lifebuoy soap improving health & hygiene for over 100 years in India

and all over world.

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SUGESSTIONS:I have tried 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 our side and what adjustment can be made in the present strategies to improve the product performance and overall image of the product in the customer’s mind.

In evaluating the position of the India 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 citizen keep it as a low level brand.

The major challenge Uniliver 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. Uniliver 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 price product.

In penetrating the market through price, lifebuoy has to compete with brands of P&G, Reckitt Benckiser and Colgate-Palmolive which are a good name of quality, so accordingly lifebuoy has to adjust its price at that level where it creates dominance among the existing brands.

In promoting the worth of the lifebuoy, it has to modify its promotional campaigns base on traditional heroism and fantasy; one is to come up with new realistic approaches highlighting the need of an antibacterial soap in most hygienic environment.

While deciding about the selection of the channel company should consider customer buying patterns and the nature of the market.

A general distribution pattern with distributors and retailers are the agents in the urban areas to remove lag time in delivery of the product. Since in rural areas the places are diversified so to improve the distribution there is an inclusive of the whole seller to make the distribution extensive.

There are some suggestions from our side identified through complete analysis and view of lifebuoy. I hope that these suggestions can make a difference in the lifebuoy by proper implementation and planning.