2. FMCG is the 4th largest sector in the Indian economy
Contributes to 9.5% of GDP of our country
The overall FMCG market is estimated to be USD
180Bn(INR 12,24,000) crore
The market has grown at CAGR 14% between 2014-
2015
15- 20 crore consumers of FMCG products will be
digitally influenced. These consumers will spend USD
40Bn(INR 272000).
2www.ibef.com, www.BCGconsultancy.com, www.cii.com
3. Personal care market gives revenue of USD 45 Bn(INR306000) crore
Soap market of India constitute revenue of USD 2.5Bn(INR17000) crore
Major players of Personal Care sectors are ITC, HUL,P&G,DABUR,MARICO
HUL controls almost half of the country's Rs 17,000 crore soap market with brands like Lux,
Lifebouy, Breeze, Hamam, Liril, Dove etc.
Significant demographic shifts : 70% increase in income levels, 100 Mn youth entering the
workforce, increasing nuclearisation & 35% of Indians living in urban centers
3
source:
http://economictimes.indiatimes.com/industry/cons-products/food/at-war-hindustan-unilever-takes-on-itc-in-the-soap-
market/articleshow/50240128.cms www.ibef.com, www.BCGconsultancy.com, www.cii.com
4. HUL was established in 17 Oct 1933 by Lever Brothers
Headquarters in Mumbai, Maharashtra
Hindustan Unilever Ltd (HUL) is India's largest fast moving consumer goods
(FMCG) company with a history of over 80 years in India
With over 35 brands spanning 20 distinct categories.
The Company has over 16,000 employees and has an annual turnover of Rs
30,170 crores (US$ 4.93 billion) (financial year 2014 - 2015).
4www.hul.com, www.ibef.com
7. 1895
• Lifebuoy entered in Indian consumer market.
• Its positioning in the market was clear with a promise that it kills germs and keeps the body healthy.
1933
1935
• Lever established its first Indian subsidiary ‘Hindustan Vanaspati Manufacturing Company’ in 1933
• Further, it established ‘Lever Brothers India Limited’ followed by another firm called ‘United Traders
Limited’ in 1935.
1956
• The three firms merged to form Hindustan Lever Limited (HLL) a first foreign subsidiary company in
India to go public with 10% equity offer.
• Lifebuoy coined a distinct and jingling advertising campaign during that period, Tandurusti ki raksha
karta hai Lifebuoy.
1963
1970
• HLL launched a new product called ‘Lifebuoy Special’ as a line extension
• 1970s, Lifebuoy witnessed the signs of maturity with sales growing, but at a slower pace compared
with the previous years.
7
8. 1977
1980
• Nirma’s aggressive marketing strategies by 1977 made it 2nd in the soap market.
• Lifebuoy’s marketing strategy with low pricing and low promotional strategies were challenged by
new local marketers.
1990
1991
• The soap industry witnessed new product and new soap category.
• Lifebuoy its monopoly was challenged by new brands with more value prepositions such as freshness,
beauty care, nature-care, and deodorant in soap bar manufacturing.
1996
1999
2000
• Soaps, detergents and household care products of HLL fell from the heights of 69% in 1992 to 45%.
• HLL posted a profit growth of 22.42%to INR 1,310 crore in 2000 as compared to INR 1,070 crore in
1999, its net sales moved up with a marginal growth of 4.5%to INR 10,604 crore as compared to INR
10,142 crore of previous fiscal year
2001
2002
• Dragged the market share by value of Lever’s soap business to 59.1% in 2000 from 62.7%.
• Therefore they adopted to have core Positioning though rejuvenation.
8
9. 2001
• Lifebuoy to undergo rejuvenation in positioning from a ‘male brand’ to a ‘family brand’ .
• Lifebuoy introduced Active Green, Lifebuoy Hand Wash, Lifebuoy Talcum Powder.
2002
• To aware consumer about ‘health and hygiene’, during 2001, HLL set up 14 stalls at Maha Kumbh
Mela in Allahabad city.
• Lifebuoy launched a 5-year massive rural health and hygiene programme with an investment of
USD 5.4Mn INR(36.72) crore million called Lifebuoy Swastya Chetna (LSC) to create
awareness about the importance of washing hands with soap.
2002
2003
2004
• Sales grew 20% after LSC programme, Lifebuoy targeted to promote social awareness and reach
the poor in rural markets who constituted a major chunk of population.
9
10. 2006
• In 2006, India constitutes 6.27 lakh villages covering 72% of total population, Lifebuoy’s focus on
the bottom of pyramid that constitutes a major section of rural population.
• Krish movie has a collaboration with Lifebuoy over the other brands since the brand is all about
protection and Krrish’s character is also about protecting the world from enemies.”
2007
2008
• HLL’s expected growth in quarterly sales at 16.8% in December 2007 and 19.17% in March 2008,
HLL intends to drive the mileage of the brand by using LSC as a tool of social change and
marketing in rural areas.
2008
• Lifebuoy’s strategies enabled the brand to extend the life cycle indefinitely, with a set of promises
and values that meet the needs of new generation customers. “Remember that brands that don’t
keep up get lost quickly. They first become irrelevant, then invisible and then they’re gone.”
10
11. STRENGHTS
1. First soap to use carbolic acid, which gave it a red color and
strong, medicinal scent
2. Wide portfolio
3. High consumer awareness as the product is available for
more than 100 years in the market.
4. Most popular soap brand specially in the rural market by
economic times in a survey for brand loyalty.
5. Excellent brand visibility and extensive distribution
WEAKNESSES
1. Lower market penetration in urban areas as compared to
rural areas
2.Initially positioned as a masculine soap, which was
eventually turned as a family soap.
3. Not been perceived as a beauty soap, and is mainly used
just for hand washing. Health care.
OPPORTUNITIES
1. Products for an ageing Population.
2. Strong focus needs to given on Hair Care Portfolio.
3. Program which focus on Educating Conusmers Play
a Vital Role.
THREATS
1. International and Intense competition in this sector
by domestic as well as the international competitors.
2. Technology Development was at a slow pace.
SWOT
ANALYSIS
11
12. Geographic Demographic Psychographic Behavioral
Region- Rural and
Urban
Age- 5-25, 25-45,
45 & above
Social Class:
Lower, Middle,
High
Occasion- Regular
City - Metro cities,
Tier 1 cities, Tier 2
Cities, Tier 3 Cities
Gender- Male,
Female
Lifestyle- health &
hygiene orientation
Benefits- germ free
Attitude- Positive
Personality-
Impulsive
User- Potential,
First-time, Regular
User
Brand Loyalty-
Medium
12
• Targeted at the young Indian
consumer for the age group of 5 to
25 years with the blend of health
and hygiene in the product offering.
• First, Hindustan Unilever works
with schools by targeting
schoolchildren.
• In addition, the company focuses
on newly married housewives.
13. 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”
Lifebuoy has journeyed from humble beginnings of being a chunky red bar of soap to an evolved
range of general and specialized products across formats, offering solutions in the health and hygiene
space.
Lifebuoy has a strong social mission, promoted through its rural hygiene programme, Khushiyon Ki
Doli, which propagates the practice of hand washing with soap to reduce dirrhoeal deaths.
Lifebuoy is available in bar soaps, liquid hand wash, hand sanitizer and talc.
The first 28 days can HELPA CHILD REACH 5.
TAG LINE “LIFEBUOY HAI JAHAN TANDRUSTI HAI WAHAN
“Healthy hoga Hindustan.” 13
14. Lifebuoy Dettol Savlon Nirma Cinthol
Company Hindustan
Unilever
Reckitt
Benckiser
ITC Ltd. Nirma Ltd. Godrej
Tagline Healthy hoga
Hindustan
Be 100% sure Heals without
hurting; Make
your house a
safe house
Soundriya
sabun nirma
I use Cinthol.
Do you?;
Don’t stop
USP Lifebuoy
provides
100% better
protection
from germs as
compared to
ordinary
soaps
The first of its
kind in anti-
bacterial
segment
Non burning
antiseptic
liquid
Quality at
affordable
price.
Brand equity
among
consumers
14
19. Positioned targeted Blue collared and children but never the woman.
During 1996: rural consumer’s query-”why do I need lifebuoy when all soaps
clean.”
Nirma entered the market in detergent and soaps and later moved to toilet soap
manufacturing.
Nirma’s aggressive marketing strategies made it world’s largest volume seller and a
potential rival to HLL.
19
20. Continued
Sales of lifebuoy started diminishing in rural market
Lifebuoy’s monopoly was challenged by new brands with more value prepositions
such as freshness, beauty care, nature-care and deodorant in soap bar
manufacturing.
During 1993-94 there was a significant role in changing consumer needs.
20
21. • 7,53, 311 UNITS – soaps, sales in 9 months ended on 31st Dec 2015
• Total revenue in 2014 – 2015 Rs.31,124 crores
• Soap comprises 32% of turnoverFINANCIAL
• The R&D team of over 750 people comprises highly qualified scientists and
technologists working in areas of Home Care, Personal Care, Foods & Beverages and
Water Purification
• In 2014, used almost 60,000 tones of renewable biomass as fuel.
R & D
• Sunset, an initiative where employees can share ideas for quick solutions
• A 70:20:10 approach to learning.
• 70% of learning is done through on-the-job training, unique job experiences,
challenging assignments and building business-linked capabilities; 20% is through
coaching and mentoring and 10% of learning is through formal development.
Human
Resource
22. Political
Liberalisation of market in 1970 and1991 made international players
to come to India.
Economic
Per capita income in 2006 was $797.26 i.e. India was underdeveloped country
Buying power increased i.e. $6,300 is the per capita income as per on 2015.
Social
With the rising education and disposable income levels, the need for hygiene
and personal / skin care becomes important.
Premium soaps are thus targeted at the audience to change their habits by
raising their aspiration levels.
23. Technological
Technology like (SCM) Supply Chain Management and(E-CRM) Electronic
Customer Relationship Management will play a vital role.
Environmental
Information & awareness of product is present as before it was the provided
information from company only.
Carbon emission decreased by 62%.
Legal
Fair employment law.
25. PRODUCT
Launched as carbolic ‘red
soap’
Symbolise health and
hygiene
Very strong brand image
Rationalised its product
cycle by introducing new
variants
PRICE
Sold to lower and middle
income group people
Low Pricing Strategy with
more quantity at Rs. 5, Rs.
10 and Rs. 20.
Most variants sold at most
variants sold at MRP
Rs.11/piece
PLACE
HUL's retail network of over
7.2-million outlets.
Distributors 3.2 Million
1 mn direct outlet and 6.3 mn
total outlet
PROMOTION:
Positioned as ‘health and
hygiene’ soap
Now promoted as family
soap for both male and
female
Initially promoted by
sportsman life football
players
26. Promotional Strategies
1963 promotion through Commercials, print Ads, Poster hoardings & small clippingas in cinema halls
In 1999 Jingling campaign “Tandrusti ki raksha karta hai lifebuoy”.
Focused on hard workings, savings minded & economic class of people
Symbolic presentation for soap i.e. Red soap
June 2006 collabrorating the krrish movie, printing Krrish’s character on Lifebuoy packs as Krrish’s
character is also about protecting the world from enemies
(LSC) Lifebuoy Swastya Chetna created awareness about washing hands & covered 43000 villages, 60
lakh children.
Reached the poorest of the poor in India and other developing countries as India rural population in2006
was 72 % of population
26
