HUL Market Strategies for Life Buoy Soap

ACKNOWLEDGEMENT

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

I am greatly indebted to my Faculties Mrzzzzzzzzzzzzzzzzzz s , (faculty, Marketing, ASM) 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 Students of ASTHA SCHOOL OF MANAGEMENT for their generous help in various ways for the completion of this project in time.

Last but not the least I would like to thank 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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DECLARTION

I hiseby declare that the project entitled “MARKET STRATEGIES OF HUL FOR LIFEBUOY” is of my own and it is only for academic purpose and has not been submitted to any othis University or Institution before. I have submitted this dissertation report for the partial fulfilment of MASTER OF BUSINESS ADMINISTRATION [2008 – 2010] in ASTHA SCHOOL OF MANAGEMENT, BHUBANESWAR under BIJU PATTNAIK UNIVERSITY OF TECHNOLOGY, ORISSA.

__________ __________ Sig nature Name: ccccccc ccccccccccc Date:

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INTERNAL GUIDE CERTIFICATE

This is to certify that Mr. zzzzzzzzzzzzzzzz, a student of Master of Business Administration (MBA) from Astha School of Management, Bhubaneswar, has successfully completed his Dissertation on “MARKET STRATEGIES OF HUL FOR LIFEBUOY” under my guidance and supervision for the partial fulfillment of his course.

I wish him all success.

Mr. zzzzzzzzzzzzzz

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(Faculty of Marketing, )

PREFACE

Theoretical knowledge without practical knowledge is of little value. In order to achieve concrete and positive result along with theoretical concept the exposure of real life situation existing in corporate is very much needed. To fulfill this need the management course has a provision for the practical training program. I thank my institute to provide us such opportunity having training period in our course so that students can have real felling of industrial life.

My project report is based on Studying the MARKET STRATEGIES OF HUL FOR LIFEBUOY. The objective of my study is to know the Consumer Preferences, its

Loyalty towards the company, to know the market strategies of HUL for their products.. In the coming pages an attempt has been made to present a comprehensive report concerning different aspects of Market.ing Strategies.

I have tried to put my best effort to complete this project work on the basis of skill that I have achieved during the last one year study in the institute.

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I have tried to put my maximum effort to get the accurate statistical data. However I would appreciate if any mistakes are brought to my by the reader.

TABLE OF CONTENTS Table of Contents...................................................................................................................................5 chapter – 1.............................................................................................................................................8 Introduction to the study........................................................................................................................9 Introduction:......................................................................................................................................9 1.2 OBJECTIVE OF THE STUDY:................................................................................................10 1.3 Methodology of this report:.......................................................................................................11 CHAPTER – 2.....................................................................................................................................11 THE INDIAN SOAP INDUSTRY......................................................................................................12 2.1 INTRODUCTION:....................................................................................................................12 2.2 INDUSTRY ANALYSIS:..........................................................................................................13 2.3 MAJOR PLAYERS:..................................................................................................................14 CHAPTER – 3.....................................................................................................................................17 AN OVERVIEW OF ..........................................................................................................................17 HINDUSTAN UNILEVER LTD.........................................................................................................18 3.1 INTRODUCTION:....................................................................................................................19 3.2 HISTORY:.................................................................................................................................20 3.3 organisation structure:................................................................................................................23 3.4 PRODUCT PORTFOLIO:.........................................................................................................24 3.4.1 FOOD BRANDS:...............................................................................................................24 3.4.2 HOME CARE BRANDS:...................................................................................................25 3.4.2 PERSONAL CARE BRANDS:..........................................................................................27

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The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing, nourishing and manageability that gives a 20 something girl the confidence to express herself.................................................................................................................................28 Clinic Plus:..........................................................................................................................................28 Clinic Plus understands that healthy hair is an important asset which helps your family progress in life and empoHULrs you. It is leading brand in India. ..............................................................................28 Axe:.....................................................................................................................................................28 AXE is a cool, iconic, youth brand available in more than 60 countries. In India, Axe, which has been launched in 1999, is the largest selling Male Deodorant......................................................................28 Dove:...................................................................................................................................................29 Dove is known to be a keeper of promises and has given real products to women world over. To help you enjoy your own brand of beauty, Dove provides a wide range of personal care, hair care, skin care and deodorants. So choose a new way of pampering your skin, everyday, with Dove.........................29 3.5 SWOT ANALYSIS OF HUL:...................................................................................................29 Chapter – 4..........................................................................................................................................31 PRODUCT INFORMANTION...........................................................................................................31 4.1 INTRODUCTION:....................................................................................................................32 4.2 HISTORY:.................................................................................................................................33 4.3 Evolution and changes:..............................................................................................................34 4.4 Objectives: ...............................................................................................................................35 Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions that enable people to lead a life without fear of hygiene anxieties and health consequences.............................35 4.5 INGREDIENTS.........................................................................................................................35 4.6 Hygiene Education and Disaster Relief:.....................................................................................35 4.7 LIFEBUOY PORTFOLIO: ......................................................................................................36 Chapter – 5..........................................................................................................................................38 Market strategies for lifebuoy..............................................................................................................39 5.1 INTRODUCTION:....................................................................................................................39 5.2 Lifebuoy’s Market Segmentation and Targeting:.......................................................................40

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5.3 Lifebuoy’s Repositioning Strategy:...........................................................................................41 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.. .....................................41 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..................................................................................................................41 5.4 Repositioning Campaign:...........................................................................................................41 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 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 is 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..................................................................41 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 to reposition 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................................................................................42 5.5 MARKET STRATEGIES:.........................................................................................................42 5.5.1 MARKET SCOPE STRATEGY:........................................................................................42 5.5.2 MARKET GEOGRAPHIC STRATEGY: ..........................................................................43 5.5.3 MARKET ENTRY STRATEGY:.......................................................................................43 5.5.4 MARKET COMMITMENT STRATEGY:.........................................................................44 5.6 STRATEGIES WITH RESPECT TO 4P’S:..............................................................................45 5.6.1 PRODUCT:.........................................................................................................................45 5.6.1.1 PRODUCT STRATEGIES:.............................................................................................45 5.6.2 PRICING STRATEGIES:..................................................................................................47 7

5.6.4 DISTRIBUTION STRATEGIES:.......................................................................................50 Movement of goods and services from the source through the distribution channel, right up to the final consumer, or user and the movement of payment in the opposite direction, right up to the original producer or supplier..................................................................................................50 CHAPTER – 6.....................................................................................................................................55 Conclusion & Suggestions...................................................................................................................55 Bibliography........................................................................................................................................58

CHAPTER – 1 8

INTRODUCTION TO THE STUDY

INTRODUCTION: The project undertaken is on “MARKETING STRATEGY OF UNILEVER FOR LIFEBUOY”. It describes about the Marketing strategy using by HUL for the success of both product and company. Goals indicate what a business unit wants to achieve; Strategy is a action plan for getting the goals. Every business must be design a strategy for achieving its goals, consisting of a marketing strategy, and a compatible technology strategy and sourcing strategy.

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Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. Unilever is one of the world’s largest and leading multinational companies; Unilever commenced their business activities on a larger scale by setting up their first factory in Netherlands, in the year of 1872. Operating in Bangladesh for over the last four decades the company is trying to significantly contribute towards the augmentation of the standard of living by bringing world class high quality products at the door step of their customers. The usage of Unilever products by over 90% of the people in Bangladesh stands a testimony to their successful operation. . Their array of products show that they produce household care, fabric cleaning, skin cleansing, skin care, oral care, hair care, personal grooming, and tea based beverage products under worldwide famous brand names Wheel, LUX, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Lipton, Lipton Taaza, Pepsodent, All Clear, Vim, Surf Excel,etc.

1.2 OBJECTIVE OF THE STUDY: This report is an outcome of an analysis of marketing strategies used by Unilever Bangladesh Ltd. The main purpose of the report is to find what strategies the company uses to market its world famous soap, LIFEBUOY, in India; the positive and negative aspects of those strategies. The report further analyzes the position of Hindustan Unilever Ltd. in the toiletry industry in comparison to its competitors. The 10

report discusses the process of using market segmentation, target marketing, the product, pricing, promotional and distribution strategies and a competitive analysis.

1.3 METHODOLOGY OF THIS REPORT: For accessibility and availability of information we have chosen to work on the strategies of Hindustan Unilever Ltd. As the company operates in the market with a huge number of products in different industries, we have decided to focus on one of their world wide successful brands, LIFEBUOY. Most of the information used in this report is from primary sources. The main source of information was the focus group discussion. In addition information was also collected from websites.

CHAPTER – 2 11

THE INDIAN SOAP INDUSTRY

2.1 INTRODUCTION:

The origins of personal cleanliness date back to prehistoric times. Since water is essential for life, the earliest people lived near water and knew something about its cleansing properties - at least that it rinsed mud off their hands. A soap-like material found in clay cylinders during the excavation of ancient Babylon is evidence that soap making was known as early as 2800 B.C. Inscriptions on the cylinders say that fats were boiled with ashes, which is a method of making soap, but do not refer to the purpose of the "soap." Such materials were later used as hair styling aids. Soap got its name, according to an ancient Roman legend, from Mount Sapo, where animals were sacrificed. Rain washed a mixture of melted animal fat, or 12

tallow, and wood ashes down into the clay soil along the Tiber River. Women found that this clay mixture made their wash cleaner with much less effort. Some of the early instances of commercial manufacturing of soap are: In Britain references began to appear in the literature from about 1000AD, and in 1192 the monk Richard of Devizes referred to the number of soap makers in Bristol and the unpleasant smells which their activities produced. A century later soap making was reported in Coventry. Other early centers of production included York and Hull. In London a 15th century "sopehouse" was reported in Bishopsgate, with other sites at Cheapside, where there existed Soper's Lane (later renamed Queen Street), and by the Thames at BlackfriarsvAndrew pears. In 1789, he commenced production of a transparent soap at a factory in Wells Street, off Oxford Street and became hugely successful.

2.2 INDUSTRY ANALYSIS: The toilet soaps market is estimated at 530,000 tpa including small imports. The market is littered over with several, leading national and global brands and a large number of small brands, which have limited markets. The popular and premium brands include Lifebuoy, Lux, Cinthol, Liril, Rexona, and Nirma. 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.

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As the market is constituted now, it can be divided into four price segments: premium, popular, discount and economy soaps. Premium soaps are estimated to have a market volume of about 80,000 tonnes. This translates into a share of about 14 to 15%. Soaps form the largest pie of the FMCG Market with bathing & toilet soaps accounting for around 30% of the soap market, by value. Currently, the soap industry is divided into three segments namely Premium, Popular and Economy/ Sub popular. 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.

2.3 MAJOR PLAYERS:

Hindustan Unilever Ltd. With over seven brands — LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE and PEARS — has 54.3% share of the overall soap market. HUL is India's largest Fast Moving Consumer Goods Company; its journey began 75 years ago, in 1933, when the company was first incorporated. The company stirring the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages and also one of the country's largest exporters. HUL's brands includes Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, KnorrAnnapurna, Kwality Wall's - are household names across the country. They are manufactured in over 40 factories across India. In the Rs7,000 crore by sales soap market, HUL’s market share has dropped to 54.3% in March 2008 from 55.9% in March 2006. 14

Godrej Consumer Products GCPL, India’s second largest soap maker after Hindustan Unilever Ltd, has nearly 9.2% market share. With 11% market share in value terms, it is the second largest soap maker after Hindustan Unilever. Godrej Consumer Products (GCPL) is a major player in the Indian FMCG market with leadership in personal, hair, household and fabric care segments. The company is one among the largest marketer of toilet soaps in the country with leading brands such as CINTHOL, FAIRGLOW, NIKHAR, & ALLCARE. Fairglow brand, India's first Fairness soap, has created marketing history as one of the most successful innovations. It is also the preferred supplier for contract manufacturing of toilet soaps, some of which are the most well-known brands in the country.

Wipro In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate segment in India. Wipro also has a profitable presence in niche market segments of infrastructure engineering, and consumer products & lighting.Wipro has made a large acquisition in the Consumer Care business. The presence of Wipro in the toilet soap industry can be seen through their brands such as SANTOOR and CHANDRIKA. With industry leading organic growth rates and the acquisition, Consumer care business has reached a Revenue run rate in excess of $100 million per quarter.

Procter & Gamble India Procter & Gamble India (PGHHCL) was incorporated in 1964 after Procter & Gamble, US, acquired Richardson Vicks, US. Formerly known as Richardson Hindustan (the Indian subsidiary), it was later named as P&G. It changed its name

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again in 1998 to Procter & Gamble Hygiene and Health Care in order to reflect the nature and character of the business of the company. During 2004-05 the company has increased its installed capacity of Soaps & Detergents and Toilet Preparations etc by 36500 Tonnes and 263 Tonnes respectively. With this expansion the total installed capacity of Soaps & Detergents and Toilet Preparations etc has increased to 108500 Tonnes and 5875 Tonnes respectively.

Nirma Incorporated as a private limited company, Nirma was converted into a deemed public company and then to a public limited one in Nov.'93. Nirma has a leadership presence in Detergents, Soaps and Personal Care Products. To have a greater control on the quality and price of its raw materials, Nirma undertook backward integration into manufacture of Industrial Products like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric Acid. During 1996-97, Nilnita Chemicals, Nirma Detergents, Nirma Soaps and Detergents, and Shiva Soaps and Detergents were amalgamated with the company. The company created 'Nirma Consumer Care Ltd.' - a wholly owned subsidiary on 22nd Aug.'97, which is the sole licensee of the brand name 'Nirma' within India. Nirma enjoys a share of 6.74% in soaps.

ITC ITC, the country’s largest cigarette maker, entered the segment last year and has made a strong headway in a short time. According to AC Nielsen, its share has grown to 1.75% in just five months despite the fact that many of its brands such as Superia, Fiama Di Wills and Vivel are currently sold in only six states.

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CHAPTER – 3 AN OVERVIEW OF 17

HINDUSTAN UNILEVER LTD.

MISSION To addvitality to life. Meet everyday needs for nutrition with brands that help people feel good, look good and get more out of life.

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3.1 INTRODUCTION: Hindustan Unilever Limited (‘HUL’), formerly Hindustan Lever Limited (it was renamed

in

late

June

2007

as

HUL),

is

India's

largest

Fast

Moving

Consumer Goods (FMCG) company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. These products endow the company with a scale of combined volumes of about 4 million tonnes and sales of nearly Rs. 13718 crores. HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to "add vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the equity. The rest of the shareholding

is

distributed

among

360,675

individual

shareholders

and

financial institutions. HUL's brands ‐ like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close‐up, Lakme, Brooke Bond, Kissan, Knorr‐Annapurna, Kwality Wall's – are household names across the country and span many categories ‐ soaps, detergents, personal products, tea, coffee, branded

staples,

ice

cream

and

culinary

products.

These products

manufactured over 40 factories across India. The operations involve

are over

2,000 suppliers and associates. HUL's distribution network comprises about

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4,000 redistribution stockiest, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers.

3.2 HISTORY: Unilever was created in 1930 by the amalgamation of the operations of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie, a merger as palm oil was a major raw material for both margarines and soaps and could be imported more efficiently in larger quantities. In the late 19th century the businesses that would later become Unilever HUL among the most philanthropic of their time. They set up projects to improve the lot of their workers and created products with a positive social impact, making hygiene and personal care commonplace and improving nutrition through adding vitamins to foods that HUL already daily staples.

Today, Unilever still believes that success means acting with 'the highest standards of corporate behavior towards our employees, consumers and the societies and world in which HUL live'. Over the years HUL've launched or participated in an evergrowing range of initiatives to source sustainable supplies of raw materials, protect environments, support local communities and much more.

Through this timeline you'll see how our brand portfolio has evolved. At the beginning of the 21st century, our Path to Growth strategy focused us on global highpotential brands and our Vitality mission is taking us into a new phase of development. More than ever, our brands are helping people 'feel good, look good and get more out of life' – a sentiment close to Lord Leverhulme's heart over a hundred years ago.

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In 19th century Although Unilever wasn't formed until 1930, the companies that joined forces to create the business HUL know today HUL already HUL established before the start of the 20th century.

1900s Unilever's founding companies produced products made of oils and fats, principally soap and margarine. At the beginning of the 20th century their expansion nearly outstrips the supply of raw materials.

1910s Tough economic conditions and the First World War make trading difficult for everyone, so many businesses form trade associations to protect their shared interests.

1920s With businesses expanding fast, companies set up negotiations intending to stop others producing the same types of products. But instead they agree to merge and so Unilever is created.

1930s Unilever's first decade is no easy ride: it starts with the Great Depression and ends with the Second World War. But while the business rationalizes operations, it also continues to diversify.

1940s Unilever's operations around the world begin to fragment, but the business continues to expand further into the foods market and increase investment in research and development. 1950s Business booms as new technology and the European Economic Community lead to rising standards of living in the HUL, while new markets open up in emerging economies around the globe. 21

1960s As the world economy expands so does Unilever and it sets about developing new products, entering new markets and running a highly ambitious acquisition programmed.

1970s Hard economic conditions and high inflation make the '70s a tough time for everyone, but things are particularly difficult in the Fast Moving Consumer Goods (FMCG) sector as the big retailers start to flex their muscles.

1980s Unilever is now one of the world's biggest companies, but takes the decision to focus its portfolio, and rationalize its businesses to focus on core products and brands.

1990s The business expands into Central and Eastern Europe and further sharpens its focus on HUL product categories, leading to the sale or withdrawal of two-thirds of its brands.

The 21st century The decade starts with the launch of Path to Growth, a five-year strategic plan, and in 2004 further sharpens its focus on the needs of 21st centuryconsumers with its Vitality mission.

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3.3 ORGANISATION STRUCTURE: Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) company. It is present in Home & Personal Care and Foods & Beverages categories. HUL has about 15,000 employees, including over 1400 managers. The fundamental principle determining the organisation structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the company’s nationwide operations. The Board of Directors as repositories of the corporate of HUL act as a guardian to the Company as also the protectors of shareholder’s interest. •

Mr. Harish Manwani - Chairman

•

Mr. Nitin Paranjpe - CEO and Managing Director

•

Mr. R. Sridhar - Chief Financial Officer

•

Mr. Gopal Vittal - Executive Director, Home & Personal Care

•

Mr Pradeep Banerjee - Executive Director, Supply Chain

•

Mr. D. S. Parekh - Independent Director

•

Mr. A. Narayan - Independent Director

•

Mr. S. Ramadorai - Independent Director

•

Dr. R. A. Mashelkar - Independent Director

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3.4 PRODUCT PORTFOLIO:

UNILEVER’S BRANDS

♣ Food Brands ♣ Home care brands ♣ Personal care brands ♣ Nutrition ♣ Health, hygiene & beauty 3.4.1 FOOD BRANDS: Unilever is one of the world's leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands. Kwality Wall's: Kwality Wall’s, the brand with a big heart, offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians – kids, teens and adults. Lipton: Lipton Yellow Label is a premium, full-bodied tea, made out of the finest teas, perfect for the ‘healthy’ Indian.

Kissan:

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Kissan acts as a catalyst, easing stressful moments at the dining table. With Kissan, good food is loved not shoved. Bru: Some moments in life are special and close to the heart. Bru makes these moments with loved ones even more magical…Its India’s largest coffee brand that offers a range of products in Instant coffee, Conventional coffee and premixes....Its rich aroma and unique blend makes every moment come alive… Knorr: Knorr Ready to Cook helps the consumer make her family's favorite dishes at home and helps her get restaurant like taste at home itself. It comes in the Indian Ready to Cook range and Chinese Ready to Cook range. Taj Mahal: Crafted from carefully selected tender leaves from India’s finest tea gardens, the lingering aroma of Taj Mahal always has an impact. When a cup of Taj is served, compliments follow. Annapurna: Launched nationally in 1998, Annapurna Atta is aimed at helping the homemaker provide wholesome, tasty nutrition to her family.

3.4.2 HOME CARE BRANDS: In many parts of the world HUL lead the home care market, with brands such as Omo, Surf, Comfort and Cif. It's more than just hygiene – with homes and clothes that are clean and cared for, HUL help you get more out of life.

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Comfort: Comfort Fabric Conditioner understands this and has addressed this need by formulating a fabric conditioner that not only refreshes the clothes but also makes the HULarer feel cared for Rin Consumer insight shows that one of the leading drivers that indicate a good wash is the level of whiteness and brightness that clothes have after the use of a detergent powder. Rin is formulated to offer whiteness and bring back life in your everyday clothes. Surf excel: Remember when you HULre a child? How you HULre free to explore, returning home covered in dirt and other stains that you wore like the badges of an intrepid discoverer?

Domex:

Domex bleach gives you the confidence you need, eradicating all

known germs. With Domex, you can be absolutely certain that the job is done

Cif: Getting rid of tough stains in your house is not tough anymore. Cif’s unique formula with micro- particles remove the toughest dirt making your surfaces beautiful and shiny like new.

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Vim: Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later.

3.4.2 PERSONAL CARE BRANDS: personal care brands, including Dove, Lifebuoy, Lux, Pond's, Rexona and Sunsilk, Dove, Axe, etc

are recognized and respected around the world. They help

consumers to look good and feel good – and in turn get more out of life. Clear: The new range of Clear is poHULred with the dual benefit of Clear tech and essential oils. The dual action of its advanced formula guarantees Zero dandruff and leaves your feeling fabulous. Close Up: Closeup is synonymous with ‘Freshness’ that gives you the confidence to be close to someone

Fair & Lovely: More than 30 years ago, a unique brand was born. Wrapped within a humble lavender tube, it HULnt on to become the World’s No.1 Fairness cream.

Lifebuoy soap:

27

Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions. Lux: Lux stands for the promise of beauty and glamour as one

of

India's most trusted personal care brands. Pond's: Pond’s, has been listening to women’s needs and desires for 150 years and this has enabled us to deliver new products customised to their needs. Pond’s accompanies them on their journey to enhance the beauty of their skin. Rexona: Rexona is the world's leading anti-perspirant brand. It was the first antiperspirant deodorant to be launched in India Sunsilk: The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing, nourishing and manageability that gives a 20 something girl the confidence to express herself

Clinic Plus: Clinic Plus understands that healthy hair is an important asset which helps your family progress in life and empoHULrs you. It is leading brand in India.

Axe: AXE is a cool, iconic, youth brand available in more than 60 countries. In India, Axe, which has been launched in 1999, is the largest selling Male Deodorant. 28

Dove: Dove is known to be a keeper of promises and has given real products to women world over. To help you enjoy your own brand of beauty, Dove provides a wide range of personal care, hair care, skin care and deodorants. So choose a new way of pampering your skin, everyday, with Dove.

3.5 SWOT ANALYSIS OF HUL: STRENGTHS •

Strong brand portfolio,price,quantity & variety.

•

Innovative Aspects.

•

Presence of Established

WEAKNESSES •

Strong Competitors.

•

Low exports level (at present).

•

Changing consumption

distribution networks in both urban and rural areas.  3400 distributers

pattern. •

High advertising costs.

 16 million outlets over the world.  700 million customer base. •

Strong R&D of the company

•

Highly skilled human resource.

•

Corporate Social Responsibility(CSR)

29

OPPORTUNITIES •

THREATS

Large domestic market – over a

•

Tax and regulatory structure.

billion population.

•

Mimic of brands

•

Untapped rural market.

•

Entry of ITC in FMCG sector.

•

Changing

•

Increasing cost of raw material

Lifestyles

&

Rising

income levels, i.e. increasing per capital income of consumers.

30

CHAPTER – 4 PRODUCT INFORMANTION

31

MISSION To bring safety, security and health to 5 billion people through the active Promotion of hand washing with soap.

4.1 INTRODUCTION: Lifebuoy is a famous and distinctive brand of soap that was created by the Lever Brothers soap factory in 1894. It was the first soap to use carbolic acid, which gave it a red color and strong, medicinal scent. Lifebuoy is still manufacture d today and is 32

the leading brand of soap in many developing countries including India. Today Lifebuoy is sold in all over the World. It is market leader in every market where it is sold. The desire to be clean, active and healthy is intrinsic to every one – irrespective of age or economic status. Lifebuoy understands this need and champions the cause for hygiene and health around the world. An inspiring vision for more hygienic, healthier and ultimately more vital communities is the driving force behind the Lifebuoy brand. To realise this vision, Lifebuoy has looked to consistently innovate and provide accessible hygiene and health products to a wide variety of consumers. This vision also commits the Lifebuoy brand team to visible action, inspiring projects that motivate consumers to improve their hygiene behaviour.

4.2 HISTORY: •

In

1894,

William

Hesketh

Lever

launched

Lifebuoy in the UK as the Royal Disinfectant Soap. •

Lever

grew

up

in

industrialised

Bolton,

Lancashire, which was a typical English city of the Industrial Revolution era, with thousands of people living in slums where disease ran rampant. Epidemics of typhoid, dysentery and yellow fever were common and infant mortality was

exceptionally

high.

'Cleanliness is next to godliness' was a common theme of reformist groups, which demanded hygiene education and improved living conditions for the poor and working classes. They also demanded a preventative approach to reduce disease and illness that were primarily caused by unsanitary conditions.

33

•

Lever was actively seeking the perfect formula for a soap product that could combat germs and still be affordable to everyone. In what could be termed as a major scientific breakthrough of the era, he found just that in carbolic acid.

•

The brand went global in 1911 and began distributing to countries such as the United States, Germany, Switzerland, Canada, India, etc.

4.3 EVOLUTION AND CHANGES:

•

Lifebuoy went through several changes and incarnations throughout the brand's history. A white version of the soap was introduced in 1962 and contained a light perfume scent. Pink and aqua versions were released soon after. Each package of Lifebuoy soap contained the phrase "Knocks out B.O." and the brand is credited with coining the long-standing abbreviation for body odor.

•

The original Lifebuoy soap was manufactured in the UK until 1987 when the production and distribution was halted. The brand was shortly taken over by Unilever and is still in production today---albeit with several key differences.

•

Due to regulations put forth by the European Union, the soap can no longer contain carbolic because it is potentially toxic and linked to skin irritation and respiratory tract problems with prolonged exposure. The substance is also considered a possible carcinogen.

•

Lifebuoy soap is still the leading brand of soap in several countries worldwide, specifically in India and parts of Southern Asia. Unilever produces a wide range of products under the Lifebuoy umbrella such as body wash, liquid soaps and acne-fighting solutions

34

4.4 OBJECTIVES: Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions that enable people to lead a life without fear of hygiene anxieties and health consequences.

4.5 INGREDIENTS •

Sodium Palmate

•

Sodium Palm kemelate

•

Water

•

Parfume

•

Sodium C12-C18 Alkyl Sulfate

•

Glycerin

•

Sodium Chloride

•

Sodium Carbonate

•

Triclorocarbon

•

Pentasodium Pentetate

•

Glyceril Laurate

•

Curcuma Aromatica (Root) Oil

•

Cl 11680

•

Cl 12490

•

Ethane Hydroxy Diphosphoric

•

Acid

•

Tetranatrium EDTA

•

Methylchloroisothiazolione

4.6 HYGIENE EDUCATION AND DISASTER RELIEF:

•

The

brand's

core

promise

of

protection and a commitment to 35

support life through unbeatable protection is at the heart of the brand name itself – Lifebuoy, the guarantee of protection when you are threatened. 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 programmes ongoing in countries including India, Bangladesh, Pakistan, Sri Lanka, Indonesia and Vietnam •

Lifebuoy also has a history of helping people maintain hygiene in times of natural disaster. During the 1940 Blitz of London, the brand set up mobile, free washing facilities for public use. Each unit was equipped with showers, towels and soap. In 2004 after a Tsunami hit Asia, Lifebuoy bars were sent in relief packages to India, Sri Lanka and Indonesia to help prevent the spread of disease.

•

The brand also provided aid after earthquakes hit Pakistan and Northern India in 2005. Lifebuoy donated over 200,000 bars of soap to the International Committee of the Red Cross to support the recovery effort.

4.7 LIFEBUOY PORTFOLIO: 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.

•

Lifebuoy Hand Sanitizer effectively disrupts bacteria’s cell membrane & virus’s outer coat thereby kills germs & viruses on your hands. 36

•

Proven to instantly kill 99.99% germs.

•

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 .

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 infectioncausing germs. ]

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 comm on 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.

37

Lifebuoy Men's Bodywash Male skin is more oily and sweaty, making it more prone to attacks from germs that cause skin problems and body odour. Lifebuoy Men's Body Washes are specially formulated to wash away excess oil and sweat, protecting against body odour and other problems caused by germs. Two variants provide the most important benefits to men's skin:

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 has been shown to reduce acne up to 70 per cent in six weeks, guaranteeing visibly clearer skin.

CHAPTER – 5 38

MARKET STRATEGIES FOR LIFEBUOY

5.1 INTRODUCTION:

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

39

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.

The ‘Lifebuoy Swasthya Chetana’ programme uses a ‘direct consumer contact’ methodology, and touches the lives of 70 million people in 18,000 villages. A unique feature of this campaign is that it utilizes multiple contacts, as opposed to other programmes which are single contact’ in nature. Gushes the HLL spokesman, “This programme aims to educate people about the benefits of handwash with soap, and how handwash can help kill invisible, disease causing germs. It is thus a marketing programme with a strong social cause of improving the health and hygiene of rural India. The brand USP is, ‘Lifebuoy provides 100% better protection from germs as compared to ordinary soaps.’

5.2 LIFEBUOY’S MARKET SEGMENTATION AND TARGETING:

The targeting market for lifebuoy is all households who can afford buying soap and who want to fulfill 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

40

5.3 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.

5.4 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 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 is 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.

41

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 to reposition 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.

5.5 MARKET STRATEGIES: Here in marketing strategies we will discuss the existing strategy of Lifebuoy along with some adjustments in the strategies to improve our selected product. The discussion of these market strategies are hereunder.

5.5.1 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.

EVALUATION: In evaluating this multimarket strategy, one comes to know that Unilever is well using its product of Lifebuoy in promoting its business. It has diversified that brand into different categories to capture every part of the market. This strategy is helping

42

Unilever in a way that due to variety of products it not only saves the existence of a single product but also saving other products which are complement to it.

5.5.2 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, USA along with Pakistan.

EVALUATION: 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.

5.5.3 MARKET ENTRY STRATEGY:

Lifebuoy is one of the old products of Unilever which has more than 100 years of successful journey, we

43

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 60 years 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.

5.5.4 MARKET COMMITMENT STRATEGY:

Being the first-in 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, Unilever is just showing an average commitment to its brand of Lifebuoy which has really put its brand on the back foot.

EVALUATION: In evaluating the market commitment strategy it is necessary for the Unilever to again show strong commitment to its product. Although Unilever has well realized the situation and make changes in its strategies which are making some changes in the consumers mind but we think there is more need required to retrieve its image of better quality at lower price in the customers mind.

44

5.6 STRATEGIES WITH RESPECT TO 4P’S: 5.6.1 PRODUCT:

A product is anything that can be offered to a market to satisfy a need or want. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas. Product Classification •

Lifebuoy is a Tangible, Non Durable Good on the basis of this classification.

•

Lifebuoy and other soaps fall into the category of Convenience Good

Product Life Cycle: Lifebuoy Bar is in the maturity stage of its life cycle.

5.6.1.1 PRODUCT STRATEGIES:

PRODUCT POSITIONING STRATEGY: “Placing a brand in that part of the market where it will have a favorable reception compare with other brands”. 45

Unilever position Lifebuoy when come in red colors as a brand of low income group. They choose their segment and position their brand according to the needs and wants of the segments. This segment wants long life of the soap and the chemical formula of Lifebuoy enables it to have long life.

PRODUCT REPOSITIONING STRATEGY: Due to competition, Unilever has to reposition its brand Lifebuoy because the needs and wants of people are changed. Unilever should revise its marketing mix to reposition Lifebuoy. Now they are targeting whole India by the advertisement “Healthy Hoga Hindustan”. They position their brand for the health conscious people. In repositioning they changed the shape, color and the attributes of the Lifebuoy because want this kind of changes and they do this through environmental scanning.

PRODUCT OVERLAP STRATEGY: Unilever is also using Overlap strategy between Capri and Lifebuoy. The potential customers move from Capri to Lifebuoy and from Lifebuoy to Capri. In this way they are keeping the potential customers with themselves.

PRODUCT SCOPE STRATEGY: Single Brand: Unilever is using single brand strategy when Lifebuoy came in traditional red color and use by lower income group. Multiple Brands:

46

In order to attain the whole market Unilever has introduced Lifebuoy shampoo to capture more growth and profits. PRODUCT DESIGN STRATEGY: Deals with the standardization of the product. Unilever is using two of product development strategies. Standard product: Unilever is offering a standard product of Lifebuoy soap and shampoo by standardized packaged product. Customized product: In case of Lifebuoy shampoo different sizes are available, customers use according to its requirements from 200ml bottle to 5ml sachet pack since there is no one time consumption.

5.6.2 PRICING STRATEGIES:

Market penetration:

47

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 market unattractive for competitors

•

Increase usage by existing customers – for example by introducing loyalty schemes

Fast Moving Consumer Goods (FMCG) like lifebuoy shop has to be Some requirements for making an impression in the market for penetrating: 1) Strong distribution channel 2) Minimum profit margin 3) Simple marketing message 4) Lesser-priced packs to increase affordability 48

5) Packaging in smaller units and localized 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 consumers to a product.

5.6.3.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 communications theme. 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 a 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: 49

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 markedon the package.

Price-pack deal: The packaging offers a consumer a certain percentage more of the product

for

the

same

price

(for

example,

25

percent

extra).

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.

5.6.4 DISTRIBUTION STRATEGIES: Movement of goods and services from the source through the distribution channel, right up to the final consumer, or user and the movement of payment in

the

opposite

direction,

right

up

to

the original producer or supplier.

Chanel of Distribution: A distribution channel can be as short as being direct from the vendor to the consumer

or

may

include

several

inter-connected

(usually independent but

mutually dependent)intermediaries such 50

as wholesalers, distributors, agents, retailers. Each intermediary got the items at one pricing point and moves it to the next higher pricing point until it reaches the final buyer also called channel of distribution or marketing channel.

The Importance of Distribution: Most producers use intermediaries to bring their products to market they try to develop a Distribution channel to do this. A distribution channel is a set of Interdependent organizations that help make a product available for use or consumption

by

the consumer or business user. Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. A company’s channel decisions directly affect every other marketing decision. Place decisions, for example, affect pricing. Marketers that distribute products through mass merchandisers such as Wal-Mart will have different pricing objectives and strategies than will those that sell to specialty stores. Distribution decisions can sometimes give a product a distinct position in the market. The choice of retailers and other intermediaries is strongly tied to the product itself. Manufacturers select mass merchandisers to sell mid-price-range products while they distribute top-of-the-line products

through

high-end

department

and

specialty stores. The firm’s sales force and communications decisions depend on how much persuasion, training, motivation, and support its channel partners need. Whether a company develops or acquires certain new products may depend on how well those products fit the capabilities of its channel members.

51

Some companies pay too little attention to their distribution channels. Others, such as FedEx, Dell Computer, and Charles Schwab have used imaginative distribution systems to gain a competitive advantage.

Functions of Distribution Channels: Distribution channels perform a number of functions that make possible the flow of goods from the producer to the customer. These functions must be handled by someone in the channel. Though the type of organization that performs the different functions can vary from channel to channel, the functions themselves cannot be eliminated. Channels provide time, place, and ownership utility. They make products available when, where, and in the sizes and quantities that customers want. Distribution channels provide a number of logistics or physical distribution functions that increase the efficiency of the flow of goods from producer to customer. Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to large numbers of customers. This occurs in two ways. The first is called breaking bulk. Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at atime to many different customers. Second, channel intermediaries reduce the number oftransactions by creating assortments providing a variety of products in one location—sothat customers can conveniently buy many different items from one seller at one time. The transportation and storage of goods is another type of physical distribution function. Retailers and other channel members move the goods from the production site to other locations where they are held until they are wanted by customers. Channel intermediaries also perform a number of facilitating functions, functions that make the purchase process easier for customers and manufacturers. Intermediaries often provide customer services such as offering credit to buyers and accepting customer returns. Customer services are oftentimes more important in B2B markets in which customers purchase large quantities of higher priced products.

52

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. SUGGESTED DISTRIBUTION STRATEGY:

We have suggested that Unilever for life buoy should introduce a new kind of distribution strategy that will be a strategic fit between its productions to 53

consumptions. Unilever should identify its larger, medium and small consumption areas and design the channel accordingly. According to my sense and survey 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. Lifebuoy is available at every outlet and at every big, medium and even at very small stores(hatti).Now we want to save the cost of per Tikki soap in Urban areas by reducing intensive approach and turning to a new strategy that a more easily applicable and sensible. We have discussed the following diagrammatic distribution method of Unilever for Lifebuoy in the both Rural and Urban Market as well. We have eliminated the existence of wholesaler from in the Urban market as of many reasons:

It is a lower consumption area for Lifebuoy Warehousing cost can be a big trouble for wholesalers as they did not purchase extra quantity from distributors and company and definitely it increases cost of contacting to wholesaler and managing relationship. While the selection of channel company considers customer buying patterns and the nature of the market.

54

CHAPTER – 6

CONCLUSION & SUGGESTIONS

CONCLUSION: 55

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 Indian 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% customers have negative

attitude in support of preference of Lifebuoy soap and the other products of Lifebuoy. 

Customer's awareness level is better in India.



Lifebuoy soap Improving health & hygiene for over 100 years in Indian and all

over world.

SUGGESTIONS: I have tried to fully 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 adjustments can be made in the present strategies to improve the product performance and overall image of the product in the customer’s mind.

56

•

In evaluating the position of the Indian 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 citizens keep it as a low level brand.

•

The major challenge Unilever 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. Unilever 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 quality 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 prices 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 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 inclusion of the whole seller to make the distribution extensive.

57

These 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.

BIBLIOGRAPHY

•

Google.com 58

•

Wikipedia.com

•

Scribd.com

•

Marketing teachers .com

•

Marketingprofs.com

•

Dostoc.com

•

Slideshare.com

•

Principle of marketing “Philip kotler”.

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