Case Challenge

July 24, 2016

SAVLON HANDWASH
RIDING THE SWACHH INDIA WAVE
Instructions:

Teams will submit a case analysis/solution document comprising no more than 6 pages of single spaced, 12point font (including illustrations and excluding TOC, Cover page). The first page of the document must
comprise of an executive summary of the solution suggested by the team. The executive summary should be
limited to one page only.

There is no pre-determined structure to analyse the case. Participants are free to use any format which best
illustrates and provides convincing arguments supporting their solutions.

Wherever necessary, the participants must make references to the sources of information and data.

Case presentations will be judged based on the following criteria the originality, creativity and uniqueness
of the idea will receive the highest weightage; the implement ability, sustainability and scalability of the idea;
its fit with ITCs vision and the manner in which it can leverage ITCs strengths; the thoroughness of research,
analytics and economic logic used to defend viability and execution of the idea.

Last date for submission of case solutions is 14th August 2016. Teams must send their entries to the email ID
provided for the campus.

For full details please refer to the Interrobang Season 6 Case Challenge Brochure available with your Campus
Point of Contact or contact interrobang@itc.in.

SAVLON HANDWASH
ITC Interrobang Season 6 Case Challenge1
Its the Annual Brand Plan time at the Personal Care Division of ITC and the Brand Manager of Savlon handwash
is gearing himself up for preparing the detailed brand agenda for the coming year. Savlon, acquired by ITC in the
year 2015, has emerged as the key growth driver for the personal care business. The rejuvenated brand has had
a very encouraging start to its second innings in India. Over past few years, handwash has emerged as a category
with huge growth potential. The challenge that the brand manager is faced with now is to deliver 5X growth in
Handwash.
Diversification for growth
Over the past decade, ITC has successfully diversified into multiple new businesses such as Lifestyle Retailing,
Education & Stationery Products, Foods and most recently, Personal Care Products with an objective of becoming
Indias largest FMCG player. With one of the highest growth rates in the FMCG sector, the Personal Care market
posed exciting opportunities and challenges. Existing brands sought to upgrade their offerings and foreign
players made an entry hoping to capture a share of the growing disposable income of the middle class. As the
number of competitors increased, so did the challenge of building differentiated yet relevant brands.
In this competitive environment, ITC launched its Personal Care Business in 2005 by foraying into various
categories including Soaps, Shower Gels, Shampoos, Skin Care products & Deodorants. In the last eight years, the
business has grown rapidly on the back of product innovation and robust consumer insights.
ITC Personal Care Products Business
With the per capita consumption being at relatively low levels when compared to other emerging economies, the
Indian personal care industry is poised for rapid growth driven by increasing urbanisation, rising disposable
incomes and increasing consumer preference for enhanced personal grooming.
Through sustained focus on development of innovative and consumer-centric products through in-depth
consumer understanding and dedicated R&D capabilities, ITCs personal care portfolio has gained a strong
consumer franchise despite competition from established global players.
Essenza Di Wills, the first brand launched in 2005, is a prestige offering with a unique range of fine fragrances
and personal care products manufactured in France. Crafted to encapsulate fine living, Essenza Di Wills embodies
a fine balance between the classical and the contemporary. The brand personifies exclusivity, innate style,
sophistication and magnetism. Retailed exclusively through the Wills Lifestyle stores in India, Essenza Di Wills
range has been developed with some of the leading perfume noses in the world and the finest fragrance houses
in France.
Youthful radiance is the true mark of beautiful skin. In line with this proposition, Fiama Di Wills introduced its
portfolio of bath care products in 2007. Scientists at Laboratoire Naturel, ITCs first world-class consumer
interaction and product development centre, have crafted unique innovations. The unique Fiama Di Wills gel
bars and shower gels are infused with skin conditioning gels and exotic natural ingredients to provide gentle and

1This Case

is developed by and is the sole property of ITC Limited. This is for academic purposes only and is not intended to be copied or
displayed or reproduced at any place outside the Campus.

effective care. Fiama was voted as the Best Product in the Shower Gel/Body wash category at Femina NYKAA
awards in 2015.
Vivel, one of Indias most exciting brands today (Brand Equity-AC Nielsen survey of most exciting brands) was
launched in 2008. It has also been ranked as No 1 by Consumer Voice as the most trusted soap brand in 2014.
An enviable portfolio of soaps, body wash and a recent foray into skin care with Cell Renew has made the brand
a household name.
Engage range of deodorants, cologne & perfume sprays, launched in 2013 is today the 2nd largest brand in the
category. It had rightly identified the space of Playful Chemistry that exists between a man & a woman in the
early days of a relationship & positioned itself as brand for both. The communication of Engage creatively
amplified equality of relationship in a serendipitous romance. This was like a breath of fresh air in a segment
which spoke about one way unabashed attraction & has quickly gained attention of consumers.
A robust distribution network, intensive consumer-insights, unique proprietary technologies, a valuable
portfolio of products and effective marketing and communication strategies have been the key factors behind
ITCs successful foray into the personal care business.
At the core of ITCs product philosophy is the constant endeavour to deliver greater customer value through
world class products. This is achieved through an unwavering focus on differentiated value propositions,
rigorous scientific testing at ITCs state-of-the-art R&D centre in Bangalore and intensive evaluations by an
independent panel of consumers to ensure product superiority over competition.
The Health Space WASH (Water, Sanitation, Hygiene)
In India, almost 62 million children (48%) across all income
groups are stunted, which results from inadequate nutrition as
well as frequent infections. WHO estimates that 50% of
malnutrition is associated with repeated Diarrhoea or intestinal
worm infections from unsafe water or poor sanitation or hygiene.
India accounts for 21% of the worlds global burden of disease. A
World Bank 2010 report informs that India is losing more than
6% of its GDP annually due to premature deaths and preventable
illnesses. In a country with more than a billion people, more than
50% defecate in the open leading to spread of disease. More than
68% of the population live in the rural areas and at least 50% of
them do not have access to health care services. The per capita
doctor ratio is only 1:1700, one of the lowest amongst developing
nations. Urban squalor is also on the rise bringing in its wake
various preventable infections and diseases.
Maintaining personal hygiene is necessary for personal, social,
health and psychological reasons or simply as a way of life.
Keeping a good standard of hygiene helps to prevent the
development and spread of infections & illnesses. Access to improved water and sanitation facilities does not, on
its own, necessarily lead to improved health.

It is projected that by 2025, the health & hygiene FMCG space is going to touch Rs. 8500 Crore. Consumers seek
healthy skin & germ protection in many ways. Some key consumer concerns are
a) General lack of cleanliness in surroundings leading to various afflictions of health & skin
b) Incidence of new epidemics
c) Changing weather patterns affecting children and adults
d) Increased chemical presence both in the air and in food leading to reduced immunity
e) Pollution and dust leading to various skin problems and throat problems
f) Modern urban life depriving children of healthy playtime again leading to various problems
Solutions to these problems can be addressed by various types of products for use both at home and in hospitals
for adults, children and babies alike.
Savlon A brief history
Savlon antiseptic was launched more than 50 years back by Imperial Chemical Industries (ICI) who first
developed the two antibacterial agents - cetrimide & chlorhexidine gluconate. This made Savlon into a very
effective antiseptic preferred by doctors and hospitals. The proof of Savlons effectiveness lay in the fact that it
eliminated both gram positive and gram negative bacteria. Importantly, the antiseptic did not cause any burning
sensation on raw wounds unlike other leading brands.
In 1992-93 Johnson & Johnson acquired the brand from ICI. The launch campaign for Savlon Antiseptic Liquid is
well remembered for its core proposition of Heals without Hurting. Savlon Antiseptic Liquid in India was built
through intensive doctor detailing leading to a high degree of salience amongst the medical fraternity. In a
recently conducted equity study among the doctors across major metros, Savlon had the highest salience
measures such as top of mind recall and spontaneous recall. 2 out 3 doctors prefer to use Savlon Antiseptic Liquid
compared to other leading brands. Savlon is seen as a specialist wound care solution especially for kids because
of its no-burn equity. Its positioning has been gentle yet effective. Product attributes of no-burn, reddishorange colour and mild smell are well remembered by consumers. Unlike others, Savlon has a pH which is close
to blood pH which is why it doesnt burn on application. Highly acidic or alkaline substances would cause strong
burning sensations. At the same time, Savlon was a much more effective antiseptic. Studies showed that Savlon
has 8 times more germ-kill compared to a leading peer.
Extending the equity of antiseptic liquids, Savlon Soaps were launched in the late 1990s. Initially a glycerine
variant was introduced, quickly followed by Aloe vera with the proposition Tough on Germs, Gentle on Skin.
Over the last few years, the portfolio was expanded to include handwash as well.
ITC acquires Savlon
ITC acquired Savlon from J&J in the year 2015 with the aim of creating a new engine of growth in the fast growing
health & hygiene space by leveraging the equity of the heritage brand coupled with the in-house brand & trade
marketing wherewithal. And it has been quite a journey so far.
Marketing efforts were focused upon rekindling a dormant brand. There was a concerted push on bringing to
the fore the effectiveness/performance credentials of Savlon. Antiseptic Liquid continued to be the source of
equity for Savlon.

The portfolio was bolstered by a new soap launch (Savlon Double Strength) and a vastly improved, new range of
Handwashes. Riding on the distribution strength of ITC, the portfolio was made available across 4 lakh stores in
the country.
The handwash numbers have been particularly encouraging. Coupled with exciting new variants & attractive
promotions, the brand has definitely got a thumbs up from the consumers. Various concerted marketing
initiatives were undertaken over the course of the year to get consumers positively disposed towards Savlon
handwash. From leveraging large public gatherings like Kumbh for activating the brand to focused campaigns
on social media and handwash placement drive in restaurants, cafes & clubs all activities have helped in giving
the brand the necessary acceleration.

GROWTH IN VOLUME OFFTAKES

Importance of hand hygiene in disease prevention
Diarrhoea is the second biggest killer of children
under five years old worldwide. It is often caused by
lack of proper handwashing. A simple act of washing
hands can reduce the risk of diarrhoea by 50%.
Mothers/caregivers who reported washing their
hands with soap either before a meal or after defecation had lower association with stunted children. This
corresponds with the findings from a community-based cross-sectional study conducted in the State of Madhya
Pradesh in which maternal hygiene practices were significantly associated with child undernutrition.(BMJ Open.
2015; 5(2): e005180)

Handwash A Core Germ Protection Category

Liquid handwash has emerged as one of the foremost categories for germ protection across the world. According
to an estimate, Liquid handwash industry size is 20% of bathing bars in the developed world (In India, the same
ratio stands at just 4%). While this points to huge growth potential, at the same time market development efforts
are required from manufacturers to increase category adoption

Barriers/Enablers to Category adoption

Handwash category is driven by both fresh trials & repeat purchases Handwash has got the highest repeat rate
among all liquid wash formats.
The household penetration of this nascent category (handwash) is just around 16% at an All India Urban level
(Moving Annual Total Apr15) compared to Soaps which is at a 99% level. Consequently, there is huge growth
potential in this category and the same is being witnessed in the past few years (20% Value growth).
16.5
13.3

5.1

6.2

0.92
All India U+R

All India Urban

MAT Apr'15

0.99

All India Rural

MAT Apr'16

Currently, its an urban phenomenon with 58% of the industry residing in top 35 cities (8 metros + 27 Ten Lakh
Plus population towns) and all Urban markets contributing to 95% of volumes. The disparity amongst urban
markets is also stark. While there is a Mumbai at 50% penetration, Kolkata is at 19%. Upper SECs are early
adopters of the category, however, contribution from lower SECs is steadily increasing.
Handwash
All India Urban
Mumbai
Bangalore
Orissa
Delhi
Chennai
Punj/Haryana
Kerala
Kolkata

HH Penetration %
16.5
50.6
24.8
22.5
21.9
20.9
20.8
20.7
19.6

One of the primary enablers to the growth of this category is the buy-in of mothers, who are the hygiene
keepers of the house. For a mother, it is very important that their kids do not fall sick frequently its a measure
of effectiveness/quality of parenting for them. Hence they ensure that kids lead a hygienic lifestyle and
handwashing is a very important aspect of the same. Just like other good habits (like respecting elders,
speaking politely, taking a bath everyday etc), handwashing is becoming a core component of the overall

grooming of the kids. Ease of use is something which is driving kids to use handwash and in a way helping
mothers to achieve their objective of becoming a good mother.
At the same time, there are barriers which are holding the category back like Behaviour change and economical
reasons.

The Challenge
While the brand is off to an exciting start with an eventful first year, the challenge of delivering 5X growth in
Savlon handwash is the foremost thing that the Savlon brand manager is grappling with.
Some of the key questions in his mind are:
1. Should he focus on existing users or non-users or both?
2. How does Savlon gain share of wallet of the existing users? How does Savlon gain preference amongst
existing users and influence their attitude towards itself?
3. How does Savlon address the barriers to category adoption and accelerate the rate of conversion of nonusers?
4. What new innovations will aid brand growth?
All these questions will have to be answered in his Annual Marketing Plan.

Annexures
Annexure 1: Savlon Advertising
https://www.youtube.com/channel/UC-lUdfr350gjrY28CB3KmyQ

Annexure 2: Products

Antiseptic Liquid

Soaps

Handwash Bottles

Handwash Refills

Annexure 3: Geography-wise Household penetration

MAT Apr'16

Hand wash

Dettol

Lifebuoy

Santoor

HH Pen %Vol HH Pen %Vol HH Pen %Vol HH Pen %Vol

All India Urban

16.5

11686

11.9

7085

6.4

2809

2.1

852

Delhi

21.9

12.4

18.2

14.9

6.9

9.7

1.7

6.1

Punjab/Haryana

20.8

4.6

16.6

5.3

5.8

3.7

3.1

6.4

Rajasthan

14.3

3.7

10.6

3.5

6.3

4.2

1.4

2.3

UP

10.4

5.1

8.1

5.8

3.1

3.9

1.2

5.4

Kolkata

19.6

3.5

13.0

2.8

9.8

5.2

1.4

2.6

ROWB

12.9

2.1

8.3

1.8

6.2

3.2

0.6

0.9

Guwahati

12.1

0.1

9.8

0.1

2.4

0.1

0.2

0.0

Bihar

17.4

4.8

14.1

5.3

8.0

5.4

0.7

2.1

Orissa

22.5

2.1

14.4

1.8

13.8

4.1

0.3

0.1

Mumbai

50.6

24.0

40.6

24.2

21.7

20.6

10.7

33.4

Maha excl Mum

18.1

9.6

13.6

10.0

6.5

7.8

2.9

11.0

Ahmedabad

10.8

0.9

6.1

0.6

2.9

1.2

2.5

2.9

Guj Excl Ahd

12.0

3.1

7.8

2.9

3.4

3.0

2.5

6.3

MP

18.5

5.7

15.7

6.5

4.3

3.6

1.8

6.1

Chennai

20.9

4.0

12.9

2.8

12.6

6.8

0.9

2.0

4.6

3.2

3.4

2.9

2.4

4.2

0.0

0.3

24.8

3.8

14.8

3.6

10.5

4.8

3.7

3.7

8.1

0.9

4.4

0.8

2.4

0.9

1.1

2.1

Kerala

20.7

3.5

7.1

1.4

8.2

4.7

4.0

4.8

Hyderabad

13.9

1.3

9.9

1.4

5.0

1.4

1.2

1.3

5.6

1.5

4.0

1.5

1.8

1.8

0.1

0.3

TN excl Chen
Bangalore
K'taka excl Bang

AP excl Hyd

Annexure 4: Household penetration by SECs, Town class, Household Size, Age & No. of children
All India Urban
Total HHs 000's (%)

Univ

Hand
wash

Dettol

Lifebuoy

Santoor

88517

14626

10564

5622

1828

SEC: A

22

50

53

55

56

SEC: B

24

27

27

25

24

SEC: C

28

14

13

11

11

SEC: D/E

26

TCL: 40 L+

28

42

43

46

48

TCL: 10-40 L

18

23

22

24

24

TCL: 05-10 L

TCL: 01-05 L

19

13

13

11

11

TCL: <= 01 L

27

16

17

14

14

HH Size: Upto 02

HH Size: 03 - 04

46

50

49

52

52

HH Size: 05 - 08

41

40

40

38

39

HH Size: 08 +

AGE-HW: UPTO 34 YRS

35

33

33

33

28

AGE-HW: 35-44 YRS

33

33

33

32

33

AGE-HW: 45+

32

35

35

35

39

HHs with Children Upto 6 years

13

14

14

14

14

HHs with children between 7-14

32

30

30

30

30

Annexure 5: Handwash industry major players and their size