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CASE ANALYSIS

Unilever’s Lifebuoy in India –

Implementing the Sustainability Plan-
Case

FAS J1

Aishwarya Gopalakrishnan - 19F206

Jaya Shree Sanapala - 19F220
Prahadeesh S - 19F233
Shinoj Shaji - 19F252
Vishal Saini - 19F260
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1. What all mistakes were made by Unilever for Lifebuoy during 2000 to 2010?
Explain.
 In 2001, Unilever’s management replaced Lifebuoy’s chunky carbolic soap with a
milled toilet bar with contemporary health fragrance and better germ protection. It
was now repositioned as a family health soap. One could use the same soap for
bathing and handwash.
The multipurpose utility of the soap posed an issue as the general psychology of the
people is that they do not prefer to enter the bathroom before meals since it is
considered unhygienic.
People with middle-higher income prefer having different wash and shower areas
and hence different soaps to maintain hygiene.
 In May 2002, rural outreach program ‘Swasthya Chetna’ was launched with an intent
to grow sales through education of school children. ‘Glo-Germ’ demonstration was
the key tool for the program. Although the program implemented demonstrations,
visual aids, quizzes etc., no substantial incentive was provided to encourage the
continued use of the product.
 Again in 2005, ‘Life without Fear” campaign was promoted with a theme that
mothers should fearlessly allow kids to play in dirt. However, it failed to relate
children playing in mud and lifebuoy as a disinfectant that would protect them.
Considering that parents are cautious about their kids, allowing kids to play in dirt
did not strike a chord with the viewers.
 Later in 2007, HUL leveraged the findings of its clinical trial to relaunch the soap by
connecting it to school attendance. But attendance was not a very convincing reason
for consumers to adopt the use of Lifebuoy soap.

2. Was it right to launch Lifebuoy handwash in India in 2010? Justify.

Yes, it was right of HUL to launch Lifebuoy handwash in 2010. Due to the outbreak of swine
flu, resulting in 18,000 deaths in South Asia and Africa. This is when the public health officials
were talking about the importance of hand washing. Lifebuoy team understood that the
customers have moved from beauty soaps to health soaps and were willing to pay for the
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benefits that health soaps have to offer. This made Lifebuoy a product that could target
middle- and high-income population of urban areas. Lifebuoy saw this to be an opportunity
and came up with the concept of liquid handwash soap.
Despite of being a late entrant into the market, with quick innovation it came up with the
technology for 10 seconds germ free hands when the recommended average was 20-30
seconds.

STRENGTHS WEAKNESS
 R&D was already working on a  Late entrant in the fast-growing
new liquid soap formulation market of liquid soaps
 Developed a formula that can get  Market share has been falling
hands germs free in 10 seconds and reached a low 15.5% by
(less than the average time spent 2009
of 20-30 seconds)  Only targeted rural areas
 Lifebuoy already established
itself as a family hygiene soap
 Futuristic packaging displaying
households as ‘modern
households’

OPPORTUNITIES
 Swine flu outbreak led to public
health official insisting on
importance of hand washing
 Public moved from beauty soaps
to health soaps
 Until now Lifebuoy could target
only the rural market, liquid
handwash opened doors to the
urban middle- and high-income
group
THREATS
 Hard to overtake Dettol, liquid
handwash pioneers with strong
market positioning
 Liquid soap is fast growing and
dynamic market
 Considered a low-end product
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3. If yes, what will you recommend as its (a) Benefits (b) Features (c) 2 value propositions
(d) Weight and price point (e) Ad Campaign theme. (f) realistic goal and objective of
the brand?
a) BENEFITS:
A. Kills germs with one wash in less than 10 seconds
B. Inculcates the habit of washing hands in children due to the pump
mechanism of the dispenser
C. The liquid can be accessed without having to come in contact with content,
keeping the product away from the germs of the users’ hands.
D. This is used exclusively for the hands and not the shower soap.
E. This liquid soap can be kept outside the bathroom. This helps deal with the
problem of people being hesitant of using soap from bathroom before
eating.
b) FEATURES:
A. Packaging: It should come with a new packaging that can attract the
children to use the soap. The dispenser model of package comes with a
benefit of more usage of the product. This is because, children tend to get
fascinated by the mechanism of the dispenser and frequently press to use
the soap.
B. Fragrance: A fragrance can be added to bring a twist to the hand wash to
make it more attractive to the children as they are the target segment.
C. Anti-septic properties: The soap should contain anti septic properties as it is
what will fight with the germs that cause flu. This also makes the product
resonate more with being a hygiene soap that keeps away diseases.
D. It kills germs that cause diseases and flu in children.
c) VALUE PROPOSITIONS:
A. FUN PACKING CREATES HABIT OF WASHING HANDS: The fun to use packing
of the dispenser creates joy in pumping out the soap. Hence the kids are
motivated to use the soap more hence leading to washing hands becoming
a habit.
B. QUICKEST SOLUTION TO GERM FREE HANDS: It makes hands germ free in
less than 10 seconds, which is way less than the average time of 20-30
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seconds. Hence, one does not have to spend too much time was hing hands
but achieve clean hands.
d) WEIGHT AND PRICE POINT:
It can come in a 180 ml quantity at a price of Rs. 80/-. This will help place it as
not a very cheap product which will help make way into urban households. At
the same time a smaller pack with 100 ml at Rs. 50/- can be introduced for the
rural population with the availability of re-fills.
e) AD CAMPAIGH THEME: CLEAN HANDS WAVE BYE TO GERMS

4. What will you recommend for Lifebuoy soap in 2013 (a) Benefits (b) Features (c) 2
value propositions (d) Package design with content (e) Weight and price point (f) Ad.
Campaign theme? (g) realistic goal and objective of the product/brand?

I. BENEFITS:
(a) Health care and hygiene soap targeting at killing flu and diarrhea causing
germs
(b) Reduces the risk of diseases caused due to moving in huge crowds
(c) Provides protection to school going children and kids
(d) 100% germ free hands after 30 seconds of washing
II. VALUE PROPOSITIONS:
a) PROTECTION FROM GERMS FOR ALL AGES: Different variants can be
introduced targeting at different age groups. Earlier Lifebuoy targeted
only children using mothers’ emotions, however, now new products can
be used to target hygiene factor of the family as whole
b) SOAP FOR ALL CLIMATES: Since Lifebuoy is targeting the global market it
can start variants that can suit the different climates and weathers at
different places at different times if the year. It will help increase the new
users of the product and increase its market share.
III. PACKAGE DESIGN:
The packaging should be more echo friendly to ensure sustainability and
reducing the carbon footprint in compliance with the USLP. It should be
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attractive and define the product inside the pack. The package should be
different for each variant and the graphics on it
should communicate the value propositions of each variant.

IV. WEIGHT AND PRICE POINT: To do away with the image as a cheap soap, Lifebuoy
can come in a standard 50 g weight priced at ₹10.00 per bar. However, not to
lose the rural segment, bars of 35 g weight can be sold at ₹6.00 per bar.

V. FEATURES:
a) A hygiene soap aiming at killing germs
b) Generates more lather than any other soap
c) Added fragrance to a few variants if not all
d) > Lifebuoy Live- A soap for bathing
> Lifebuoy Plus- Soap exclusively for hand-wash
e) More variants with different colors and sizes. The shape of the soap can
also be less brick like and more appealing. Variants can be based on:
> Hygiene for kids
> Hygiene for adults
> Skin care different for men and women
> Glycerin soaps for winters and cold climates
f) Comes with anti-septic properties

VI. AD CAMPAIGN THEME: GENERATIONS TO COME SAFE FROM GERMS.

The campaign should aim at the core proposition they have for the customers
that is to keep the children safe from germs. Hence the campaign must revolve
around how Lifebuoy contributes to killing the germs at every stage of its usage
be it in shower or hand wash.

VII. REALISTIC GOAL AND OBJECTIVE:

 Help the population of India improve health and well being
 Reduce the carbon footprint in production process by halve through
sustainable forward and backward integration
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 Source the raw materials directly from the farmers

5. Should Lifebuoy be the focus brand for USLP? Reasons.

USLP

 Unilever Sustainable Living Plan was unveiled in October 2010.

 Mission: “do well by doing good”
 3 USLP goals:
 Halve the environmental footprint of making and using Unilever products
 Sustainably source 100% of its agricultural raw materials
 Help a billion people improve their health and well-being

Lifebuoy soap and liquid handwash are aimed at protection against germs assuring health
and wellbeing.

Lifebuoy should be the focus brand for USLP for the following reasons:

 Lifebuoy will help achieve the goal of changing hygiene habits of 1 billion people
across continents, namely, Asia, Africa and Latin America.
 The impact of this is magnificent as it will help reduce diarrhoeal disease that is
world’s second biggest cause of infant mortality
 USLP also aims at sourcing 100% of its agricultural raw materials sustainably, by
2015, 100% sustainable palm oil. Palm oil/Vegetable oil is a key ingredient of
Lifebuoy soaps.
 Improving health conditions and wellbeing are at the heart of the initiative as
Polman said “There are billions of people who want the improvements to their
health and wellbeing”.
 This will further boost the sales of Lifebuoy across the globe.

Apart from Lifebuoy, Unilever must also leverage its products such as Pureit, Knorr, Lipton
etc. to achieve its goals of making drinking water safe, improving nutrition and sustainable
procuring of its raw materials.
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6. Compare the 3 Lifebuoy behavior change programs. Which one will you implement
and how?

Parameters KKD (Khusiyon ki MP Partnership Urban Schools Liquids

doli) Outreach Initiative
Target Location Rural Areas Madhya Pradesh Urban Areas

Goals and objectives Multi Brand Importance of Emphasise on liquid

marketing and Handwash handwash rather than
rural outreach soap bars
Promotion Achieved through 5 levers of change and Implemented via
coupons, videos, trained teachers interactive games, songs,
games and door to dances and Glow Germ
door selling demonstration
Aimed at whom Rural households School going children School going children

Payback Period 8.6 years 13.5 years 3.5 years

Estimated Number of 85,00,000 45,00,000 15,00,000

customers
Gross Margin Rs 63,12,500 Rs 20,71,250 Rs 99,00,000

Positives Promotion of Implementation of Influence of

Unilever products behaviour change in handwashing behaviour
like Surf, Close Up customers through 5 on whole family by
etc. and Lifebuoy levers of change and children and
low program cost improvement in hygiene
Negatives High program cost Long payback period Focused only on urban
population

The program to be implemented is Khusiyon ki Doli program. This program ensures the
maximum customer base for Lifebuoy and will have the maximum impact. Even though the
cost of the program will be higher, the reach obtained is far better than the other programs.
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Another advantage of this program is that it promotes not just a single product, but multiple
products of Unilever like Surf, Close up etc. Thus, the cost is absorbed equally by all these
products. Since it is focussed on the rural area Lifebuoy will be able to create a better social
impact.

This also creates loyalty among customers which will be useful for the brand in the long run.

The only drawback is the long payback period. However, considering the reach and the
advantage of promoting multiple products the payback period can be considered a trade-off.

7. What goals, will your decisions achieve for Unilever/Lifebuoy?

 Improve the health and well being of a billion people is one of the goals to
which this decision will contribute. Since the awareness is spread in rural areas,
multiple generations will benefit from it. The scope of this program if made
international will reach out to a larger market.
 It could also help in creating a strong bond with rural areas which are the
primary sources of raw materials for the product. If this bond is properly
utilized especially in areas where they source their raw materials, it will help
them to ensure that eco friendly practices are used for the procurement of raw
materials. This contributes to their goal to source 100% of its agricultural raw
materials sustainably.