Post on 19-Nov-2014
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LIFEBUOY CASE STUDY- LEVATHIAN OR LEGEND
PRESENTED BY
GROUP-3
OVERVIEW:
• Facts about companies
• Positioning of the brands
• Competitive forces
• Competitor’s Strategy
• Reason of decline
• Repositioning and Suggestion
FACTS ABOUT TOILET SOAP MARKET
• Total toilet soap market: 45 billion
• By volume: 540,000 tons
• 3 segments in the market for toilet soap,
namely:
Carbolic / Economy segment – 42% - 15000 tons
Popular Segment - 44% - 10000 tons
Premium Segment – 14% - 5000 tons
FACTS ABOUT HLL
• Subsidiary of Anglo-Dutch Unilever Group
• Deals with consumer products and b2b markets
• Annual sales turnover: 106 billion, soaps-18%
• HLL Soap share: 58% in the market
• Penetrated by 88% to rural India
• One among the 25 fastest growing segment in
India
• Proud owner of a portfolio of 75 brands
FACTS ABOUT NIRMA CHEMICALS
• A tough competitor for the HLL
• Business in consumer products & industrial
products
• Turnover was 20.52 billion, soaps – 35%
• Introduced other products, that failed to click
FACTS ABOUT GODREJ LIMITED
• Third important player in the market
• Turnover 8 billion, without any successful brand
• Reason for slide: Alliance and break up with P&G
• Market Share slipped from 11% to 5%
• Introduced No.1 soap with different
characteristics
• Face Saver : CINTHOL
FACTS ABOUT PROCTER AND GAMBLE
• Not seen as competitor to toilet soap market
• Soap and Washing powder dept. failed
• Sanitary and shampoo items were moderate
• Rationalizing its brand portfolio
FACTS ABOUT OTHER PLAYERS
• Wipro was successful in several brands
• Mysore sandals lost - parent organization's
tardiness
• Colgate Palmolive- partially successful
• Dettol successful as bath soap / antiseptic liquid
• HLL Savlon heads on with dettol
• Henkel brands – average performance in market
POSITIONING
Companies tried to use this:
Positioning in terms of sales
Positioning in terms of price
Positioning in terms of availability
Positioning in terms of variety, suiting to needs
Positioning in terms of value for money
Positioning in terms of customer benefits /
education
Positioning in terms of tradition / culture /
situation
COMPETITIVE FORCES AND STRATEGY
NEW MARKET ENTRANTS
SUBSTITUTES
SUPPLIERS CUSTOMERS
FIRM COMPETITOR
COMPETITIVE FORCES AND STRATEGY
Firm:
Lifebuoy: Top brand of soap division of HLL
Largest Selling Soap in India
Easily available (transportation) and affordable
Size was adjustable according to customer needs
Large sales implied large dividends for investors
Lifebuoy: Top brand in India in 1998
COMPETITIVE FORCES AND STRATEGY
Competitors:
MNCs not competitors in that area
Small newcomer Nirma gave tough competition
Godrej failed to click due to break up with P&G
P&G had pricing and positioning related issues
Other competitors had not penetrated into the
segment
Had other portfolios in hand-wash, shampoo
Prices were not meant for low income groups
COMPETITIVE FORCES AND STRATEGY
New Market Entry: The threat by Nirma
Targeted retailer by incentive schemes
Backward Integration Projects
Debt Restructuring
Cost Cutting
Low manpower and capital / Low Investment
Recession helped to move to value for money
items
New Market Exit:
Exits by others showed exit from market is not
tough
COMPETITIVE FORCES AND STRATEGY
Substitute Products:
Body Shampoo
Face Wash
Liquid Soap
Hand Wash
Premium / Popular Body Soaps
Shikakai Soaps
COMPETITIVE FORCES AND STRATEGY
Target Customer:
Income and class: Low Income rural people
Middle class and rich class of
cities
Niche market: Teenagers, Adventurous, Sportsmen
Occupation: Housewives, Petty businessmen