Lifebuoy soap is the most popular soap in the entire world. It promotes a healthy and hygienic lifestyle. This report was based on Unilever’s Lifebuoy. Lifebuoy is a product with a history of more than 110. Unilever’s strategic and mission objectives are included within this report. The external and internal analysis shows what factors are affecting Unilever. The company can be informed by the outside environment through the internal analysis. The internal analysis includes the performance analysis, the determinants for strategic options and helps make future strategies based on the past. The success of lifebuoy depends on its goal, which is health and sanitation. Also, it has to meet the customer’s requirements.
Lifebuoy is a product that has a loyal following of customers. Lifebuoy’s product cycle is at a mature stage, and it needs to be changed. Lifebuoy was re-launched in a new range of products and with a new scent. Lifebuoy’s new product line is not just for men, but also for families. The goal is to make lifebuoy healthier and protect consumers from germs. Introduction Lifebuoy has been Unilever’s oldest product since 1894 when it was introduced in the UK as a disinfectant. Lifebuoy brand is a “global” brand even before “global branding” was created. In India for example, Lifebuoy has become one of the most popular brands in the country. This report contains a strategic plan for marketing lifebuoy. It covers strengths, weaknesses, opportunities, and threats. This report covers the external and internal environment, strategic mix of marketing and the recommended medium-term strategies.
The company’s strategic plan should coordinate with its overall planning. Unilever Company’s 400 brands span 14 categories including food, personal care and home. No company has so much influence on so many people. Brand portfolio has helped the company to become a leader across all industries. Lipton Knorr Dove Omo, Knorr and Dove are popular companies’ brands. Company invests $1 Billion annually in research and developement and has five laboratories worldwide that use new techniques and thinking to create products. Mission Statement: A mission statement describes the organization’s goals, its market and future plans. The mission statement is a guide to the day-to-day operation as well as the basis for future decisions. Strong mission statements build commitment, motivation and loyalty. Lifebuoy (2010) “Unilever is committed to adding vitality to the lives of people.” Brands that are designed to help people feel, look, and enjoy life better.
It also outlines the commitments to stakeholders including customers, suppliers, employees and communities. Lifebuoy has a goal to provide affordable hygiene and medical solutions to people at a reasonable price. The Lifebuoy brand was founded in 1894. For more than 110 years, it has stood for unbeatable protection and the promotion of health. Lifebuoy guarantees protection when it is threatened. In 1930, the US government launched a campaign called ‘Clean hands protect health’ to encourage the use Lifebuoy Soap.
Today, in India, Bangladesh Pakistan Sri Lanka Indonesia Vietnam and other countries, there is a campaign similar to the lifebuoy hygienic programme. Environment analysis can be applied to both the internal and external environment of business. Internal analysis The internal analysis is the process of understanding the strategic aspects of an organization. This includes the key determinants of strategy and the performance analysis. Performance analysis is based on profitability and sales, and provides a comprehensive evaluation of previous strategies. It also indicates the viability of the market for each product line. The product portfolio analysis looks at the strengths of the businesses. Its goal is to produce a mix of products that balances new and mature ones. The past and current strategic problems of the product are determinants for strategic options. Mills, 2005. P. 56-58. Here are some of the key points for internal analysis: Technological, governmental, economic, cultural, demographic. 2. Performance analysis: New products, employee performance and capability, profitability, sales. Shareholder value analysis. Customer satisfaction. Customer analysis, including segmentation, motivations, and unmet need. 4. Determinants for Strategic Options: Organizational capabilities, constraints and strengths. 5. Analyse of the industry/competitor: Image, strategy, performance, culture, objectives, cost structure. Analysis of the market: Size and projected growth. Profitability, entry barriers. Cost structures. Distribution system. Trends. Source: Mills (2005, p51). External Analysis Unilever’s goal is to make all of its products affordable.
Changes in technology are made by the company to meet current trends. Everyone has different budgets, tastes and lifestyles. When designing shower gels or soap bars, the organization pays attention to the market requirements and consumer preferences. Organizations base their decision on market characteristics and customer analysis. Mills, 2005 p50). The key/critical success factor. These are the factors that determine the success of any business. It is used a lot to highlight or identify key factors that companies should be focusing on to succeed. It is defined as “the small number of areas that will provide satisfactory results and ensure successful performance of individual departments or organizations” (Critical Factors, Analysis, 2009). Key success factor can also be developed by using the mission statement of the company, list of requirements and problem-solution matrix. Lifebuoys are based on a number of factors, including: Health and hygiene. ‘Swathya Chetana’ programmes. Market changes require a keen awareness. Understanding of the buying process and motivations behind customers’ purchases.
Promotion impact and magnitude High product quality SWOT analysis Promotion impact and magnitude High quality product SWOT Analysis SWOT includes both internal and external analyses to summarize the strengths, weakness, opportunities, and threats. The standard SWOT structure includes four essential components. It encompasses the firm’s traits, such as its strengths and its weaknesses. Also included are the factors of competition that the company faces within its own environment. (Novicevic, Harvey, Autry, & Bond, 2004) The dual perspective swot analyzes the controllable & uncontrollable factor in descriptive and evaluative competitive factors. This includes desirable and undesirable factors. The company can control its strengths and weaknesses, but not the opportunities or threats. Organizations want to be strong and have opportunities. Unwanted factors include threats and weakness. Brand Lifebuoy is a strength in and of itself for the company.
My research shows that since 2000, the classic Lifebuoy bar has undergone major changes to provide a better hygienic protection to consumers and to make the washing process more pleasant. The new lifebuoy signature shape makes it easier to use and grip. Brand created a new formula that offers even greater germ protection and produces a rich lather. Lifebuoy is now more than a soap. It provides hygienic and health solutions for families. The strength of lifebuoy is the brand name and loyal customer. It also includes an affordable price. Lifebuoy has a leading position in the Indian market. Lifebuoy is a market leader in India. Lifebuoy could increase sales by adding more fragrances to its product line.
Strategic Thrust Strategic Thrust can be defined as a general statement of actions. The purpose of strategic thrusts is to establish a shared understanding about the actions that are planned for a planning horizon between three and five years. The four strategic thrusts have been defined by the company. First, the company will have thoroughly reviewed its entire brand portfolio before deciding to focus on just a few key brands. This brand is chosen based on a number of criteria including its size, brand strength and relevance, competitive advantage, growth potential, and brand value. This brand would receive a disproportionately large portion of the company’s marketing budget, as it will have a high level innovation and true consumer insight backed up by new technology platforms. New technology allows for a reduction in cost, and makes the company more competitive with low-priced competitors. It also improves the quality of their product. The brand is the main strategic focus. The second thrust of strategy is to look for growth in new channels. It reflects the emergence of new consumer opportunities. Lifebuoy was one of the first companies to offer emergency mobile laundry facilities in London. Lifebuoy’s vans had hot showers as well as soap and towels. The company has appointed market activation managers to focus on new strategies and innovative marketing promotions. Third, continue to lower the cost. The company is gaining media scale benefits, as well as efficiency. It also explores other shared service options. The company will also keep a close eye on its overheads and corporate center costs.
Fourthly, the fourth strategic thrust is building a culture of proactivity, flexibility and rapid movement within an organization. It is also improving the link between rewards, actual performance, and corporate centre through a combination variable pay bonus and stock related schemes. Product Lifecycle Just as a human is able to pass through the cycle of life, every product can also do so. Every product has four main stages. Four stages include the introduction, growth, maturation and decline stages. In the decline stage, the product will need some innovation or changes. Since 110 years, Lifebuoys have been around.
The product life cycle for the lifebuoy goes as follows: This is a stage where the product first enters the marketplace. Two price strategies can be used to enter the market. Price penetration is one and price skimming another. Price penetration means that the product is sold at a higher price than the market price. The skimming strategy is a lower price than the competition. The growth stage is where the consumer becomes aware of the products through various promotional methods.
Sales of this product will rise. In this stage the brand lifebuoy takes over the market. This is the stage where price does not matter much. Lifebuoy increases sales at this stage. Maturity Stage: This is when the product’s sales become more stable. The sales fluctuate a bit, but not much. The competition will increase and reduce sales. The product that is similar to the one sold by lifebuoy will also be introduced in the same marketplace. Dettol, for example, launched its antiseptic detergent. The product sales will be stable.
The decline stage will occur once sales have stabilized. The product will need to be changed at this stage. The product may have a new flavour or expand its product range. Lifebuoy was re-launched in a new fragrance with increased germ protection. Lifebuoy is expanding its product line to include lifebuoy talcum, shower gels and more. Marketing strategy A well-planned market strategy is vital for business growth. Marketing plans are the main basis for making decisions. Marketing strategy helps to define business goals and develop activities to reach them.
It is important to understand the unique selling proposition of the company, as this is what separates the product from other products on the market. What makes the product unique? Why should consumers choose this product? Strategic planning requires that you consider these points. The target market is next. Which consumer segment is targeted by the product? Now, it’s time to decide on the product positioning and marketing methods. India is India’s largest market. Lifebuoy has the largest market share in India. Lifebuoy wants to make hygiene and health products affordable and accessible to the public so that they can live their lives without worry about hygiene, health risks and other concerns. Lifebuoy will be able to reach the vast majority of rural markets in India if we choose this country as our target. Rural customers earn their daily wages, so they do not typically have a monthly salary. The strategy is based on what appeals to rural consumers and the packaging needs to be changed.
In India, rural consumers are interested in low-priced unit packs. The packaging will be smaller and cheaper to make it more affordable. Lifebuoy must target the second market segment of people who buy shower gels, by providing more fragrances for the bathgel and by focusing on the users. Repositioning Lifebuoy In my research, I discovered that Lifebuoy has a reputation for hygiene and health. Lifebuoy uses a brick-red soap with a particular fragrance. Lifebuoy has reached the stage of maturity in its product lifecycle where changes are required. The product does not compete with other products on the market. The company decided to change the fragrance of lifebuoys and expand the product range. In India Lifebuoy targets rural consumers. The new Lifebuoy product is a brand new product. It has a new formulation, fragrance and lather profile. 70% of Lifebuoy sales are from rural India. The lifebuoy soap is now toilet soap, not carbolic with cresylic fragrance.
Lifebuoy now targets the entire family. It is no longer just men. Lifebuoy’s latest range includes Lifebuoy’s Active Red, Lifebuoy’s International Plus, Gold, the Shower Gel, and Talcum powder. Lifebuoy International range is for the upper-end consumer. Marketing mix Marketing mixes refers the main elements to be addressed in order for a product to be properly marketed. Marketing mix includes 4 Ps: Product, Place, Promotion, and Price. Product: Describes in detail the product and its benefits, as well as any special features.
A product must be able either to satisfy the current and specific demand of the market or to create it by creating a strong brand. Lifebuoy, the world’s most popular soap, offers many health benefits to families. As a result, Lifebuoy became the world’s largest-selling soap. Lifebuoy, the most popular soap brand, was relaunched by the company in 2002. Its new formula and positioning made it more appealing to existing and potential customers. Mew’s lifebuoy helps protect against germs and bacteria that cause stomach, eye and bruise infections. New mixed formulation gives bathing a much better experience. The new formula, the new health perfume, and the superior skin-feeling, as well as the popular color red, have registered a definitive and clear preference with both new and existing users. Price is a major factor in the success of a product. Pricing is elastic for more common products and services. Price is the most important factor in determining the success of a product or service. Lifebuoy’s goal is to match smaller competitors in price. The company has announced a new pricing policy, introducing a smaller size pack in order to increase volume. The company has announced a new price policy with the introduction of a smaller size pack to get more volumes.
Place refers to how a product will get to its consumer. Distribution channels such as wholesaler, distributor, warehouse and transportation will allow the product to reach consumers. The sales will be affected by how the product reaches the consumer. Lifebuoy will try to reach all rural areas in India by using a single channel of distribution. Project streamline is a long-term benefit for the company. To reach every customer in rural areas, the company appointed a sub-stockist. How does the customer learn about the product through promotion? There are various ways for the customer to learn about a particular product. This includes advertising, public relation, point of sales, displays and word-of mouth.
Promoting a product is a great way to close the information gap that exists between buyers and sellers. Promotional budgets and product types will affect the amount of promotion. Lifebuoy’s contribution to the total turnover will be significant. The company’s sales dropped as consumers switched from soaps based on carbolic to soaps with a more pleasant fragrance. The team of the agency concentrated attention through print and television campaigns on family health issues. Swasthya Chetana’s project covers rural areas. Company offers lifebuoys with other products as a marketing promotion. Discover the history of health and Lifebuoy in the development of vaccines, infections, and germ protection. Lever found carbolic acid while looking for a formula of soap that would be effective against germs, but affordable for everyone.
