Lifebouy

A snapshot of Samir Singh’s 3 years as Global Brand VP

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FOCUS ON ARCHAELOGICAL REVIEW

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HOT SPOT CENTRIC MARKETTING EFFORTS

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PRODUCT DEVELOPEMENT

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GROSS SALES INCREASE: 17% per annum GROSS PROFIT INCREASE: 22% per annum

Challenges faced by Samir Singh

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The iconic Unilever brand struggling Global Market Share dip: 11.2% to 9.7%

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The Unilever Sustainable Living Program

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REPOSITIONING AND RELAUNCH FAILURES

THE DETTOL CHALLENGE

ACHIEVEMENTS AND SHORTFALLS 1

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IN 2013, Lifebuoy's 3 year 17% average annual growth rate made it Unilever’s fastest growing brand outpacing Dettol's growth rate for the first time. But despite strong recovery in sales and profitability , handwashing change programs reached just 17 million people in 2012 which was well below the trajectory needed to achieve 450 million by 2015. Large payback periods for behavior change programs made it difficult for budget allocation

Paul Polman’s USLP Strategy

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Focused on reducing environmental footprint by halve of making and using its product Source 100% of its agricultural raw materials sustainably

Help billion of people to improve their health and life

USLP’s bold sustainability goals over financial objectives 1

USLP targets were embedded in all key business decisions – This is at the core of their business. And this was not their CSR agenda

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To be successful making contribution to the society will be the central part of their business model. This will help them achieve both their sustainability goals and financial objectives.

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So most managers incentive compensation were still tied to their financial objectives, USLP targets were monitored and independently audited by PWC and reported to company’s management system.

Implications of USLP on middle managers like Singh and frontline managers like Sitapati  1

Global brand VP Samir Singh decided to return the brand to its roots- offering protection from diseases spread by germs. This will lead to educate consumers on the consequences of germs.

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Focusing on hot spots – times of the year such as monsoon, school re-entry, crowded religious festivals. Having each country’s specific hot spot.

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Sudir Sitapati, HUL’s category manager for lifebuoy introduces the model of Urban Social Liquids Initiative where they focuses on Lifebuoy Liquid Handwash which has the potential to change behaviour and also boost profit. To implement this, Indonesia’s School of Five educational program was adapted.

As Sitapati, what decision would you make regarding the three handwashing behavior change programs that have been proposed? What risks and benefits are associated with each? 1

• First Option- KKD Rural Outreach Initiative The first Initiative showed good results initially but later as KKD moved to smaller, more remote villages, such visits started becoming decreasingly cost effective. Also, the initiative did nit result in sustainable behavioral change. The suggested changes by Sidibe’e team would lead to slower delivery and increased cost. The break even on investment was also 8.6 years. The first option doesn’t look that lucrative to be included in the budget.

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• Second Option- MP Partnership The second initiative was time consuming and had a long playback period but it could reach pilot program. The training made effective change agents who could influence family behavior. Estimation of 900000 kids could change the behavior of 4.5 million people. It may lead to program’s adoption by 47 MP Districts. The model should be included in the budget.

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• Third Option- Urban Schools Liquid Program The third initiative is the most effective behavioral change option and also has the potential to change behavior and also boost revenue and profits. The liquid hand wash market was growing drastically at 40% rate annually. The payback period is low- 3.5 years. The model should be included in the budget.

As Singh, what action, if any, would you take to influence Sitapati’s decision? What would you do if he chooses not to implement either of your preferred Jakarta models?  

In order to influence Sitapati’s decision, Mr. Singh should bring to his notice that the two options provided would help the company to increase brand awareness and help them achieve USLP behavior change Target. It would also help them in achieving their global strategy of “Reclaiming the Heritage”. The results from these two models would help in achieving the USLP Target which were shown in Annual report and also closely monitored by PwC.

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1st Model- Khushiyon ki Doli was a collaborative multibrand effort that crated a direct contact program to reach remote rural village with all the products. The Glo-Germ demonstration was an effective program. The model initially performed well and helped in increasing market share of lifebuoy. If the school component and five non-negotiables are added to the presentation than the model would be able to achieve sustainable behavioral change outcomes.

2nd Model- MP Partnership Initiative training teachers and initiate behavioral change. The model was effective as it provided training made children made effective change agents which could influence family behavior. Estimation of 900000 kids could change the behavior of 4.5 million people. It may lead to program’s adoption by 47 MP Districts.