Unilever Lifebuoy In India Implementing The Sustainability Plan

UNILEVER’S LIFEBUOY IN INDIA: IMPLEMENTING THE SUSTAINABILITY PLAN 1

CONTENTS

THE QUESTION

THE SITUATION THE COMPLICATION

THE SOLUTION

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INDIA MARKET OVERVIEW

Majority of Indian still in strugglers and live in rural area

Household Income

Social Economy Class India > 30.800

Elite

2%

15.400 – 30.800

Affluent

4%

7.700 – 15.400

Aspires

8%

2.300 – 7.700

Next Billion

42%

<2.300

Strugglers

44%

Rural vs Urban India Maps Rural India • 83.3 crore live in rural areas • Poor sanitation • Poverty • illiteracy

BCG, MRUC 2010

Urban India • 37.7 crore live in urban areas • Overcrowding • Water quality • Waste disposal

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THE SOCIAL BENEFIT

Reduce child mortality in India is social benefit that Lifebuoy want to achieved through “hand-washing” program Origin of the Business William Hesketh Lever

“I believe that nothing can be greater than a business, however small it may be, that is governed by conscience” -doing good by doing well-

Marketing Program with Social Benefit

Help reduce child mortality in India

Child Mortality Cause in India 3% 3%

3%

Perinatal Conditions

3%

Respiratory Infections

6%

“Hand-washing” program

Diarrheal Diseases

3%

33%

Parasites Diseases ill Defined Conditions

11%

To prevent respiratory infection and diarrheal as germs generated diseases

Unintentional Injuries Nutritional Deficiencies Malaria

14% 22%

Congenital Anomalies Others

Hul.co.in, Registrar in India 2011

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CONTENTS

THE QUESTION

THE SITUATION THE COMPLICATION

THE SOLUTION

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DOUBLE CHALLENGES

Singh had to achieve 1 billion global sales in 2015 while Sitapati obligated to achieve 450 million behavior-change target in 2015 2013

2010

CEO UNILEVER Paul Polman Unilever Sustainable Living Plan -20201

halve the environmental footprint of its products

2

help 1 billion people improve their health and wellbeing

3

source 100% of its agricultural raw materials

2013

Global Brand VP Samir Singh

2015 Increase Lifebuoy Global Sales to 1 Billion Volunteered Lifebuoy to fulfill USLP 2 target

Category Manager Lifebuoy India Sudir Sitapati

2015

Bring “handwashing” as behavior-change to 450 million of people in INDIA

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PREVIOUS PROGRAM

Lifebuoy still facing challenges even after a series of relaunch & repositioning

2000

2002-2005

2009-2012

Shakti Ammas

Swastya Chetna

Singh’s Initiative

distribute Lifebuoy’s value while selling Lifebuoy’s bar soap with smaller size

Educate school children by delivering health and hygiene message through quiz

Educate mothers that lifebuoy can protect their family from flu to diarrhea

No significant difference

79% parents and 93% children wash hands but didn’t UNSUSTAINABLE last

Case Brief

Global sales increase 17% and gross profit increase 22%

2013-2015

WHAT NOW?

SUSTAINABLE STRATEGY

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CONTENTS

THE QUESTION

THE SITUATION THE COMPLICATION

THE SOLUTION

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LIFEBUOY BEHAVIOUR-CHANGE PROGRAM

Sitapati had to choose which program that should be implement in India

WHICH MARKETING PROGRAM THAT SHOULD BE IMPLEMENTED IN INDIA BY SITAPATI IN ORDER TO REACH 450 MILLION BEHAVIOR-CHANGE TARGET?

KKD RURAL OUTREACH

MP PARTNERSHIP

URBAN LIQUID

PROJECT SCOPE  Rural area  Housewives  Multi brand  Teams visiting  Small workshops at local space (Glo-germ demo, TVC, video game, prizes)  Door to door selling  Product placement at village shops

PROJECT SCOPE  Rural area  School children  Lifebuoy only (unbranded)  Partnership with school, MP government, and UNICEF  “school of five” held in public school  Hand washing program  Train teacher and set cascade program to 3 other school

PROJECT SCOPE  Urban area  School children  Lifebuoy only (branded)  Partnership with school, MP government, and UNICEF  “school of five” held in public school  Hand washing program  Train teacher and set cascade program to 3 other school

Case Brief

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CONTENTS

THE QUESTION

THE SITUATION THE COMPLICATION

THE SOLUTION

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MARKET SEGMENTATION

Based on the 3 segmentation, harmonious villager is the segment that must be “own” based on the objective Prevent diarrhea & respiratory infection to reduce child mortality

OWN

ATTRACT

ACCEPT

Harmonious Villager

Rising Towns Folk

Prosperous Metropolitan

Rural Area Madhya Pradesh, Bihar

Sub-Urban Area Karnataka, Tamil Nadu

Urban Area Punjab, Kerala,

Strugglers to Next Billion

Upper Next Billion to Aspires

Affluent to Elite

Poor Sanitation

Unemployment

Overcrowding

Price-Value

Product-Value

Brand-Value

Family Oriented

Following the Trend

Self Oriented

CHARACTERISTICS AREAS

SECS

MAJOR CONCERNS

PREFERENCES

BUYING DECISIONS

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BRAND POSITIONING

Lifebuoy positioned as family antiseptic soap that is affordable

Targeted Market Frame of Reference Point of Differentiation

Reason-toBelieve

• Harmonious Villagers

• Antiseptic Soap

Positioning Family Antiseptic Soap

Differentiation Brand Integrity

Affordable

• Affordable • Cheaper Price • Smaller Packages POSITIONING STATEMENT

For harmonious villager , Lifebuoy is the antiseptic soap that is affordable because it offers cheaper prices and smaller packages

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PROGRAM SELECTION

We should consider the pros and cons in every strategies

KKD RURAL OUTREACH

MP PARTNERSHIP

URBAN LIQUID

Rural small village hand wash workshop & visit using bar soap

Rural public school hand wash program using bar soap

Urban public school hand wash program using liquid soap

Harmonious villager

Harmonious villager

Prosperous Metropolitan

Target Segment

+ Reach

Objective fitted

+

8.500.000

+ Subject

Higher Reach

Brand Presence

Secondary

-

Sustainability

Scattered exposure

+

Cost per contact

Unsustain

-

Lifebuoy PP

Higher Price

+

Moderate

-

Soft sell (low exposure)

Sustain

+

Lower Price

+

Longest

High exposure 21-days follow up

+

Sustain

23.3

-

13.5

-

unaware One Brand

6.2

8.6

-

Primary

Nuclear Family School children

21-days follow up

6.4

-

-

Partnership (no brand)

No follow up

-

Lower Reach

Objective unfit 1.500.000

School children

Unilever multi-brand

-

-

4.500.000

Housewives

-

Objective fitted

Highest Price 3.5

+

Fastest MarkPlus Inc.

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WHAT’S NEXT?

In order to achieve the behavior-change target, Lifebuoy should….. Allocated Lifebuoy Target in India

2010

2011

2012

2013

“Hand-wash” behaviorchange reach 17 million people

“Hand-wash” behaviorchange reach 30 million people

2014

2015

403 million people gap to be achieve

Program

Reach

Estimated Target/Year

Duration of the program

Achievement

Gap

KKD Outreach

8.500.000

135.000.000

1 year

6%

94%

MP Partnership

4.500.000

135.000.000

1 year

3%

97%

Integrated Behavior-Change Marketing Effort Pre-knowledgeable

Knowledgeable

Practicing

Maintaining

Advocacy

Awareness

Educate

Commitment

Leverage

TVC

Workshop

Follow-up Program

Word of Mouth

Banner

Demonstration

Monthly Visit

Ambassador

TVC “Chamki”

MP Partnerships

“Global Hand-Washing Program”

KKD Outreach MarkPlus Inc.

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