Unilever’s Lifebuoy In India: Implementing The Sustainability Plan

Unilever’s Lifebuoy in India: Implementing the

Sustainability Plan

A Case Analysis

Group 4 (19PGPIM082 – 19PGPIM88)

1

Table of Contents

Company History…………………………………………………………………………………….. .2

Vision, mission and Strategic Objectives of the Organization………………….…………………2

Timeline …………………………………………………………………………………………………………………. 3

SWOT Analysis of Lifebuoy ………………………………………………………………………………………. 4

Marketing Mix of Lifebuoy …………………………………………………………………………………………. 6

Lifebuoy’s Macro Environment ………………………………………………………………………………….. 7

Lifebuoy’s Micro Environment ……………………………………………………………………………………. 8

Major Problems Faced by Lifebuoy(and Unilever) since its inception ………………………………. 8

Current Situation …………………………………………………………………………………………………….. 9

Reviewing the alternatives available within the company ……………………………………………….. 9

Plan of Action …………………………………………………………………………………………………………11

Mind Map ………………………………………………………………………………………………………………12

2

Company History

In northern England, Lever & Co, begin producing a new soap containing copra or pine kernel oil, to

help it lather more easily than traditional soaps made of animal fats. It was “to make cleanliness

commonplace; to lessen work for women; to foster health and contribute to personal attractiveness,

that life may be more enjoyable and rewarding for the people who use our products.” Unusually for

the time, William Lever sold it wrapped in distinctive packs with a brand name – Sunlight. In the

year that the Lever Brothers become a limited company, sales of Sunlight soap have boomed to

nearly 40,000 tons a year. As a result, the business starts expanding into Europe, America and the

British colonies with factories, export businesses and plantations.

With a growing interest in public health and personal hygiene, Lever Brothers create a new product

called Lifebuoy Soap in 1894.. It uses carbolic acid to combat germs but remains affordable to

everyone. But with supplies of oils and fats struggling to meet the demand created by fast-growing

soap, Lever Brothers focused on securing stable sources of raw materials.

Between 1906 and 1907 the Dutch margarine industry sees its competitive strength weaken as

increased supply of butter lowers the value of margarine. during the 1920s the margarine market

suffers as butter becomes more affordable. In 1930, seeking sourcing economies for their common

raw material of palm oil, Lever Brothers and the Dutch margarine producer Margarine Unie merged

to create Unilever.

Vision, Mission and Strategic objectives of the organization

Unilever’s corporate vision is “to make sustainable living commonplace. We believe this is the

best long-term way for our business to grow.” This vision statement puts emphasis on

sustainability, especially among consumers. Commonplace sustainable living is a core component in

Unilever’s corporate vision statement. Unilever understands the importance of sustainability and

other market trends shaping the industry. Moreover, the vision statement reflects the company’s

view of sustainability as a way to maintain business growth. This vision statement aligns with

Unilever’s corporate social responsibility strategy to address business stakeholders in the

consumer goods industry.

Unilever’s corporate mission is “to add vitality to life. We meet everyday needs for nutrition,

hygiene and personal care with brands that help people feel good, look good and get more out

of life.” This mission statement underscores how the company satisfies customers in various

aspects of their lives.

Timeline

1894– Customer need to fight the disease rampant in British urban centers was met by the

product based on carbolic acid Lifebuoy and was positioned as life-saving soap Targeting the

working population by setting an appropriate Price when soap was considered a luxury.

1894-2000- Product grew as the most familiar brand and country’s leading health soap in the

country.

2000– Indian economy stalled (Macro-economic Factor) leading to reduction in soap market by

9.3%. Stiff competition and preferences of people (Micro-economic factor) made Lifebuoy look

like a cheap soap and thereby resulting in reduction of sales by 20% during 2000-09. But, the

company saw huge potential (Star) for growth in rural India as 70% of sales of the brand are from

villages and the current reach to villages was just 46%. So they tried to increase the revenues by

improving Placement by an innovative solution called Shakti Ammas. Though distribution

improved the sales didn’t soar.

2001– Lifebuoy for the first time since inception Re-Positioned itself as a Family soap and

Promotion was aimed at women as opposed to their early strategy and the bar was now a milled

toilet bar that promised a Contemporary health fragrance and better germ protection but at the

same price.