Design and communication strategy for Lifebuoy’s re-launch

Rural India has ample of opportunities all waiting to be harnessed for the much-needed volumes. Not astonishingly, it has become the latest marketing catchword for most FMCG (Fast Moving Consumer Goods) majors. Some of the requisites for making an impression in the rural market include:

1) Strong distribution channel
2) Minimum profit margin
3) Simple marketing message
4) Lesser-priced packs to increase affordability
5) Packaging in smaller units and localised design that attracts consumers
6) Convenience of storage while use
7) Thorough knowledge of the village psyche
In brief, the strategy revolves around what attracts rural consumers to a product.

Hindustan Lever Ltd. (HLL) is one of the few FMCG’s to be highly successful in rural India. It has been a pioneer in reaching out to the smallest of villages with innovative products. HLL is also open to the idea of building rural-specific brands since it will only dispel the marketing media effort for the brands. Today, HLL’s brands have become household names. No one knows Indian consumers better than HLL. The company has access to both global and local research, technology and development teams. It is fully supported by its nation-wide manufacturing and distribution network.



HLL is India's largest marketer of home & personal care products, foods & beverages. Recently, it launched “Pureit”, which is an in-home water purification system that gives water ‘as safe as boiled water’. It is also the largest exporter of branded FMCGs, marine products, basmati rice and one of the global players in castor.

When we speak about HLL, the first name that comes to our mind is Lifebuoy. It was sold in India as early as 1895, but was officially launched and marketed from 1935. For over 100 years, Lifebuoy with its distinct perfume and catchy jingle was associated with health and well-being, making it the world’s largest selling soap brand. Its ads carried the message that Lifebuoy washed away germs and kept one protected and healthy.



Lifebuoy is among HLL's power brands which contributed to nearly 30% of the company’s detergent turnover and was a leader in the carbolic segment with almost 95% market share. It went through a major re-launch for the first time in 1964 with a change in product formulation, shape and packaging. In mid 2001, HLL then launched Lifebuoy Active and Lifebuoy Extra Strong. However, these launches led to a minimal turnaround. For nearly 107 years, the brand hadn't undergone a major restructuring and repositioning. The sales were declining since consumers were shifting from carbolic based soaps to beauty soaps with better fragrance and lather.

The decline of the brand, prompted HLL to re-think its marketing strategy. Lifebuoy underwent a major turning point in its history with the re-launch in 2002, 2004 and again in 2006. The re-launch was done to beat the slow-moving sales. To register positive preference among consumers, HLL challenged everything that Lifebuoy stood for.

Lifebuoy is now an entirely new mix with a superior formulation, fragrance, lather profile and a contemporary shape. It offers an improved bathing experience and skin feel. The new Lifebuoy is targeted at today’s astute housewives who seek family health protection. It made a thoughtful shift in positioning from being a male soap, champ of health to a family soap with a more reliable health protection against germs for the entire family.

The new range includes Lifebuoy total, Lifebuoy deofresh, Lifebuoy nature, Lifebuoy care, Lifebuoy activ fresh, Lifebuoy International Plus, Lifebuoy International Gold, etc. Apart from this, Lifebuoy also offers specialised products like Lifebuoy HandWash and Lifebuoy Clearskin, which provides treatment and protection against acne.



HLL did huge rural campaigning using the idea of hygiene as a podium to reposition its brand. The company devised a strategy to ensure its focus on family health themes via TV and print campaigns in the rural markets. They conducted consumer education exercise using "Germ tests" through multimedia. They also explored the opportunity to spread message during World Health Day. HLL also launched Lifebuoy Swashthya Chetana, the first single largest rural health and hygiene educational program. The campaign aimed at educating children and community about the threat of unseen germs and maintaining good health through practice of basic hygiene.

HLL used innovative communication tools at melas, festivals, haats, etc. to spread awareness about hygiene and health by product demonstrations. These techniques were used in order to change the hand-washing and bathing habits in rural India. For example, people in mela were asked to put their hands below a special camera where they could see the germs on their hands and were asked to wash their hands with Lifebuoy and see the difference. Hand-carts were also displayed at the company’s stall for attracting more people.

Ideas like putting stickers on hand pumps, walls of the wells, putting tin plates on trees surrounding the pond were some of the innovative media utilised by Lifebuoy. The idea was to market the product not only at the point of purchase but also at the time of consumption. Other media techniques used were shop-fronts and cinema van operations having films and audio cassettes with songs and dance sequences from popular films that comprised ads of HLL products during breaks. The reach of conventional media is not that effective in rural markets. Moreover, it is not always viable to cover all these markets due to high costs involved. Yet, these markets are vital since the growth potential is high. Operation Harvest served as a medium to augment the role of conventional media in rural India and in the process built relations and loyalty with consumers.



HLL has always been at the front line of trying out with innovative schemes to reach rural consumers. It deliberately introduced small-sized packs of Lifebuoy targeted at rural markets. Cross company product mixes were also offered to lure consumers. To induce growth, HLL dropped the prices of its products and has been also trying to upgrade its consumers by cannibalising its own brands.

Rural retailers and quick product availability influence the purchase decision of rural consumers. HLL therefore undertook projects to enhance the rural supply chain by a network of sub-stockists and 'Project Shakti' in partnership with the Self-Help Groups of rural women. These Self-Help Groups acted as direct-to-home dealers. In rural India, women are the catalyst of change and that is why Project Shakti kept women in focus. It is they who give Shakti its strength. Project Shakti has proved to be a great marketing venture for HLL since it works in both terms which is promotion as well as a distribution network with social welfare benefits. The model created a win-win partnership between HLL and its consumers, some of whom depended on the organisation for their livelihood and helped building a self-sustaining virtuous cycle of growth for all. Another good initiative taken by HLL under Project Shakti is `I-Shakti', an IT-based rural information facility that provides solutions to major rural needs such as agriculture, education, vocational training, health and hygiene.

Rural markets are still evolving and there is no fixed layout to understand consumer behaviour. Lot of research is yet to be conducted for understanding rural consumers.

Colgate's Suraksha Chakra growing strong in rural India

Rapid change in lifestyles, improving infrastructure and rising income have altered consumption patterns not only in urban but also in the rural areas. Growing demand for high-quality personal care products has been one of the main reasons for the shift in consumption patterns. In the past, product marketing has remained primarily an urban phenomenon, but in recent years due to the increasing education levels and increased awareness created through media, the rural market has been growing as well. Increasing brand consciousness and expanded disposable incomes are jacking up the appetite for these products.



Companies have long realised that to increase sales volume they will have to reach outside big cities. In several categories, rural India accounts for the lion's share. Rural households form around 72% of the total households in the country. Spending in this segment is growing rapidly and consumption patterns are closing in on those in urban areas.

Today, no consumer goods company can afford to forget rural market which is a very big part of the Indian consumer market. You cannot build a brand presence in India until you have the strategy for reaching the villages. Companies that have figured this out are doing better in villages than cities. The potential is huge for companies that develop effective rural marketing strategies. Up-gradation of products is being witnessed on fast-emerging consumption pattern in rural areas. Local and branded products are getting replaced by national brands and low priced by high priced.

Several European and US companies have been making inroads into rural India for years. Among the U.S. firms, Colgate is one such company that has made considerable headway. The company has been long known to dukaandaars and merchants in rural India.

Colgate is one of the leading providers of scientifically proven oral care products in India, including toothpastes, toothpowder and toothbrushes. The company is spending on advertising according to its market share and leadership position it enjoys and is conscious about what it costs.



For marketing to rural consumers, you need to persuade them to try and adopt products that they may have not used before. A company like Colgate has to convince people to change to toothpaste instead of using neem twigs to clean their teeth, which was the traditional practice. This is difficult to do and requires patience and investment by the company. It's not like getting someone to switch brands.

Rural India presents huge opportunity for the company to grow its market. Therefore, Colgate continues to focus on expanding its rural distribution. They keep conducting various programmes with massive rural sampling and seeding exercise for Colgate, targeted at non-users and infrequent users of dentifrices.



In rural areas, people use neem and other substances for cleaning their teeth. Even after keeping the products low priced, people were not willing to use the toothpaste. Hence, Colgate conducted a research to show that neem sticks don’t do much for oral health as they only massage the gums, which even a toothbrush can do. For upgrading these users to use toothpaste, which also generates demand for toothbrushes and to penetrate deeper into rural households, Colgate is constantly conducting oral care awareness programmes. It also actively participates in local festivals.

Colgate resorted to keep their products low priced than its arch-rival, Hindustan Lever. As a result, Colgate Gel, Total, etc. are priced marginally lower than similar offerings from HLL. Colgate's dominant position in toothpowder and lower-priced products has helped in increasing sales. This is significant as rural market growth rates for FMCG products have been higher than urban market over the past years.



Colgate has been also quite active on the new products front. The company launched Cibaca Top and Colgate Herbal, two low-priced brands targeted at the semi-urban market. Colgate's low price offers have also helped to enhance usage levels. The shift in consumer preference from gel-based to white toothpastes, has also worked in Colgate's favour, since the company has traditionally been the market leader in this segment.

Colgate’s commitment to deliver superior quality products and their aggressive investments in brand building has been well received. To be continually rated as one of the top brand in an increasingly competitive environment, is a reaffirmation of the trust, loyalty and confidence reposed in Colgate by millions of consumers across India. Today, every second user of toothpastes uses Colgate and one out of every three toothbrush user’s brushes with a Colgate toothbrush.



With rapidly evolving consumer preferences, Colgate has been spearheading changes across different product categories through a series of product innovations. The company has launched a series of superior quality oral care products with trend-setting innovations at affordable prices. It includes technologically advanced toothpastes, a herbal toothpowder and a series of specialty designed toothbrushes. All these products are having strong consumer acceptance.

Today, Colgate has become an essential part of daily oral hygiene and therapeutic oral care. It is one of the most widely used and recommended brands by dentists.

Gandhi, the father of modern India, believed that the country's future lay in her villages. These days, every major business group that plans to move into the hinterland would agree. However, the level of affordability in rural India is low. For consumers to buy products, you have to first put more money in their pockets. Create a virtuous circle of raising rural incomes which leads to increase in consumption. This new business culture I am talking about is not charity or philanthropy. It is about doing business with social benefits. It will help us to sustain the economy and bring in lots of human satisfaction to all of us. You can't think of success just in financial terms. Getting goodwill and recognition in the rural market is also not a small asset for any company.