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TRANSCRIPT
Case No. 01 TATA SALT
The 'Meine. desh ka namak khaya hat TAT A advertisement campaign in 2002 offered
viewers an instant connection. In India, salt and loyalty have been associated from time
immemorial. 'Namak halal and 'Namak haram' are commonly used terms for honest and
dishonest people respectively. According to cultural connotations, after consuming salt at a
person's house the one who has consumed the salt should not cheat his/her host. The
campaign connected with the consumer at an emotional level.
TAT A Chemicals Ltd (TCL) started manufacturing salt in 1939 after establishing a solar
salt works at Mithapur, Gujarat. It pioneered the concept of iodized and vacuum-
evaporated salt in India in the early 1980~and created a need that was not felt by
consumers before. Interestingly, the opportunity Came accidentally, when in 1983, the
company Q~~ded fresh water for its boilers that produced soda ash at its Mithapur plant
in Gujarat. As fresh water was, scarce in the area, the company began processing sea water.
Salt of high quality was the byproduct. Estimated to be worth Rs 10 billion, TAT A has. a 21
% share in the packaged iodized salt industry, in India. According to A.C. Neilson in Brand
Track 2002-03, 90% of the people surveyed across the country had tried TAT A salt at least
once. The salt market is pegged at five million tonnes out of which 1.5 million tonnes is of
the branded variety. TAT A salt leads the market with a 40% share. According to analysts,
TAT A was able to get the leadership position in the category as it had the first. mover
advantage. Some competing brands include Annapurna from HLL, Dandi from Kunwar Ajay
Industries, Shudh from the Nirma group, Captain Cook from DCW Home Foods, Ashirwaad
from the ITC stable, besides some international brand like Cargil and Congra. From
vaccum-evaporated' to 'iodized', from 'free flow' to 'danedal, one does not see much brand
differential among competitive brands, hence the need for a strong and memorable
advertising plank and better packaging. One finds vigorous ad. vertising by major players in
the mass media. Looking at the overseas potential, TATA, according to industry buzz, is
exploring the Middle East market and those of neighbouring countries like Nepal and
Bangladesh.
Tetley's overseas distribution network could come in handy for marketing the salt in
these coun. tries. In order to expand the user base, TAT A salt that is priced at Rs 8 per
kilogram, against un. branded salts at Rs 3-4 per kg. The company has launched its
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economy brand' Samundal at Rs 5 per kg. Purity, trust, and value have been tJ;le planks of
its communication strategy. The earlier catch-line, 'Namak ho TAT Aka, TAT A namaK, was
changed to 'Desh ka namaK when more competitors came into the market, and the need for
an emotional bond was felt (Figure 1.10). Besides an aggressive ap. proach to branding, the
company improved packag. ing, sales, and supply chain management. Figure
1.11 (see Plate 2) shows its new packaging. According to company sources, consumer
research by TAT A Chemicals in June 2002 revealed that people had a sense of insecurity
and a disgust for corruption, which they thought were eroding Indian democracy. The
insights that the research provided helped in tapping patriotic and nationalist fervour. TAT
A took the opportunity to be associated with the universal theme of 'remaining true to
one's salt and to one's country'. This was the philosophy behind the 'Meine desh ka namak
khaya hat tagline. The new packaging, with the visual of delectable cuisine, backed this.
'Vacuum evaporated' and 'iodized' were clearly written on the pack-a plank that other com-
petitors also used. The advertisement with the visual of a banana leaf and a pinch of salt in
a corner (a traditional serving in South India) with the headline (Figure 1.12): 'To Indian
housewives, our salt always comes first' and the catchline 'Meine desh ka namak khaya hat
was considered by analysts as amongst
the greatest advertisements when it appeared. In order to connect with communities,
TATA salt has used public relations to sustain the brand on a longterm basis. Since the
launch of the' Desh ka namak campaign in 2002, during some specified months, a small
percentage of money that accrues from the sale of TATA salt is set aside for economically
disadvantaged children. In the two years since the launch, 25,000 children have been
provided with one year of education.
Questions
1. Salt is a generic product and is basic to human existence. Why then, in your view, is
there so much competition and rigorous marketing in this category?
2. Who are the major players in the branded salt category and what are their advertising
planks?
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Case No. 02 The Lever experience
Hindustan Lever Ltd (HLL) is one of the companies that successfully made inroads into the
rural heartland of India. However, it has been a long and tedious journey for the company.
The company continuously innovates to make new breakthroughs. HLL, according to an
insightful media study, has used the increasing media reach and penetration to its
advantage to reach places where the media has a presence. It has come out with low unit
price packs of products such as premium stain removing detergent Surf Excel, beauty soap
Lux, talcum powder Pond's, toothpaste Pepsodent, and skin cream Fair and Lovely. Like HLL,
other companies have also developed rural-specific products or pack sizes. In 1998-99,
HLL launched a major direct consumer contact titled Project Bharat, which covered 2.2
crore
households. Each house was given a box priced at Rs 15 which contained a low-unit price
pack of shampoo, talcum powder, tooth paste, and skin cream, along with educational
literature and audiovisual demonstration. According to company sources, the project has
helped 'eliminate barriers to trials and protect product category and brands'.
In 1998, the company launched Project Streamline to further extend its network by
identifying sub stockiest in large villages, connected by motorable roads to a small town.
These sub-stockiest are expected to use various kinds of transportation like scooters,
cycles, and bullock-carts to sky connected with nearby smaller villages. This strategy has
paid the company richly, as it has been able to cover 46% of the rural population.
During the last five years, the company has strengthened its network through mutually
beneficial alliances with rural self-help groups (SHGs). Government offices, NGOs, financial
institutions, etc., are aligning together to establish SHGs to alleviate poverty through
sustainable income-generating activities. HLL launched a project called Shakti in 2001,
under which SHGs were given the option of distributing the company's products as a
sustainable income-generating activity. There has been a tremendous response from the
SHGs. As the women were already grouped together for micro credit operations, they saved
money from their daily wages or crop sales and pitched in with HLL for what seemed to be
an interesting proposition-buying HLL products through some of their savings and then
selling them to their friends and neighbours. Amway, Oriflame, and Avon have already
ventured into middle-class urban India with a similar strategy with resounding success in
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various places. For HLL, the direct sale model was a departure from its stratified
distribution channels and trained sales staff. Started with 50 SHGs in Nalgonda district of
Andhra Pradesh, the project has already been extended to 400 groups in five districts in the
state. The company is planning to start such pilot projects in other states also. The success
of Shakti is yet to be gauged fully. According to industry analysts, in some villages of
Andhra Pradesh, women who bought sachets of shampoo and soap bars are struggling to
sell them to make a margin, while in other villages the women have made quite a success of
the venture.
In 2002, HLL launched another project with largescale direct contact called Lifebuoy
swasthya chetna (Lifebuoy health awareness), which was slated to cover about five crore
people in 15,000 villages in ten states. The project, according to HLL, was intended at
generating awareness about good health and hygiene practices and how the simple habit of
washing hands with soap was essential to maintaining good health. Handled by O&M
Outreach, the integrated communication used multiple contacts, which included child to
child contacts, mother to child contacts, and contacting students at schools. Four 450 health
development assistants were involved in I bringing the message to the target audience.
They would conduct the glow-germ test to show respondents the unseen germs on their
hands and how they vanished after their hands were washed with Lifebuoy. The agency
involved both senior citizens and children in carrying forward the campaign: Swachch
rahenge-swasth rahange (If you are clean, you will remain healthy). At the Kumbh
congregation in Allahabad in 2002, HLL executives were seen waving an ultra-violet light
wand over attendees' hands to show them where germs and dirt resided.
To promote Unilever's 106-year-old product Lifebuoy as a mass-market brand of soap in
India, the company has used interpersonal communication to pitch in the rural heartland.
Performers including magicians, singers, and dancers get on to a make. shift stage and offer
a bit of local news. In one of the simulated scenes, performers take on the role of rural
labourers. When one of the labourers says that he is worried that he is not well enough to
work, the other retorts that when his body is covered with dirt and mud, how can he expect
to breathe and feel strong? And if he is not strong, he cannot even support his family.
Variations of this message are rendered to the assembled audience in a catchy tune
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accompanied by music. In the backdrop is a banner of Lifebuoy soap
According to the news story, after having produced more than 7,000 such live shows
across the length and breadth of the rural heartland promoting Lifebuoy, HLL is still not
sure what the best method of connecting with consumers is. Ogilvy Outreach, the rural
marketing arm of advertising agency Ogilvy and Mather (O&M), which is in charge of more
than 30 HLL brands, is said to have recruited local magicians, dancers, and actors to build
various brands in the rural heartland of India. Fifty teams of 13 per. formers have been
recruited to serve as a link between the brands and rural residents. Distribution of
products in the rural areas pose peculiar problems, as referred to earlier. Only those
companies that are able to strengthen this aspect of marketing can be successful. HLL, over
the years, has been able to establish about 33 lakh outlets. As a strategy, the company
began by opening outlets in villages adjacent to small' towns. The company's stockiest in
these places were made to use their infrastructure to distribute products to retailers in
these villages. Until 1995, only those villages that had motorable roads were covered.
HLL's media strategy to promote its various projects
HLL, for decades, has used non-conventional media such as wall writings, cinema vans
(video in wheels), weekly markets/haats, fairs, and festivals. Cinema vans have been
trudging the hinterland with popular movies that are interspersed with product promos.
The sales force also gives demos on the use of the product. The weekly haats allow them
opportunity to address consumers spread over many tiny hamlets at one location. The
occasion is utilized to interface with consumers and give them product demonstrations.
This has been successfully used for detergents and soaps. The demonstrators explain to the
consumers how to clean dirt and also how 'visible' clean is not necessarily hygienic. They
also tell people how using soap is essential to prevent infection.
At HLL, every management trainee begins his career by spending six to eight weeks in a
village, understanding the market, the people's psyche, etc. Marketing executives make
frequent visits to low-income rural areas. Managers are trained on how to talk to and listen
to consumers. According to HLL sources, their R&D laboratories work full time to make
low-cost products for rural consumers. A constant effort to understand the behavior of the
people has helped HLL to gather some interesting consumer insights, which have resulted
in innovative product development.
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One such insight gathered by the company was that rural women in some regions use the
same soap for cleaning clothes and for bathing. As the chemical used in detergent bars is
harsh, HLL developed a lightweight soap to double as a personal soap. In order to cut down
on costs, HLL has changed the traditional process of making soap from liquid to tablet to
bar to altering the machinery to cast soap immediately in the required shape, which is then
packaged in a plastic cover. For yet another low-end beauty soap, Breeze, the information
gathered from small towns and rural areas was that many women were using the soap both
,for their body and hair. The company experimented with the ingredients in their lab and
came out with the right formula called Breeze 2-in 1. Despite some scope for the
cannibalization of the company's other products, HLL feels that consumers were buying a
value added product.
In some areas, the company found that women were wary of using shampoo as they felt
it would be harsh on their hair. The company immediately came out with an advertising
campaign that showed a straw broom (what happens to hair when washed with soap)
alongside soft tresses (the benefit of shampoo). The company developed a sachet for Lux
shampoo that sold at 50 paise compared to the prevailing rate of Rs 2.00 per sachet. The
visual cues and the price, according to analysts, were so compelling that in the test state of
Andhra Pradesh, the volume sale of shampoo jumped by 50% in three months.
A combination of consumer insights, product development, and an effective
communication package has positioned HLL at the number one position in the shampoo
segment in rural India. Banking on their pioneering work in the Indian rural market, both
HLL and parent company Unilever are now exporting ideas and techniques to other parts
of the world. The company has successfully transplanted the shampoo sachet success story
to Indonesia where 63% of the population resides in rural areas. In the Philippines, which
has 7,000 islands, Unilever has taken on Procter & Gamble's 'Tide' by marketing 'Surf
detergent in sachets which are packed for retailers in jute bags and not in cardboard boxes.
This has made the packs much more flexible and less space consuming, making it easier to
transport them on bicycles. This has been very cost-effective and convenient for the
company.
HLL's philosophy can be summed up in Mr Keki Dadiseth, the ex-HLL chief's words:
'Everybody wants brands. And there are a lot more poor people in the world than rich
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people. To be a global business... You have to participate in all segments'
(www.fastcompany.com1999).
Questions
1. Draw up an alternative 'Lifebuoy Swasthya Chetna' contact programme using women as
the change agents instead of children and old people.
2. Assuming you are a rural communication expert suggest non-conventional media, apart
from the ones currently in use by HLL. While doing so, keep implementation
issues/hazards in mind.
3. What was Mr Keki Dadiseth's philosophy for globalization? Exemplify the application of
that philosophy at HLL using instances from their rural initiatives.
4. Compile a case study on HLL’s rural thrust for pepsodent.
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Case No.:03 Changing Media Environment in India:
-Implications for Advertisers and Media Planners
The media industry in India has witnessed significant changes over the last few years,
especially after 2001 when government regulations were relaxed to allow the entry of a
number of companies into the print, television, and radio media. This has led to a
fragmentation of traditional media options for advertisers and media planners. In addition,
the emergence of new media options has created new opportunities as well as challenges
for them.
Television, the most powerful among all the media, is changing at a rapid pace. From a
single, state-owned channel, Doordarshan, in the 1980's, the television industry had grown
to over 300 channels (including local cable channels) by 2004. Many companies have
launched specialist channels keeping in mind the changing tastes and preferences of Indian
television viewers. These channels cater to a niche target audience based on the area of
interest (lifestyle, fashion, travel, business) or age group (children's channels). Since 2000,
the television broadcasting industry has seen the launch of several news-based channels. In
2003, news channels like NDTV 24x7, NDTV India, Sahara Samay, and Headlines Today
were launched. This was in addition to the already existing news channels - Zee News, Star
News, and Aaj Tak. The state-owned Doordarshan also jumped onto the news channel
bandwagon, with its DD News channel. The year 2004 saw the launch of other niche
channels like Travel and Living, a travel channel from Discovery; History channel, an
affiliate of the National Geographic channel; ZOOID, an up-market lifestyle channel by the
Times
Group, and Star One from the Star Group stable. Besides, children who had had to be
content with Cartoon Network and the one-hour cartoon slots on other mainstream
channels, suddenly had a range of choices with the launch of seven new children's channels
including Pogo, Hungama from UTV, Animax, and the relaunch of Nickelodeon as Nick Jr.
Most of the channels for children have steadily localized the animation content. Walt
Disney went a step further and launched Toon Disney, an animation channel that was
beamed in four languages - English, Hindi, Telugu, and Tamil. Seeing the advantage of
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focusing on niche segments, Zee plans to even launch its women's channel. Atul Phadnis,
Vice-President, TAM India, which monitors almost all the channels being beamed into
India, said fragmentation would create problems for media planners. "Already there are a
zillion different ways in which media planning can be done. So while fragmentation is good
from the viewers' point of view, for the planners it will be a tough task."
Radio is another mass medium that has hogged the limelight since 2002. Once written off
by advertisers, it got a fresh lease offline when the government opened the industry up to
private broadcasters in 1999. This resulted in the entry of several media houses into radio
broadcasting. They include Radio Mirchi (Times Group), Go (Midday), and Star Network's
Radio City. Nearly 37 private stations had become operational, as early as in 2002. The
entry of private radio channels led to a substantial increase in radio advertising. Besides,
the reach potential of radio has increased tremendously with the increase in time spent
listening to the radio. In 2003, the ad-spend on radio was about Rs 1.8 bn, which was less
than 2 per cent of the overall advertising market. The revenues are expected to increase to
Rs 6.89 bn (at a CAGR1 of 30 per cent) by 2008. The print media too is expected to witness
a steady growth. According to a study by Price waterhouse Coopers - Global Entertainment
& Media Outlook 2004-2008, the Indian newspaper market is expected to grow from Rs
1.87 bn in 2004 to Rs 2.4 bn by 2008 (at a CAGR of 6.9 per cent).3 Exhibit 1 contains a list
of the prominent media for advertising and their revenues over a period of three years
(2002-2004). Consumer durable and FMCG companies were the major spenders through
the television medium. Shampoos, toilet soaps, and washing powders were the highest
advertising spenders in the FMCG industry.4 In the print media, the prominent advertisers
were educational institutions, retailers, coaching centers, real estate developers, and
tourism operators. Due to the increasing clutter in the traditional advertising media, lower
cost and more touch-points with the consumer, companies - especially FMCG, and media
planners began to look out for non-mass media or below-the line advertising options, to
communicate with the customers. Advertising agencies are also interested in providing
integrated communication services to their clients. This is evident from the emergence of
specialist media agencies such as BroadMind (the specialist arm of WPP MCI group) and
Integrated Marketing Action Group (IMAG of Lowe & Partners). lMAG consists of specialist
arms like Linterland (rural), Lintertainment (films & entertainment), Aaren Initiative
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(outdoor), LinOpinion (PR), Advent (events and merchandise), Lowe Personal (direct
marketing and customer relationship management) and DCell (design). BroadMind is a
specialist division that has various sub-divisions offering media planning and buying
solutions to specific media. They include Dialect (local area marketing), Health & Lifestyle
(sports), and Brands and Films (entertainment). FCB-Ulka also has divisions that include:
FCB-Ulka (Direct), FCB-Ulka (Healthcare), Lodestar (Media buying), FCB-Ulka (Interactive)
and Cygnus (PR). These agencies have begun to offer media planning solutions for
unconventional promotions, such as village fairs, in-film placements, seminars, and fashion
-.shows. The preference of media planners and companies for such media stems from the
fact that they offer huge potential. For instance, nearly 500 meals and fairs take place every
year and are attended by 150-200 million people. Besides, the market for film
merchandising and in-film advertising is expected to grow to Rs 500 mn by 2006. Speaking
on this issue, M. Suku (Suku), National Director, BroadMind, said, "In India, the landscape is
very diverse and rich - from a monkey performing on Chowpatty beach to Jack Welch
talking to CEOs, they are all marketing opportunities, and our vision is for every media plan
to have integral non-traditional media elements.,,6 Ashish Bhasin, Director, IMAG, adds,
"Four out of ten people in the country are untouched by any media ':'-which is the
population of France, Germany, and England put together. So 'melas' and 'haats' provide an
opportunity to physically touch the consumer."...
The potential for below-the-line promotions are immense. In 2002, Dialect of BroadBand,
promoted its clients' brands during the one month long 'Sonepur Mela' in Bihar, which
attracted 1.8 million visitors who spent an astounding Rs 225 ron. The division has now
included the 'Koregaon Bullock Cart Race' of Maharashtra and the 'Nehru Boat Race' of
Kerala in its portfolio, to promote the brands of clients. Similarly, the 'Health and Lifestyle'
division bagged the exclusive marketing rights for the Standard Chartered Mumbai
I,nternational Marathon, which is held in January every year. The 'Brands and Films'
division that takes care of product placements, marketing tie-ups, and acquisition of
Doordarshan and satellite channel rights for its clients, marketed Bagpiper in the film 'The
Hero' and Pidilite and Kellogg in 'Chotta Jaadugar' in 2003. According to Mr. Suku, "Brands
rarely go beyond two forms of media, but we have an opportunity to explode it across 360
degrees -- so I can put the bullock cart race on a local TV channel, in a local newspaper, and
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do ground events. The brand benefits not only by reaching more consumers, but there is
also a far greater brand-consumer interaction, and building of a local connect." Even non
FMCG and consumer durable marketers are seeking ways to explore every touch point that
they make with the customer, and promote their brands. For instance, Air Deccan
capitalized on this opportunity and offered the back of its boarding passes, food trays, and
the exteriors of its aircraft to advertisers. Air Deccan was able to attract big advertisers like
NDTV, VIP Industries, and Sun Microsystems through this service. Speaking on this issue,
John Kuruvilla, Revenue Officer, Air Deccan, says, "As an airline I get extra revenue which
helps me to offer concessional fares, and for the brands advertising on my airbus, they are
able to catch the undismpted attention of their target audience (T A) at a low cost."
With the availability of a multitude of advertising options and increasing fragmentation of
traditional media, media planners have tried to seek ways to gain maximum leverage. As
part of this effort, these organizations have tried to adopt different media planning
practices. In some organizations, unified structure is followed where the media planning
and media buying are under the supervision of the same professional. Agencies like
Lodestar believe in a unified structure. On the other hand, agencies like GroupM and Carat
Media believe that the unified structure is not appropriate. According to Charles Berley
Jenarius, Group CEO, Carat Media, "Both planning and buying are highly specialized areas
and require different skill sets to deliver the best. It is very rare to fmd all these skills
resident in the same person, hence the need to have specialists to perform the respective
functions."
Questions for Discussion:
1. "The scene may become complicated, but that's only to be expected with
fragmentation in the industry. But I am excited about the change, as it will open up new
possibilities." What are the implications of media fragmentation and the emergence of
new media options for advertisers?
2. Discuss the rationale behind some media planners adopting a unified structure for media
planning and media buying, when both are termed as specialized functions?
3. "With mass media costs being constantly on the rise, brands are increasingly looking at
non-traditional media to promote their brands." What advantages do non-traditional
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promotions offer to companies?
Case No.: 4 Consumer Behavior Horlicks:
- Effective Repositioning through Focused Advertising
The approximately Rs 13,000 mn, 80,000 tone-a-year market for health food drinks HFD
(also known as milk food 'drinks or MFD), began to stagnate in 2002. The segment is
broadly divided into the white and brown malts category. The white malts category
constitutes 60 per cent of the overall HFD market and Horlicks, along with Junior Horlicks,
is the market leader with a 57 per cent market share. The brown beverages -- consisting of
brands like Boost and Maltova (Glaxo Smith Kline Consumer Healthcare Ltd, GSK),
Bournvita (Cadbury), and Milo (Nestle) - form the remaining part of the HFD market. The
brown beverages were positioned and associated with taste, energy and fun, while the
white malted category was associated with nourishment and health. With no clear
functional distinction between the white and brown malts, consumption levels generally
depended on consumer preferences or the intensity of marketing efforts of the
manufacturers. To overcome this weakness and improve the sagging demand for the MFD
brands, manufacturers decided to reposition the malted drinks and re-Iaunch them as
strength and energy drinks, with an emphasis on the ingredients and nutritional values.
Bournvita was the first, in the 1980s, to be re-launched with added vitamins and glucose.
This attempt to differentiate the brand on the basis of ingredients was fruitless as it had
little influence on consumer perceptions. Companies in the MFD category again made
attempts to reposition their brands. For example, Horlicks repositioned itself from a
children's energy and growth drink, to a health supplement for the entire family. One of the
advertisements depicted how housewives could refresh themselves after a hard day's work
with a cup of Horlicks.
During this period of re-launches, GSK also tried using sachets, with the promise of
hygiene, to differentiate itself from the clutter and increase sales volumes. Horlicks was
first launched in a 25-gram sachet, which was then reduced to l8-gram. But, according to
Mr. R. Subbarayan, (Director Sales and Marketing, SmithKline Beecham Consumer
Healthcare), "The brand's positioning worked against it. Where the product requires
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regular usage, a sachet is unlikely to succeed. Horlicks is sold on a nourishment platform,
and that looks at long-term use."] Mr. Subbarayan said it was the occasional consumers
who generally preferred sachets, since it worked out cheaper than a 250-gram or 500-
gram bottle or refill pack.
Despite its best efforts, GSK's positioning efforts failed. In 2002, when the company saw its
sales decline by 9.4 per cent in the first nine months, it decided to identify ways to sustain
growth. Horlicks, which was still the market leader, had also declined in terms of absolute
sales growth. The brand had always been positioned and associated for good health and
nourishment. The advertisements focused on aspects like product quality, family bonding,
and reinforcement of essential nutrients, which helped it win over the trust of generations
of mothers. The company decided to initially focus on its Rs 8 bn brand and give it a new
look to sustain growth.
GSK conducted a consumer research study to identify ways to reposition Horlicks. The
study revealed that the use of Horlicks by medium and heavy users had declined; that
children had lost touch with the brand, and that the brand was not being perceived as
modern, but was considered a drink for elders and those recuperating from illnesses. The
study also revealed that modern mothers were reluctant to force their children to drink
Horlicks if they refused, since they wanted to be looked upon as friends and not as
authoritative parents. Sucheta Govil, (Govil) General Manager, Marketing, Nutritional
Healthcare, GSK Consumer Healthcare, pointed out, "Our consumer research exercise
pointed out that pester power played a major role in buying decisions. From a HFD product
like ours to white-goods such as a computer or a TV, the children play a major role at the
entry level of any product, Govil also added, "The mothers today are no longer epitomes of
patience who would do anything to get their children to have healthy and nutritious food.
Today's mothers prefer to give their children what they like instead of wasting time and
energy to force their children to have a health drink or a health food." The findings clearly
brought out the fact that the consumers wanted Horlicks to be a livelier and refreshing
drink in different flavors, instead of the down-to-earth health drink that it was.
Based on the findings, a complete brand re-Iaunch was initiated in July 2003. The re-Iaunch
involved improving the product, introducing new flavors, new packaging, and a new
communication campaign. GSK decided to target children directly for the very first time
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ever. Consumer studies again suggested that by focusing on the attribute of taste, Horlicks
could become the preferred choice among the children. Keeping this in view, GSK launched
three new variants - vanilla, honey, and chocolate, apart from the regular malt, which was
also improved to offer the best taste. The company's ad campaign was developed to revolve
around pleasure and entertainment and focus on the new flavors. The target audiences
were positive, self-confident, smart children in the age group 8-14. The new, improved
Horlicks was advertised through the 'Pran chonchol' campaign, which dramatically
changed the brand's positioning from a serious health drink to a lively fun-filled refreshing
drink. This campaign was later followed by the "Epang, opang, jhapang" campaign.
Since the brand was being targeted at children, the packaging was also made more
attractive and bold. According to Mr. Govil, packaging was given importance because "We
wanted to contemporarise Horlicks and make it more relevant. The brand had begun to
look dated and was losing its significance”. This aspect was supported by Sonia Pall,
Director, Client service, ACNeilsen ORG-MARG, who said, "The offer currently seems to
have two distinct parts - the product directed at the mother and the packaging trying to
pull in the child.” Bright blue and orange were used to improve shelf-appeal and gain
maximum visibility. The product packaging was designed by Tata Elxsi and the pack
designed by J. Walter Thomson (JWT).
Questions for Discussion:
1. How did an understanding of consumer behavior help GSK re-Iaunch Horlicks in
a completely new version, targeted exclusively at children?
"
2. GSK had earlier used sachets to increase sales volumes, but had little success. Do you
think the new packaging has played an important role in the success of the re-launch
campaign? Would sachets instead of bottles, be beneficial as a means to target children
more effectively?
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Case No. 5 Bass Attack.
Rusty Johnson has had a lifelong love for fishing of all types. He has been on the ocean,
numerous lakes and streams, and occasionally, he has made trips to small ponds in the area
just to catch small catfish. Having made a fairly significant amount of money in his real
estate career, Rusty is looking for a new challenge. He decided to manufacture and sell bass
fishing boats in the lake Ponchartrain area of Louisiana.
Fishing in southern Louisiana takes two forms. First, some anglers like going into the
swamps and bayous to get near underwater foliage, where some kind of bass crappie hide.
Others enjoy getting out on the larger lake, using radar equipment to identify bigger fish
resting in the deeper and cooler areas of water in the summertime.
The swamp fisherman requires a maneuverable boat with a small hull, so it does not get
hung or scratched in the shallow waters. The large lake fisherman wants more stability and
a larger boat to negotiate waves in the deeper open areas. Both wanted a boat that made it
easy to pull fish in, with a live well holding tank. Other accessories could then be added
depending on the tastes of the fishermen.
Rusty created two kinds of boats in response to the marketplace. He designed the first, the
Bass Attack Prowler, for smaller spaces. He named the larger boat the Bass Attack
Mastercraft, figuring that Bass Attack sounded quite a bit like Bass Tracker, the leader in
the field. He also believed that the name was unique enough for the seasoned fishermen
who would know the difference.
As the company completed the development of a manufacturing site and production of
the initial run of boats, it was time to advertise. Rusty knew the real estate advertising
market quite well, but he did not feel confident about reaching the fishermen. He faced the
problem of geographic dispersion. Beyond the locals in the area, bass fishermen were
spread out through the entire state of Louisiana and across the country. They came from a
wide variety of backgrounds - some wealthy, some quite poor. Rusty's goal was to get some
of the locals to consider his boat instead of the higher-priced, better known model offered
by Bass Tracker.
15
In the first year of operation, Rusty's company budgeted $200,000 for local advertising
and more for "want ads" in some large outlets such as Internet sites, fishing magazines,
and possibly, some travel magazines or newspapers. He also considered billboards and
other low-cost possibilities. He knew he had a quality product. Now the goal was to get the
word out and generate some sales.
1. Which media should Bass Attack use? Which media should the company eliminate and
why?
2. For each of the following media, identify four specific outlets that Bass Attack could use
for advertising. For instance, for magazines, a logical outlet would be Field and Stream; for
television, ESPN Fishing shows.
(a) Magazines
(b) Radio
( c) Television
(d)Internet
3. What kind of ad do you think will be successful for this company? Defend your answer.
16
Case No.: 06 'Goli ke Hamjoli' (Friends of the Pill): an Integrated Social Marketing
Campaign
Marketing communications campaigns are not just being used by corporate organizations
to promote commercial products, but are also being used extensively by governments,
health organizations, and non-governmental organizations (NGO's) as a means of 'social
communication' for various purposes. Health communication initiatives constitute a major
share' of such social communications. Health communications once used to be mere public
notices. Now they are changing into innovative multidimensional campaigns that are
classified as 'social marketing'. There are various examples of such social marketing
initiatives including the Pulse polio immunization campaign, HIV/AIDS awareness
campaigns, etc. Though 'social marketing' has been going on in India since the 1960's, it
has gained prominence from the late 1990's, beginning with the 'Goli ke Hamjoli' (Friends
of the Pill) integrated mass media campaign launched in 1998, in response to the low use
of oral contraceptives (OC) in the country. Till 1998, OC's were used by only 2.1 % of the
women in India as against 15-25% in other developed and developing countries. ICICI
Bank, under the USAID funded Program for Advancement of Commercial Technologies
(PACT), - Child Reproductive Health (CRH) project - decided to promote the use of low
dose oral contraceptive (OC) brands of the private sector in northern India with the help of
Commercial Market Strategies (CMS).
CMS wanted to achieve the following key objectives through this campaign: to bring about
awareness among the young urban women about oral contraceptives and its benefits; to
increase the availability of OC's in the market and to increase the use of OC's. Speaking
about the initiative, Dr Rita Leavel, Commercial Market Strategies' representative in India,
said, "Goli ke Hamjoli is a movement to involve doctors, chemists, opinion leaders, civil
groups, health organizations, the media, and others to help educate couples who are
interested in oral pills as their contraceptive choice. The program does not specifically
promote any brand but promotes the entire category of low dose oral contraceptive pills.")
Before developing the ad campaign, CMS conducted a focus group study among the target
17
segment -- women in the age group of 18-29 years. The study revealed that the low usage
of OC's among the women was due to their negative perception about the use of OC pills.
They felt that the use of OC's would have short-term side-affects such as nausea, weight
gain, and dizziness; and long-term side-affects such as infertility and permanent physical
defects. The integrated communication campaign sought to dispel the myths about the use
of OC's and project it as a companion and friend of the women. The ad campaign was
developed and first tested using the focus groups. Ogilvy & Mather was the ad agency.
The first 'Goli ke Hamjoli' campaign was launched in November 1998. CMS decided to
focus first on northern India, especially the four states of Bihar, Madhya Pradesh,
Rajasthan, and Uttar Pradesh, which contribute nearly 42% of the population growth rate
in the country. In 1999, celebrities were roped in and the testimonial advertising route was
adopted. Leading film and television artists such as Mandira Bedi, Pallavi Joshi, and Shefali
Chhaya endorsed the OC's and pointed out their benefits. The integrated marketing
communication campaign consisted of television and print ads, public relations, and
training. CMS also launched public relations initiatives to impress upon the medical
fraternity and opinion leaders in the country the benefits of OC's. It trained chemists and
traditional doctors regarding various issues related to the use of OC's. They were also
provided with booklets that contained detailed information about OC's. CMS also tried to
encourage the OC product manufacturers to market their brands under the umbrella logo
of 'Goli ke Hamjoli.' It made use of innovative ways to communicate the message to the
target segment. For instance, CMS identified that many beauty parlors attracted young
women - unmarried and newly married, in the northern states. They discussed various
aspects with the beauticians, including the issue of family planning. So CMS conducted
some workshops in some of the beauty parlors on a trial basis. In another instance, Mamta,
an NGO operating in the slums of Delhi, identified that the mother-in-law had a great
influence in family planning matters in the house. So workshops were conducted for them
in these areas. Other on-the-ground promotions included 'Hamjoli Baatcheets' or 'Friends
of the Pill Conversations', where female gynecologists answered technical queries and gave
suggestions to the brand ambassadors.
The campaign was successful in achieving the objectives. The use of OC's increased nearly
three times from 4% in February 1999 to 13% in September 2001.4 The campaign also
18
encouraged many new manufacturers to sign up with CMS, which
resulted in greater availability of good quality OC's in the market. 'Goli ke Hamjoli'
communications campaign received the 'Health Care Campaign of the Year' award in the
1999 Asian Public Relations Awards held in Hong Kong. The campaign also received 'Best
Social Concern Campaign' for the year 2000 from the Bombay Ad Club. Numerous articles
regarding the campaign appeared in various Indian newspapers and women's magazines.
Questions for Discussion:
1. Discuss the various communication elements used by CMS for its integrated
'Goli ke Hamjoli' campaign in India.
2. Social marketing campaigns are not similar to commercial marketing
communication campaigns in many ways. Briefly describe some of the distinct
elements in both these forms of communication.
19
Case No.: 07 Brand Management Strategy of Dabur Vatika
Until the early 1990s, Dabur, the lOO-year old ayurvedic products manufacturer, was
looked upon as a rather staid company that marketed herbal and ayurvedic products. But
the launch of Dabur Vatika in 1995 brought about a sea change in that perception. Within
six years of its launch, Vatika had become the market leader in the valueadded hair oils
segment. Its success pushed Dabur into the league of top FMCG product companies in India.
Dabur Vatika's success can be attributed to the company's differentiated product offering
and meticulous brand building initiatives. The company concentrated on differentiating the
brand in all aspects, right from positioning to packaging. At the time of its launch, Dabur
positioned Vatika as value-added hair oil that contained pure coconut oil enriched with
natural ingredients such as henna, amla (gooseberry), and lemon. Till then, the hair oil
market had been dominated by plain coconut oil brands with Marico's flagship brand,
Parachute, being the market leader. Vatika was promoted as hair oil that provided beautiful
hair through the extra nourishment given by the natural ingredients added to it. Apart from
positioning it on the 'natural' platform, Dabur also adopted a premium pricing strategy.
Vatika was priced 50% higher than other branded coconut hair oils. Dabur also used
innovative packaging to catch the attention of consumers. Its green and white bottle,
topped by a green mushroom-shaped cap, was quite different from the blue bottles sold by
the competing brands. These initiatives enabled the brand to register sales of Rs 100 mn in
the first year.
However, in 1997, Dabur decided to launch a new communication campaign as it felt that
the then Vatika campaign was not resulting in higher trials by consumers. The aim of the
new campaign was to create a perception in the minds of the consumer that other hair oil
(coconut oil) brands were unable to provide enough protection for hair from air pollution,
hard water, and use of chemicals. Dabur launched the 'Vatika Women' ad campaign to
convey this message. Leading film and television actors, Mandira Bedi, Shefali Chayya, and
Sudha Chandran, were roped in to endorse Vatika's efficacy in protecting the hair. As these
personalities had a edge over ordinary women in the perception of the target consumers,
20
the campaign served to reflect Vatika's emphasis on 'extra nourishment'.
Dabur launched another ad campaign in 2000. The company signed Priyanka Chopra (the
Miss Universe of that year) to promote Dabur Vatika hair oil with the message "Thank god I
switched to Vatika." In 2001, the company changed the primary selling proposition from
extra nourishment to problem-free hair. It launched an ad campaign with Simone Singh (a
well-known television actor) with the tagline 'Vatika ke saath hair problems hogi to milegi
na! ' (You will never have problems with your hair with Vatika, because there are no
problems.)
The success of Vatika hair oil encouraged Dabur to enter the shampoo market in 1997, and
it launched the Vatika Henna cream conditioning shampoo with a similar positioning
strategy. The product was promoted as a shampoo that provided "silky hair naturally." It
was packed in an attractive transparent bottle that clearly distinguished it from the
competition and gave it a premium look. In 2000, the company extended the brand to an
anti-dandruff shampoo, promoting it as a natural shampoo containing lemon and henna,
both of which effectively controlled dandruff. Irwas also the first natural anti-dandruff
shampoo in the country. The brand targeted competitor products such as HLL's All Clear
and P&G's Head and Shoulders, which were being promoted as products that contained
ZPT chemicals. Dabur featured leading models such as Aditi Govitrikar, Preeti Jhangiani,
Shweta Jaishankar, and Riya Sen in the Vatika shampoo ad campaigns to give a youthful
look to the brand. In 2004, the company roped in leading model Nauheed Cyrusi to endorse
the Vatika anti-dandruff shampoo, with the message 'Dandruff pe vaar, baalon se pyaar'
(fights dandruff, takes care of hair). The ad stressed that Vatika shampoo, unlike other
shampoo brands that had chemicals, did not harm the hair while removing dandruff
effectively.
Apart from well thought-out advertisement campaigns, the company also used other
marketing communication mix tools to enhance the brand equity of Vatika. It sponsored
various events such as Vatika Super Model India 2001, and the Vatika Zee Sangeet Awards.
Dabur also launched a micro site on its website Dabur.com, which gave product
information about the Vatika range. Besides, the site had a Vatika expert, who gave tips and
answered queries relating to hair care.
21
As a result of such meticulous brand building initiatives, Dabur Vatika has grown to
become a leading brand in the personal care segment. The Vatika brand is valued at Rs 1
bn, with a strong presence in the hair oil, conditioning shampoo, and antidandruff shampoo
segments. The success of the brand can be gauged by the fact that it has nearly 11.1 million
users (Source: IRS Household Data 2003). Dabur extended the brand to skin care products
with the launch of the Vatika fairness face pack in 2004.
Questions for Discussion:
1. Dabur Vatika, one of the youngest brands in the country (launched in 1995), has
become a leading brand in the natural personal care product segment. What were the
factors that enabled Vatika to become a flagship brand of Dabur in such a short span of
time?
2. Marketing communications play an important role in building brands. Discuss the role
played by marketing communications in making Dabur Vatika a successful brand.
22
Case No. 8 HLL's Media Strategy for Close-Up
The Indian toothpaste market is estimated at around Rs 14 bn with Hindustan Lever (HLL)
having a market share of32.8%. Close-Up (15.6%) and Pepsodent (17.2%) are the major
brands for the company (ACNielsen-ORG Marg 2003). Close-Up was launched in 1975 and
was the first gel toothpaste brand of HLL. Since the late 1990s the brand has witnessed a
decline in market share, mainly due to the stagnation in the toothpaste gel market since
1998. Increased competition from Colgate and low-end players like Anchor and Ajanta was
another reason for the brand's poor showing. Besides, the oral care category itself declined,
with toothpastes witnessing a 12.5 percent drop and toothpowders, an 8 percent fall
(ACNielsen Retail Audit 2003).
HLL made several attempts to give a boost to the sagging sales of Close-Up. In the early
2000s, the company launched many variants including Ultra Whitening, Oxy Fresh, and
Eucalyptus Blue along with the mother brand -- Tingly Red. In January 2004, the Tingly Red
toothpaste was promoted through an ad campaign with the jingle "Kya aap Close Up karte
hain?" However, this move did not yield the desired results. In June 2004, HLL decided to
restructure Close-Up's brand portfolio by dropping the variants and restricting it to the
mother brand -- Tingly Red -- and a single variant Lemon Mint. Speaking about the
rationale behind the move, Mr. Sanjiv Kakkar (Kakkar), Vice-President, Oral Care, HLL, said,
"We have decided to clean out the Close-Up variants and continue only with the Lemon
Mint variant. Our experience with Close-Up's variants has been flavor-based. These
variants have not been sustainable with disproportionate shares compared to the huge
media inputs required to support them. Our experience shows that most of the variants
tend to reach a less than 2 per cent share and then they begin to dip.'" HLL re-launched the
paste with a vitamin fluoride system that offered a three-in-one benefit. A new ad campaign
was developed that showed an animated toothpaste pack explaining the benefits of Close-
Up to a young woman with the jingle "Kya aap 'naya' Close Up Karte Hain?" Commenting on
the new ad campaign, Pushpinder Singh, Senior Creative Director, O&M (agency which
23
created the ad), said, "Unlike the previous commercial, with the addition of the vitamin
i]uoride system. there bas been greater weigbt given to stronger, whiter teeth instead of the
usual freshness which the brand has been associated with."z With the addition of the
vitamin fluoride system, Close-Up slowly started to shift from the freshness plank to that of
oral healthcare. But this new positioning conflicted with the positioning of another popular
oral care brand Pepsodent. Speaking on this issue, Kakkar said that Close-Up was targeted
at the youth with a new beuefit positioning while Pepsodent was promoted on the family
health platform.
To stop further fall in sales and bring about a turnaround, HLL designed an innovative
media strategy. Apart from the conventional television ad campaign, the company used
the Internet, radio, program sponsorships, and brand placements to create a buzz around
the brand. Speaking about the media strategy for the Close-Up ad campaign, Mindshare
Fulcrum (which manages HLL's media planning activities) Business group
head, Atit Mehta, said, "There was no thematic communication for the Close-Up' brand in
2003. Then in January this year, we came out with the new ad for Close-Up. Now we have
re-launched the brand and the entire packaging has changed. The communication we
wanted to send out is that if Close-Up can change... anything in the world can change.,,3 HLL
tied up with leading Internet portals Yahoo! India, Sify, and Indiatimes to launch an
innovative online advertising campaign where the entire site was branded for a day. When
visitors clicked on the site, the entire page was splashed with red color for a few seconds.
The company also placed HTML banners on these three sites. HLL used the radio medium
too to communicate the message to customers. It launched radio ad campaigns on popular
FM channels including Amar FM (Kolkata), Radio City, Go 92.5 FM, and Radio Mirchi. Go
92.5 incorporated a modified version of the Close-Up jingle to promote its 'Good Morning
Mumbai' show - 'Kya aap Go sunte hain?' HLL also co-sponsored AXN's popular spy and
espionage drama series 'Alias', in which the central character, double agent Sydney Bristow
(played by Hollywood actress Jennifer Gamer) changes her identity from time to time.
Justifying the association of Close-Up with the serial, AXN's assistant VP marketing and
sales, Rohit Bhandari, said, "The basic essence of branding Close-Up with Alias was to bring
out the element of change that Close-Up has gone through and also to match the change of
identities that Garner goes through in Alias.,,4 HLL also went in for brand placement of
24
Close-Up in a Tamil movie 'Madurae' for the first time.
Despite the change in positioning after the re-Iaunch, HLL continued to persist with Close-
Up as toothpaste targeted at the youth segment.
Questions for Discussion:
1. HLL has used not just the television medium to re-Iaunch Close-Up, but various other
media vehicles like the Internet and radio. Critically analyze the rationale behind HLL's
motive in selecting such different media.
2. The stage of the brand in the product life cycle influences the marketing communication
strategy adopted by a company. In what stage of the product life cycle (PLC) do you think
Close-Up is? Is the present communication strategy adopted by HLL for Close-Up in tune
with the brand's stage in the PLC?
25
Case No.: 09 Lifebuoy: Successful Repositioning & Re-Launch of an Established
Personal Care Brand
Lifebuoy was sold in India as early as 1895, but was officially launched and marketed
from 1935. It was the largest selling soap brand in the world with sales of Rs 5 bn and
sold approximately 2 million soaps a day (as on 2002). Lifebuoy had a 21 % market
share in the overall soap marker and was a category leader in the carbolic soap. segment
with a 95% market share. For over hundred years since the brand fIrst came to India,
Lifebuoy was associated with health and well-being. Its ads reiterated the message that
Lifebuoy washed away germs and kept one protected and healthy.
The brand went through a major re-launch for the fIrst time in 1964, with a change in
product formulation, shape, and packaging. The new soap was cresylic-perfumed and in
the shape of a red brick bar. The re-launch was supported by ad campaigns with the now
popular jingle 'Tandurusti ki raksha karta hai Lifebuoy... Lifebuoy hai jahaan tandurusti
hai wahaan' (lifebuoy products one's health... where there is lifebuoy there is health). All
the ad campaigns had sports as the backdrop followed by the model enjoying a thorough
cleaning experience, bathing with Lifebuoy soap. The ads thus sought to link the brand
with health and hygiene. The ad campaigns were created with an eye on achieving mass
appeal since the major markets for the brand were in the towns and rural areas (70% of
sales of Lifebuoy soap comes from rural areas and towns). With the help of its successful
ad campaigns, HLL became the market leader in the bath soap segment.
Till the early 1990's, the bath soap market was categorized into three segments --
Premium, priced above Rs 11; Popular, priced between Rs 7 and Rs 11, and Carbolic
soaps, which were priced below Rs 6. Lifebuoy was part of the carbolic soaps segment.
However, brand sales and market shares began to dip in the late 1990's, due to various
changes in the soaps segment. The 40-50% fall in prices of vegetable oils in the mid-
1990's led to many companies launching new soap brands at lower price points. This
resulted in the emergence of a new soap category called the 'discount segment'. These
26
soaps were priced 10% to 15% lower than the popular soaps. Prominent among them
were Godrej No.1 and Breeze (another HLL brand). The 'discount segment' brands
started eating into the market shares of the 'popular' and 'carbolic' segment brands. This
was evident from the fact that in 2001, when the premium and popular segments posted
growth rates of 3% and 1 % respectively (in volume terms) over the previous year, the
'discount segment' grew by 15%. At the same time, the carbolic soaps segment,
dominated by Lifebuoy, registered a negative growth rate of 5%. This was because
consumers began to prefer 'discount soap' brands due to their affordability, softer
texture, and good fragrance to the hard and rugged carbolic soap brands.
The increase in the media penetration in rural areas was another major factor that led to
the fall in the sales of Lifebuoy. With increased penetration of media, consumers in these
areas became aware of the wide range of soaps available in the market, and realized that
they had a greater choice. This led to a change in brand preferences. The increasing
involvement of women in purchase decisions of household goods was also responsible
for the fall in the sales of carbolic soap brands (mainly Lifebuoy). Earlier," it had been the
head of the family who took decisions regarding the purchase of household goods.
Lifebuoy with its masculine image and affordability was their preferred choice. But with
women getting more involved in household purchases there was a change in preference
toward newer, softer, and more fragrant soaps. As a result of these changes, Lifebuoy's
market share fell from 15.4% in 1997 to 12.5% in 2001.3 The decline in the overall soap
market by 10 % further reduced the sales of the brand.
To revive its sagging sales and keeping in mind the change in customer preferences, HLL
decided to reposition and re-launch the brand in 2002, moving away from personal
hygiene platform to the family health platform. It decided to bring about changes in the
formulation, size, shape, quantity, and packaging of the brand. Lifebuoy was transformed
from a red brick bar shaped soap in a 150 gram pack to milled toilet soap in a 125 gram
one. The product formulation was changed from a hard carbolic soap to a softer total
fatty matter (TFM) soap with a refreshing fragrance. The rugged look of the packaging
was also changed and it became a softer looking family pack. In addition, four new
variants were introduced - Lifebuoy Strong, Lifebuoy Fresh, Lifebuoy Gold, and Lifebuoy
Naturals. HLL changed its marketing communication strategy for the brand too.
27
Commenting on the changed marketing communication strategy, Mr. Dube said, "The re-
launched brand is a shift from being a masculine soap to a family soap which is
elucidated in the new packaging. Moreover, the positioning of health will now be
aggressively communicated to women in the Indian household."
The company used various marketing communication tools to convey the changed
positioning of the brand. It launched a series of four television commercials to inform the
consumers about the new Lifebuoy. One of the commercials was set in a small sleepy town
where nothing ever changed. The whole town comes to life with the arrival of the new
Lifebuoy soap with the tagline "Lifebuoy badal gaya hai." The commercial ended with the
ever popular, "Lifebuoy hai jahaan, tandurusti hai wahaan." The other commercials also
had the backdrop of small towns, emphasized the health benefits of using Lifebuoy, and
were targeted at mothers.
Besides running an ad campaign through television commercials, HLL chose to go in for
direct marketing campaigns through initiatives such as 'Lifebuoy Swastha Chetana' and
'Healthy Hindustan'. 'Lifebuoy. Swastha Chetana' was aimed at educating the consumers
about health and hygiene. Under this program, HLL organized 450 teams of health officers
and covered 8,000 villages, spread across II states. The health officers conducted 'Glo-germ'
demos among the rural masses. The demo used ultraviolet light to show up the otherwise
invisible germs on one's hands, and raise the awareness among rural consumers about
these germs and their impact on health. The concept of 'Swastha Chetana' was extended to
the urban areas as project 'Healthy Hindustan'. HLL, in partnership with McDonalds,
conducted the Glo-germ demo at McDonald's outlets in Mumbai, Pune, Ahmedabad, and
Vadodara. The objective was to make children aware about the invisible germs and their
harmful effects on health. The children who participated in the program were also
provided with booklets containing information on health and hygiene.
These initiatives helped the company revive the fortunes of Lifebuoy, and bring the brand
back on the growth path. After the re-Iaunch in 2002, sales volumes increased by 30%. In
addition, the market share of Lifebuoy grew from 12.5% in 2001 to 21% in 2003. The
changes in Lifebuoy's positioning enabled HLL to focus on promoting the brand in urban
areas as well."
28
Questions for Discussion:
1.Lifebuoy's marketing strategy, which had remained unchanged for over 107 years,
underwent a major shift with the re-Iaunch in 2002. Elaborate on the marketing
communication planning process behind the re-Iaunch of Lifebuoy.
2. The evaluation and control of marketing communication programs is the fmal step in the
marketing communication planning process. If you were the marketing director of HLL,
how would you evaluate and control the marketing communication program for the re-
Iaunch of Lifebuoy?
29
Case No. 10 Lalitaji
First launched in 1959 by Hindustan Lever Umited (HLL), Surf quickly became
synonymous with detergent powders and remained at the top as the largest-selling
detergent powder in the country until Nirma came. The late 1970s found HLL reeling
under the stiff onslaught of Karsanbhai Patel's low-priced Nirma. To respond to Nirma,
Untas' legendary Alyque Padamsee came with the memorable advertising campaign for
Surf, featuring a middle-class housewife Play Kavita Chaudhary. Overnight, people on the
street could identify Lalitaji, the pra sensible, challenging, no-nonsense housewife who
lectures us on the difference between 'sasti cheez aur asli cheez' (cheap thing and the real
thing). She was everybody's mother, wife, daughter-in-law or neighbour. More
importantly, the Indian middle-class housewife, HLL's main customer segment, wanted to
actually be the strong-willed, level-headed character that Lalitaji portrayed.
Soon, in an ironic twist, the character that became a celebrity because of brand
advertising became larger than the brand itself. By the late 1980s, Nirma had got itself a
similar Deepikaji who bettered a wily grocer and stressed if the same quality could be had
for a lesser price, "KoiIe, Woh na le?" (why would one buy this, not that?)
The detergent wars were just beginning with Proctor and Gamble opening a new
front with Ariel in the premium segment. All of a sudden, the rules of the game changed.
There was an entirely new segment with customers who were ready to pay the price for
better quality."In a sense, the character created for Surf, Lalitaji also explored the serial
idea. Every one loves characters and continuing story lines", says Alyque Padamsee.
HLL launched Surf Ultra with Laitaji's household, an urban nuclear family where
she was put in the modern role of a quintessential housewife who was looked upon by
everyone around her as a guardian angel, a problem solver who smartly reassured them
UDaag! Dhoondhte Rehjaoge!" (Stains! Keep searching for them!)
Unfortunately, with the social structure of India changing, the middle class
housewife was no longer the same Lalitaji and Surf Ultra flopped with Proctor and Gamble
30
capturing a major part of the market share. 'Lalitaji type' had become a euphvemism for
the irritating, aggressive know-it-all shopper with many could still identify, but probably
not as favourably as they -1990s,
In the mid-1990s, HLL was back with Surf Excel. More importantly, instead of
Lalitaji, the protagonist was now a working woman-a lawyer, a journalist, a
businesswoman-facing the" challenges of everyday life. What was retained was her
spotless white garb. When it suffered those inevitable stains, she was calmly reassured by
those who looked at her shopping bag Surf Excel hai na! (Surf Excel is there!) Lalitaji was
gone but the brand clicked with the segment yet again!
Yet another Surf Excel campaign reflected the changing role of the Indian woman. It
showed a yuppie couple entertaining a group of friends when the husband stains his sleeve.
Not wanting to disturb his significant other, he reads the instructions on the detergent pack
and takes care of the stain himself. She walks in and says knowingly, “Daag gaya Na!"
(Stains did go!)
So, are the days of Lalitaji finally over?
"We are migrating Surf to Surf Excel, as Surf has become generic and many people today
refer to any detergent as Surf. Besides, we feel that this brand has the chance of attracting
new users under the Excel name," says Sanjay Dube, Head, Market and Consumer
Development, Hindustan Lever Limited.
The jury's still out, but HLL must hope that all those consumers who swear by Lalitaji
will soon be chanting, "Surf Excel hai na!"
Critically discuss the situation
31