Lifebuoy in India
Marketing Planning - Fall Semester 2012/2013 Individual Case Answers
LIFEBUOY IN INDIA: PRODUCT LIFE CYCLE STRATEGIES
1. How is the concept of PLC useful? The Product Life Cycle concept is useful in the sense that it is a way to managers think about the product and the market development, functioning as a tool for effective marketing strategy in understanding the behaviour of product on sales, profits, 4P’s of marketing and consumer approval. The concept of PLC forces managers to plan better their total resource allocations in order to make them in the most efficient way given the stage of the product in its life cycle. It has practical relevance for the marketing manager in formulating product, pricing, distribution and promotional strategies. The concept is also valuable for product portfolio analysis and to set strategic objectives. Moreover, managers are also able to better predict the future and anticipate when they should drop prices, introduce new product modifications or reformulate promotional approaches. Finally, having this concept in mind and taking it into consideration encourages managers to develop a proactive attitude rather than a reactive attitude to the actions of its competitors.
2. How Lifebuoy’s strategies did in the early stages of its PLC enabled the brand to become a leader? Lifebuoy was launched in India, in 1895 by Unilever (Lever). The product entered in the country as an effective disinfectant, in a period where the country was under severe grip of plague. Its positioning in the market was clear with a promise that it kills germs and keeps the body healthy. This strategy of alignment between the product’s benefits and the needs of Indian consumers at the moment was the first main point that enabled the brand to get a positive image among the consumers. With the increase in demand in the mid-1930s, Lever started to establish others subsidiaries and in 1956, the three firms formed in India, merged to form Hindustan Lever Limited
LIFEBUOY IN INDIA: PRODUCT LIFE CYCLE STRATEGIES
1. How is the concept of PLC useful? The Product Life Cycle concept is useful in the sense that it is a way to managers think about the product and the market development, functioning as a tool for effective marketing strategy in understanding the behaviour of product on sales, profits, 4P’s of marketing and consumer approval. The concept of PLC forces managers to plan better their total resource allocations in order to make them in the most efficient way given the stage of the product in its life cycle. It has practical relevance for the marketing manager in formulating product, pricing, distribution and promotional strategies. The concept is also valuable for product portfolio analysis and to set strategic objectives. Moreover, managers are also able to better predict the future and anticipate when they should drop prices, introduce new product modifications or reformulate promotional approaches. Finally, having this concept in mind and taking it into consideration encourages managers to develop a proactive attitude rather than a reactive attitude to the actions of its competitors.
2. How Lifebuoy’s strategies did in the early stages of its PLC enabled the brand to become a leader? Lifebuoy was launched in India, in 1895 by Unilever (Lever). The product entered in the country as an effective disinfectant, in a period where the country was under severe grip of plague. Its positioning in the market was clear with a promise that it kills germs and keeps the body healthy. This strategy of alignment between the product’s benefits and the needs of Indian consumers at the moment was the first main point that enabled the brand to get a positive image among the consumers. With the increase in demand in the mid-1930s, Lever started to establish others subsidiaries and in 1956, the three firms formed in India, merged to form Hindustan Lever Limited