There's life in the old boy, still

THE NINTH BRAND DERBY-II/ How a 100-year-old brand was made to learn new tricks

Operating on a 100-year-old is fraught with danger "" especially if the centenarian is one of the most coveted FMCG brands.

That's why when Hindustan Lever Limited (HLL) relaunched its carbolic soap Lifebuoy, it took its time. HLL's been rewarded for its patience. The Brand Derby rated Lifebuoy the third most successful brand relaunch, with 33 per cent considering it "very successful".

For decades, Lifebuoy's been the ubiquitous red, brick-shaped hunk of soap present at kirana stores across the country. Why change it? The reason: dropping sales. "Lifebuoy was losing one million homes a month in 2001," admits Gopal Vittal, vice president, personal wash, HLL.

That decline was due to the growth of a new segment in toilet soaps "" the discounted soaps "" which is directly linked to the dramatic slide in vegetable oil prices in the mid- and late-1990s.

As the market filled with soaps that were 10 to 15 per cent cheaper than the popular (economy) segment, consumers began scaling up from carbolic soaps such as Lifebuoy and Nirma Bath.

Positioned between the popular and carbolic categories with brands like HLL's own Breeze, Godrej No. 1 and others, the discount segment provided some froth to a market that had otherwise declined 10.8 per cent in volumes.

Carbolic soaps bore the brunt. Cheaper soaps grew at 15 per cent while carbolic soaps declined by 5 per cent in volumes. The main reason for the growth of cheaper soaps, according to Vittal, was that consumers were increasingly becoming indifferent to older brands and were shifting preferences to newer, fragrant and softer soaps.

Lifebuoy had to be brought into the 21st century. But HLL decided to make haste slowly. Armed with the basic consumer insights, HLL undertook a research exercise that spanned 14 months and tested new product formulations, perfume and packaging options among 6,000 urban and rural consumers.

After aggregating the insights from core and new growth customers (which were to come from discount soaps), Lifebuoy was relaunched. First, the product itself underwent a huge change. The total fatty matter in the soap was increased from 41 per cent to 72 per cent, the red brick was shrunk from 150 gm to 125 gm and it was given a new fragrance.

Accordingly, the proposition had to change too. For decades, the communication as well as the pack graphics positioned Lifebuoy as the healthy choice of strong men.

Apart from being vague (soap and health?), the proposition was out of vogue when consumers were increasingly looking for newer choices.

"We decided to sharpen the meaning of health to hygiene, with the new offering," says Vittal. So the communication talked about Lifebuoy being a germ-killer; now the proposition hinged on "hygiene" not health.

Similarly, the machismo was traded for family appeal "" the pack as well communication now showed families and talked about the importance of hygiene for well-being.

Apparently, the relaunch has worked for the brand. Lifebuoy now has a 18 per cent share of the Rs 4,000-crore bath soaps market, compared to a 12 per cent share in 1999, while the market itself has registered negligible growth since then, according to ORG-MARG data. A fresh lease of life, in the true sense.