Realities of Emerging Markets: Some Lessons from Unilever's Strategy for Lifebuoy & Sunsilk in India
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Abstract:
With the growth in the developed markets approaching
saturation, consumer packaged goods (CPG) companies began looking toward
developing and emerging markets for future growth. Global CPG major Unilever
Plc.
(Unilever) was one of the companies that had a presence in several emerging
markets including India, where it operated through its subsidiary Hindustan
Unilever Ltd (HUL). The case focuses on HUL's strategy for growing two mature
brands with mass appeal - Lifebuoy (bath soap) and Sunsilk (shampoo), by
targeting new segments in innovative ways.
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In 2002, the company started a marketing
program, Lifebuoy 'Swasthya Chetna'('Health Awakening'),
targeting the bottom of the pyramid (BoP) segment in India. With
this initiative, HUL sought to promote handwashing with soap in
rural and urban areas in India. In doing so, Unilever not only
helped prevent diseases like diarrhea by promoting health and
hygiene awareness amongst the poor, who were infrequent users or
non users of soap, but also succeeded in increasing its sales of
Lifebuoy. In the process, HUL earned a lot of goodwill from
consumers as well as the Government of India. In 2006, it
launched a pioneering brand portal for Sunsilk, the Sunsilk Gang
of Girls (GoG), targeting the increasing number of
Internet-savvy girls. GoG was the first all-girl community in
India and quickly caught the imagination of the target group.
With India being viewed as a test market for emerging markets
strategies, analysts felt that the learning from these
initiatives would help Unilever develop a strong presence in
other emerging markets as well.
The case tries to dispel the myth that emerging markets are only
about devising strategies to target the huge BoP segment. It
goes on to discuss the issues and constraints in targeting the
youth in the rapidly changing scenario in India. Analysts are of
the opinion that HUL's success in India was due to its ability
to cater to all segments by adapting products, prices, and
promotion to each of them.
Issues:
» Understand the issues and challenges faced by global companies operating in
emerging markets.
» Understand the critical factors for succeeding in emerging markets by looking
beyond the stereotypical image of these markets.
» Understand the issues and constraints in targeting the huge Bottom of the
Pyramid (BoP) segment.
» Understand the issues and constraints in targeting the youth population in the
rapidly changing scenario in India
» Understand the reasons for Unilever's success in India and discuss whether the
company can leverage on this learning in other emerging markets
Contents:
Keywords:
Strategy, Emerging markets, Globalization, Base of Pyramid,
BoP, Marketing leader strategy, Segmentation, Targeting, Sunsilk, Lifebuoy,
Unilever, India
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