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ITC has entered a rapid growth phase with foray into the non-cigarette FMCG business
segment where it has set a target of achieving Rs 1 lakh crore turnover by 2030. In this
direction, Savlon is a huge opportunity for success due to the large scope in the
handwash market where penetration levels are still a fair way behind penetration of soap
in the Indian market. In this direction, competitors such as RBs Dettol and HULs
Lifebuoy have made a lot of investment in building brand campaigns to build the
consumers preference towards handwash products.
Savlon as a handwash product has not been established in the market with its share of
the pie less than 2%. To increase the sales of the Savlon handwash products, we have
taken two approaches: Brand building which will increase the entire market or capturing
the existing users from the competitors.
We suggest a two-pronged approach with different approaches earmarked for rural and
urban markets. Brand building should start with ad campaigns through Television and
Digital media in the urban market which showcases the point of difference of Savlon
handwash .This should be complemented with offline and digital media campaigns at
school, mass festivals like Kumbh mela, Rathyatra, Kumbakonam etc in the rural market.
To work on the second approach of capturing market space, Savlon should look to
capture shelf space. It should go for bundling the handwash with Savlon Soap or
Antiseptic, introducing variants across different fragrance or by changing the packaging.
All of these could be achieved by leveraging the extensive distribution network of ITC
which serves to 4.3 million outlets of 8 million retail outlets in India. These steps would
help Savlon build brand equity and increase sales by building both the brand and its
market share. Handwash market being a largely commoditized market, consumers take
the quality, fragrance and brand perception as a major factor driving the buying behavior
of the customers not the price as a factor of differentiation among the various other
handwash brands.
Savlon
handwas
h brand
building
Revampi
ng the
marketin
g mix
5X
growt
h
Product
Positioning
Price
Place
Dettol
8 Variants
Refill
packs
(185 ml to
900 ml), No
Touch Variant
78/pump,
140
for pH balanced,
38 for refill (185
ml)
Traditional
Distribution
Channel (wide and deep
reach), Direct marketing
(online)
Lifebuoy
6 variants
Refill
packs
(185 ml to
900 ml)
Germ protection in
just 10 seconds
(ease with 99.9%
germ free hands)
3 variants
Leveraging
the
brand equity of
Savlon
ASL
(Trusted by 90%
doctors, 8 times
better protection),
protection against
1 million germs
64/pump, 75 for
color changing
variant,
37-65
for 185 ml pack
(depending on
the variant)
74/pump, 42 for
185 ml pack
Savlon
SelfAd
WoM
Around 30% of them have used savlon at-least once and most of them have heard about
it. Only 20% have not heard about it before. People who have used Savlon liked its Germ
protection characteristics more than any other property. People who have used savlon
found it to be moderately to readily available in the retail stores.From the non-users of
handwash, it has been found that they use soap as an alternative mainly because of the
availability, lack of awareness and price effectiveness.
Interpretation and key consumer insights: After conducting a survey we came to
some meaningful consumer insights that can provide platform for its marketing, R&D and
product development teams to develop superior, differentiated products that meet the
consumer's stated and innate needs.
From the survey we could understand that Savlon
as a handwash has not been established in the
minds of the consumers. As it is a handwash people
want a high quality product and so it is highly
imperative for us to position our product having
high quality and germ protection
characteristics. Also as people would like to base
their purchase decisions based on the fragrance
and brand name. We should try to provide
different fragrance and build our brand equity by
creating awareness about the brand.
As most of the purchases of Handwash is driven by
self-decision we need to make the consumer realize
the importance of using a handwash to drive
category growth. Even a well-educated urban
consumer base have not heard about the brand so
we have to do a series of marketing campaigns to
build brand awareness.
Among the non-users we observed that the main
reason behind which they were not handwash was
Consumers felt that the fragrance of
savlon handwash was too strong so
they cant use it before eating food
Awareness among the customer about
the Savlon Liquid handwash is very
less
Savlon handwash is perceived among
the users as a handwash used when
someone is prone to water borne
diseases such as diarrhea.
Availability of handwash is good in
urban areas but the shelf space for
handwash is very less.
Marketing Strategies: Basically we feel and recommend that Savlon should revamp its
entire marketing mix so that it stands out in handwash market with respect to its
competitors.
Product:
1. Innovation and product variant: ITC should launch bodywash, shaving creams,
medicated plasters and kitchen gels, besides antiseptic liquid and soap, under the
Savlon brand.Handwash being a commodity product it becomes essential for
Savlon to come up with various variants so as to increase its shelf presence.
2. Packaging: From the consumer interview, we realized that the packaging doesnt
appeal to the customers and Savlons current idea of the ergonomics brand
recall from ASL is not working. We can use transparent packaging and
orange color liquid to use the color recall of the brand. This would cater also
consumers need of knowing how much liquid is left. Savlon should also leverage
the same labelling used for ASL in Handwash category like Lifebouy/Dettol to
improve brand recall and brand equity.
3. Fragrances: We have also found that fragrance increases stickiness to the
product and an important parameter in selection of a Handwash. Moreover the
current feedback of savlons fragrance is that it is very strong and related to poor
health. We could change the fragrance to include fruity smells, rose petals, Deo
smells, etc.
4. Variant: We could also introduce a variant as Anti-Bacterial handwash due to level
of Tryclosan as consumers are concerned with germ protection characteristics.
5. SKUs: Coming up with smaller SKUs and bundling it with existing savlon products
would help in building brand presence step by step
Promotion:
ATL: For the semi-urban and urban SEC-A consumers, we believe that Diarrhea, common
cold and food poisoning is a major threat to the childrens health. Savlon can target the
mothers with the following campaign
Advertisement story/plot: Affective component of persuasion
1. Your child is not going to school properly
2. Your child is weak in studies
3. Your child gets constant cold
Cognitive component of persuasion: Once the scenario is build-up through the
advertisement, a doctor reasons out that this could be because you dont use a Handwash and the ad ends with Savlon - Ab mere haatho mein mere bacho ki suraksha. The
advertisement ends with remark that savlon will remove 100% germs.This Ad could be
promoted through both TV and Digital channels like YouTube and Facebook to reach the
target audience.
Consumer Offers: We propose ITC to come up with either of the following customer
offerings in order to create handwash brand awareness
With urban and SEC-A being the target segment we could leverage the internet presence
to increase consumer engagement through social media platforms such as
facebook,twitter,etc
Place:
Retail stores- Gondola Marketing:
ITC can leverage its extensive distribution
network of 4.3 million retail outlets with gondola
marketing strategy wherein the entire shelf or
gondola of the retail store would be occupied by
ITC personal care products.This approach would
try to mitigate the problem of shelf space as it
would make the savlon handwash presence to
least 500-600 thousand households to adopt Handwash and at 2-5% market share
Savlon can achieve more than 5X sales growth.
Conclusion: Finally we can conclude that savlon handwash has to reposition itself entirely from
ground, leveraging the brand equity of ASL. Savlon should focus on existing users through
innovative packaging and product formulations, different SKUs and variants while for non-users
it should come with promotional offers, campaigns and exclusive retail outlet formats such as
gondola marketing.
Guesstimate_sales
ITC potential
Urban.xlsx