Lifebuoy Hand Wash
Lifebuoy Hand Wash
FACULTY OF MARKETING
GROUP PROJECT
PRINCIPLES OF MARKETING
Da Nang, 2024
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TABLE OF CONTENTS
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3. Distribution channel management:........................................................ 25
IV. PROMOTION ......................................................................................... 26
1. Advertising ............................................................................................ 26
2. Sales promotion ..................................................................................... 26
3. Public relation ....................................................................................... 27
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COMPANY AND PRODUCT OVERVIEW
I. COMPANY
1. History of establishment and development of the enterprise
1.1. Unilever
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company focused on building strong products and brands in Vietnam such as OMO,
Lifebuoy, Dove, Lipton and Knorr.
2.2.2. Development period (2000 - 2010):
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4. Organizational structure
Although they differ in legal status and transaction code, the two operate
under a joint board of directors through a benefit agreement.
Transaction Office Address :156 Nguyen Luong Bang Street ,Phuong Tan
Phu Street ,District 7 Ho Chi Minh City
Phone : 08.54135686
Fax : 08-54135631
II. PRODUCT
1. Unilever's business: Unilever operates in a wide range of business areas
with key product groups:
- Food lines for processing and eating: Becel, Flora, Bertoli, Knorr,
Lipton.
- Hygiene and personal care product lines: Lifebuoy, Dove, Lux,
Pond's, Rexona.
- Laundry product line for clothes and household items: OMO,
Sunlight, Cif, Vim.
3. Staples in Vietnam: In Vietnam, Unilever offers familiar and
recognizable products:
Dry hand sanitizer, liquid hand soap and cake, many capacities and scents
to suit the diverse needs of consumers.
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MARKETING ENVIRONMENT ANALYSIS AND SWOT ANALYSIS
I. MARKETING ENVIRONMENT ANALYSIS
1. Micro Environment
1.1. Customers:
• B2B:
- Healthcare facilities: Hospitals, clinics, and healthcare centers require
hygiene products such as hand sanitizers, antibacterial soaps, and
disinfectants.
- Schools and educational institutions: Providing products to protect
children and educational staff, especially as part of campaigns to raise
hygiene awareness.
- Businesses and offices: Meeting workplace hygiene needs to safeguard
the health of employees and customers.
- Hospitality industry: Hotels, restaurants, and catering services require
high hygiene standards to serve their guests.
- Distributors and wholesalers: Partnering with supermarkets,
convenience stores, and large distributors to expand the distribution
network.
• B2C:
- Families and Housewives: Promoting hygiene products for household
use to protect the health of family members, particularly children.
- Children: Focused on campaigns like "Help Children Reach 5,"
highlighting the importance of hygiene in reducing infections among
kids, who are the most susceptible to infection.
- Health-Conscious Consumers: Catering to people prioritizing personal
and family hygiene to prevent illnesses.
• B2G:
- Education Organizations and Government: Lifebuoy collaborates with
governments and ministries of education to implement hand hygiene
education campaigns for students in schools. For example, Lifebuoy has
partnered with the Indian Government in the 'Help a Child Reach 5'
campaign.
- Social Organization: Lifebuoy brand from Unilever Vietnam and the
Vietnam Pediatric Association (VNPA) have officially established a
long-term partnership 'For a Healthier Vietnam'.
- Ministry of Health: Unilever and the Ministry of Health have partnered
on the strategic program "For a Healthier and Sustainable Vietnam."
This collaboration aims to raise awareness, enhance sanitation and
health conditions, and promote a sustainable healthcare environment for
the people of Vietnam.
1.2. International Market:
• Direct competitors:
- Dove: A Unilever brand known for its personal care products, including
hand washes.
- Lux: Although positioned in a higher-end segment, Lux remains a
formidable competitor to Lifebuoy, especially in the female consumer
segment.
- Safeguard: A Procter & Gamble brand offering a range of handwashing
products.
- On1: Not only at affordable prices, but On1 also combines natural
ingredients to create 5 different scents (On1 Vietnam), helping consumers,
especially housewives, have more fresh options.
- Local Vietnamese Brands: Brands such as Thái Dương, Dạ Hương, Cỏ
Mềm Homelab are emerging as competitors in the handwashing market,
particularly in rural areas.
• Indirect competitors:
- Dettol: A major competitor offering antiseptic products, hand sanitizers,
and disinfectants, which also promote hygiene and prevent germs.
- Savlon: Known for antiseptic liquids and hand sanitizers, targeting similar
hygiene concerns as Lifebuoy.
- Lysol: Although focused on cleaning surfaces, Lysol addresses germ
protection and sanitation in a broader context, including personal hygiene
when it comes to disinfecting environments.
- Clorox: Another cleaning product brand that provides disinfecting solutions,
thus indirectly competing in the hygiene space.
- Kleenex: This brand offers products that cater to hygiene needs, especially
in terms of cleanliness and personal care, as alternatives to soap and
handwashing.
• Potential competitors:
- Dettol: Renowned for its strong antiseptic properties, Dettol provides
highly effective germ-killing products and maintains a strong health-
focused marketing strategy, making it a serious contender as hygiene-
conscious consumers grow.
- Savlon: A trusted name in antiseptic products, Savlon markets its
antibacterial handwashes for their effectiveness, directly challenging
Lifebuoy in the hand hygiene category.
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- Dove: Known for skincare, Dove has entered the liquid hand wash market
with products blending moisture and cleansing, appealing to consumers
seeking gentler, yet effective, alternatives to Lifebuoy.
1.5. Public group:
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• Political stability: Markets with a stable political environment create
favorable conditions for Lifebuoy to expand its operations. Surrounded by
a stable political environment, Vienam is suitable for Unilever to expand
their business activities and implement cooperation programs with the
government. During the COVID-19 period, Unilever and Lifebuoy donated
VND 11 billion to 500 hospitals, contributing to disease prevention.
• Support from the government: During the COVID-19 pandemic, the
Vietnamese government encouraged the use of hand sanitizers, helping
Lifebuoy increase sales in rural areas by up to 30% in 2020 alone. In India,
the “Swasthya Chetna” program in partnership with the government and
Lifebuoy has reached 70 million people, increasing the product
consumption in rural areas.
2.2. Economic
• Income level: Lifebuoy typically targets all segments, from low to high
incomes, with affordable products, but the low-cost line helps to capture a
larger market share in developing countries. In Vietnam, small product
packages priced from 1,000 - 3,000 VND/package help Lifebuoy suitable
for people with below-average incomes.
• Economic Growth (Income Increase): The increase in consumption of
hygiene products in developing countries due to increasing demand for
personal hygiene products is a major opportunity to boost consumption. In
Vietnam, after the COVID-19 pandemic, spending on hygiene products
increased sharply, with households spending about 5-8% of their total
income on hygiene and personal care products.
• Inflation and production costs: Raw material price fluctuations affect
selling prices. Prices of key raw materials such as alcohol, glycerin, and
cleaning chemicals have increased by an average of 12% in 2023 (according
to the chemical market report), leading to an increase in the selling price of
Lifebuoy products. Example: The price of Lifebuoy in Vietnam will
increase from 15,000 VND to 16,500 VND/180ml by 2024. In Indonesia,
the price of sachets increased slightly from IDR 500 to IDR 600.
2.3. Social
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2.4. Technology
Innovation and digital leverage have helped Lifebuoy expand its reach,
increase brand recognition, and meet the needs of modern consumers, especially
in the Vietnamese market.
• Product Technology
- Developing Active Silver+: Lifebuoy uses Activ Silver+
technology, a proprietary ingredient, which helps kill bacteria more
effectively, eliminating 99.9% of bacteria. This is a breakthrough
technology, especially suitable for the increased demand for
hygiene after the pandemic.
• Production technology
- Increased automation: At Unilever Vietnam's manufacturing plant,
Lifebuoy applies an automated line system, which increases
efficiency and reduces production costs by up to 15% compared to
traditional methods. Using energy-efficient technology and
reducing emissions, Lifebuoy is committed to achieving a 70%
reduction in greenhouse gases by 2025.
• Digital Advertising
- Using an online platform: Lifebuoy leveraged social media and e-
commerce channels to reach customers. In 2022, traffic to
advertising campaigns on Facebook and YouTube increased by
50%, contributing to an increase in online revenue by 30% in
Vietnam.
- Community education digitalization campaign: Lifebuoy
implements online education programs such as "Wash your hands
properly", reaching more than 2 million students through the Zoom
platform and online classes during the epidemic.
2.5. Legal
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In Vietnam, the strategy of localization and transparency of advertising
messages has helped Lifebuoy maintain a competitive advantage, meeting
consumer demand in an increasingly tight legal context.
2.6. Environment
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(Coopmart, BigC, VinMart) and e-commerce platforms such as Shopee,
Lazada.
• Expanding the product line: Lifebuoy's expansion into new product lines,
including fragranced hand sanitizers, has boosted revenue. In 2021, it
introduced a range with natural ingredients like lemon extract and activated
carbon, appealing to eco-conscious consumers. This move diversified its
offerings and aligned the brand with the growing demand for
environmentally friendly products.
• Strong Marketing Campaign: Lifebuoy’s strong marketing campaigns,
like the "Hand Wash with Lifebuoy Soap to Protect Health" campaign
during the COVID-19 pandemic, have significantly boosted brand
awareness and sales. The campaign, implemented in over 30 countries,
helped Lifebuoy grow its hand sanitizer sales by more than 150%,
according to a 2020 Unilever report.
3.2. Weaknesses
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prices. Lifebuoy, offering products across various price ranges, is well-positioned
to meet the needs of consumers at all income levels.
• Increased demand for health protection and epidemics
With the widespread use of social media, especially among Gen Z and
Millennials aged 18-34, Lifebuoy has effectively divided into this space for
product promotion. Through its "#HandwashingHeroes" campaign on platforms
like Facebook, Instagram, and Twitter, the brand encouraged users to share
handwashing stories. This initiative garnered millions of interactions, fostering a
community focused on hygiene awareness. Reaching over 500 million people
globally, the campaign significantly enhanced brand visibility and encouraged
product adoption.
• Policies from the government
In regions like India, Southeast Asia, and Africa, low-cost domestic hand
sanitizer brands are gaining market share by tailoring their marketing to local needs.
In India, brands like Santoor and Patanjali accounted for 10-12% of the hand
sanitizer market in 2023, according to Euromonitor International.
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In Vietnam, Safeguard, despite being an international brand, has gained
significant traction and competes closely with Lifebuoy. With a similar product
strategy and competitive pricing, Safeguard now holds around 20-25% of the
market share, gradually closing the gap with Lifebuoy, as reported by Nielsen in
2022.
- Competition with products of the same brand
Dove, part of the Unilever group, has expanded its presence in the hand
sanitizer market. While traditionally known for beauty and body care products,
Dove's hand sanitizers have gained popularity due to their gentle formulas,
pleasant fragrances, and premium brand image. According to Euromonitor (2023),
Dove's hand sanitizer line holds about 12-15% of the market share in Vietnam.
• Fluctuations in consumer behavior
- Changes in habits
The surge in demand for hand sanitizers during the COVID-19 pandemic is
largely seen as a temporary shift in consumer behavior. Once the pandemic ends,
many consumers would return to their pre-pandemic routines, leading to a
potential decline in demand for hand hygiene products, especially as the urgency
decreases.
Currently, there are many convenient hand hygiene products on the market
such as hand sanitizer and antibacterial soap, ... Nielsen's report in 2022 shows that
the global hand sanitizer gel market reached $4.5 billion, while liquid hand
sanitizers only account for about 55-60% of the total hand hygiene industry
revenue. This is also a major challenge for Lifebuoy's traditional hand sanitizer
product lines.
- Trend of preference for herbal ingredients and vegan products
STP STRATEGY
I. MARKET SEGMENTATION
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Demographics Age: From children, Children and parents:
teenagers, adults to the Lifebuoy targets children
elderly. through fun marketing
campaigns and education about
the importance of handwashing,
promoting healthy hygiene
habits from an early age.
Products with colorful, child-
friendly packaging will attract
this target group.
Teens: This group is often
influenced by social media and
brand messages that emphasize
health. Lifebuoy can leverage
influencer marketing and digital
campaigns to connect with
young people who are
increasingly health-conscious.
Family: Lifebuoy builds its
image as a trusted, family-
friendly brand, with products
aimed at women and families,
emphasizing family health and
hygiene.
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Income: Lifebuoy offers Lifebuoy offers products at a
products at various price variety of price points to suit
points, catering to low, different income groups:
middle, and high-income Low income: Lifebuoy has
consumers. cheap options that are suitable
for price-sensitive consumers.
High income: Premium
products are suitable for
consumers who are willing to
pay for special formulas.
Promotions: Lifebuoy's
promotional strategies can target
price-sensitive consumer groups
through discounts, promotions,
and family plans.
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Regional Preferences: Lifebuoy can tailor its products and
marketing strategies to suit regional preferences in Vietnam.
For example, regions may have a special preference for
specific scents or ingredients. Tailoring the formula and
marketing message helps Lifebuoy connect more deeply with
consumers in different regions.
Behavior Usage rate: Lifebuoy has Few users: This group may only
three groups of consumers: use hand hygiene products
low use, moderate use, and during epidemics or during
heavy use. Marketing special hygiene campaigns.
strategies can be applied to Lifebuoy was able to engage
attract and retain each of this group through educational
these groups. campaigns on the importance of
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frequent handwashing and
proper hygiene.
Average users: People who use
hand hygiene products regularly
but may change brands.
Lifebuoy can nurture their
loyalty through promotions,
incentives, and education about
the benefits of using the product
regularly.
Regular users: This is
Lifebuoy's main customer
group, using hand hygiene
products on a daily basis.
Lifebuoy is able to build loyalty
through community campaigns
and initiatives that encourage
regular use of the product.
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Family and The family Increasing with Strong emotional
Childcare market, especially increasing connection with
Segment families with large awareness of the parents. Lifebuoy
children. importance of emphasizes the
hygiene. protection of health for
families, especially
children.
Youth The young class This group has Engage this group of
segment (youth and great potential due customers through
students) make up to their interest in social media marketing
a large proportion health and healthy campaigns and digital
of the population. lifestyles. media activities.
III. POSITIONING
Differentiating and Character
Positioning Factors
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Product Diverse product line: Lifebuoy offers different types
Differentiation of products, including soaps, liquid soaps, and hand
sanitizers.
Innovative product formulations: Lifebuoy
incorporates natural ingredients, meeting consumer
demand for organic and herbal products.
• Quality and efficiency: Lifebuoy hand sanitizer kills 99.9% of bacteria and
viruses, helping to protect consumers' health with antibacterial formula,
deep cleaning but still gentle on hand skin.
• Safety for consumers: Lifebuoy is committed to safe products for all ages,
especially children.
• Rapid germicidal ability: Hand sanitizer kills bacteria and viruses in just
a few seconds, helping to maintain public health, especially during
epidemics.
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2.2. Brand
• The Lifebuoy Hand Sanitizer product line includes the following items:
- Item 1: Handwash Liquid: Liquid hand sanitizer can be used in many
different places and situations to help protect health and maintain personal
hygiene.
- Item 2: Hand Soap: Large bottles, used by families,
often appear in supermarkets and convenience
stores.
- Item 3: Foam Handwash: Convenient design, often
placed in public restrooms, hospitals, schools, or
crowded places.
- Item 4: Hand Gel: Commonly used in households
and public places. The gel form is easy to use and
popular in areas such as offices and hospitals.
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4. Decision on product line
4.1. Decision on product line length
Lifebuoy has a long product line with many different options, including gels,
soaps, foams, and baby products. This helps Lifebuoy serve a wide range of
customers and meet many different usage needs, from families to public areas and
medical facilities.
• Hand Gel: Lifebuoy gel products can include many different types such as
antibacterial gel, gel with gentle fragrance, or gel specifically for children.
• Hand Soap: Lifebuoy provides soaps with different capacities such as
500ml, 1L, 5L, serving households or establishments that use a lot.
• Form Handwash: This product type can have many different versions
depending on needs, for example, foam bottles for families or public foam
bottles with large capacity.
• Children's Products: Lifebuoy provides products specifically for children
with gentle formulas that protect children's skin.
4.2. Decision to expand the product line
Lifebuoy not only improves product quality but also innovates design,
packaging and features to adapt to modern consumer trends.
4.4.1. Product Formula Improvement
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- In the same year the refreshing mint product Lifebuoy was introduced to
refresh the brand.
- In 2019, with the outbreak of the covid pandemic, Lifebuoy expanded to
50 new markets in just 100
5.3. Majurity and Decline
However, on the market, more and more soap brands appear, competing
fiercely. Therefore, over the past 20 years, Lifebuoy has continuously strived to
improve products, and at the same time organize and participate in social activities
to widely market to everyone, maximizing its ability to be a best-selling soap no.1
Vietnam.
6. Product Marketing Strategy:
6.1. Target market
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2. Pricing method
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1.3. Channel 2: Distribution through Wholesalers
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3.2. Vertical marketing system - VMS
• In the 4.0 era, Lifebuoy took advantage of social networking channels such
as Facebook, TikTok to reach consumers more easily.
• Brands create the trend like hand washing dances and sharing hygiene tips
to attract attention.
• Some outstanding advertising campaigns: "Tiny little thing", "6 step hand
washing dance", "Tet 2021 - Clean bacteria on your hands", and "Tet 2022
- China returns home".
• Lifebuoy also cooperates with influencers and celebrities to expand
influence.
2. Sales promotion
2.1. Discounts
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2.2. Accompanying gifts
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REFERENCES
[1] https://www.unilever.com/
[2] https://www.unilever.com.vn/brands/personal-care/lifebuoy/
[3] https://www.scribd.com/document/524959507/Mkt-Qu%E1%BB%91c-
T%E1%BA%BF-Lifebuoy
[4] https://www.studocu.vn/vn/document/truong-dai-hoc-kinh-te-dai-hoc-da-
nang/principle-of-marketing/mkt-chuong-3-mkt-chuong-3-lifebuoy/62557714
[5] https://www.studocu.vn/vn/document/dai-hoc-kinh-te-quoc-dan/kinh-doanh-
quoc-te/tong-hop-co-cau-to-chuc-unilever/24041568
[6] https://www.youtube.com/watch?v=VsnP_6kdtDY&t=5s
[7] https://www.unilever.com.vn/news/2023/hop-tac-voi-hoi-nhi-khoa-viet-nam/
[8] https://www.unilever.com.vn/news/press-releases/2023/ky-ket-hop-tac-5-
nam-cung-bo-y-te/
[9] https://www.unilever.com/news/news-search/2022/behind-unilever-brands-
why-lifebuoys-the-worlds-no1selling-germprotection-soap/
[10] https://advertisingvietnam.com/4-chien-dich-noi-bat-tuan-qua-sting-world-
khuay-dao-thi-giac-voi-quang-cao-cgi-ra-mat-dien-mao-moi-lifebuoy-chung-tay-
ung-ho-ngay-quoc-te-chong-ki-thi-lgbt-p24500
[11] https://www.edelman.com/work/lifebuoy-diagnosticker
[12] https://www.youtube.com/watch?v=i6QjJwGOGe0
[13] https://www.youtube.com/watch?v=mTWbWy_aJFE&t=2s