Prepared For Zain Instructor: Principals of Marketing

Prepared By Muhammad Ayaz Khan Reg no. 11228 SEHRISH MANSOOR Reg no. 11425

Submission date December 26, 2010

Assignment & Project Principle of Marketing for MBA Spring 2010

Name Sec/Day: NameSec/Day: Muhammad Ayaz khan Reg. No: 11228 FRIDAY (11:00 TO 1:55PM) SEHRISH MANSOOR Reg. No: 11425

FRIDAY (11:00 TO 1:55PM)

POSITIONING STATEMENT OF LIFEBUOY SOAP

For : Mothers who are sensitive about their family health and creative children (Target customer) Who: Want Healthy and Hygiene life for themselves and their families. (Statement of need or opportunity) The LIFEBUOY SOAP (Product name) is an Anti-bacterial Soap (Product category)

That Fight against body odour causing germs with deodorant effect (Core benefit proposition)
Unlike

Safeguard and Dettol soap (Primary competitive alternative)

Our product

our product affordable for lower income group

(Primary point of difference)

CONTENTS
PAGE NO. OUR MISSION ABOUT UNILEVER PAKISTAN LIMITED CORE VALUES WHAT THEY DO ABOUT LIFEBUOY SOAP CORE BENEFITS MARKETING MIX MARKETING SEGMENTATION TARGET MARKET POSITIONING COMPETITION REPOSITIONING KEY FACTS 02 03 03-04 04-09 10 11 12-15 15-16 16-17 17-18 18 18-19 19-20

EXECUTIVE SUMMARY
Countless thanks to ALMIGHTY ALLAH for giving us extra-ordinary abilities and making us privileged enough to take part in such activities. I would like to thanks my teacher Dr. MAK Chishti for his cooperation and help. He fully supported throughout the class. We express our heartiest gratitude to him. His cooperation made this project a lot much easier. The scope of this project is to discuss about Repositioning Strategy adopted by Unilever Pakistan ltd. Applied on its brand Lifebuoy soap in order to gain their customer confidence back. This project covers the topic includes; Marketing mix, Segmentation, Targeting, Positioning and of course Repositioning and the key facts of brand after repositioning. We will like to add that project will provide the readers and listeners very high profile information about brand Lifebuoy and also about the organization Unilever Pakistan ltd. In the end we would like to say that your feedback either critical or substantial will be highly appreciated.

OUR MISSION

Unilever's mission is to add Vitality to life. We meet Everyday needs for nutrition, Hygiene and personal care with Brands that help people feel Good, look good and get more Out of life.
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Company information
Ehsan A. Malik Chairman and Chief Executive Officer, Unilever Pakistan Limited, effective 1st September 2006, Ehsan was Chairman and CEO, Unilever Sri Lanka Ltd. from 2001 to 2006. His earlier international appointments include: Finance Director Unilever Mashreq, and Special Investigations Manager, Unilever Head Office, London.

Syed Babar Ali Chairman, Coca Cola Beverages Pakistan Ltd., Siemens Pakistan Engineering Co. Ltd., Tetra Pak Pakistan Ltd., Tri-Pak Films Ltd., Aventis Pakistan Ltd., and Bayer Crop Science Pakistan Ltd. Directorships include Unilever Pakistan Limited, Nestle Pakistan Ltd., and Mitchells Fruit Farms Ltd. OBE.UK, he is Pro-Chancellor, LUMS, while previous positions include President WWF-International and Minister of Finance, Government of Pakistan Fatehali W. Vellani A non-executive member of the Unilever Board of Directors since 1977 and presently Chairman of the Audit Committee of the Board. Senior partner of the law firm, Vellani & Vellani, and an advocate of the Supreme Court of Pakistan. Other directorships include Pakistan Tobacco Company Ltd., Shell Pakistan Ltd., Pakistan PTA Ltd. and Roche Pakistan Ltd.

Omar H. Karim Member, Audit Committee and Director Unilever Pakistan Limited. Chairman, Amanah Investments Limited, Chairman, COMMECS Educational Trust and President, Karachi Education Foundation. Ex-Vice Chairman, Pakistan Tea Association and Ex-Chairman, Karachi Chamber of Commerce and Industry Privatization Committee.

Syed Hashim Raza Zaidi Joined Unilever Pakistan Board of Directors, on behalf of the Government of Sindh, in 2006. Currently serving as Director Industries, Government of Sindh, Karachi. His previous appointments include Additional Secretary to Governor Sindh, Managing Director Sindh Industrial Trading Estate (Pvt.) Ltd. and Executive District Officer (Revenue) City Government, Karachi.

Qayser Alam Appointed as Supply Chain Director of Unilever Pakistan in August 2004. From 2003 to 2004 worked at the HPC Asia business group at Singapore in supply chain and innovation, providing support to 17 countries of the Asia region. He has 23 years of experience in various areas of the supply chain function and is currently also a member of the Board of Directors of Rafhan Best Foods Ltd.

Peter I. Harvey Finance Director since May 2004, Peter started his career at Unilever in 1978. Previous posts include Finance Director, Unilever Korea 1997, Commercial Director, Edible Oils Australia 1993.

Zaffar A. Khan Joined Unilever Pakistan Board of Directors in 2005. Currently Chairman of Karachi Stock Exchange while other directorships include State Bank of Pakistan, Pakistan Steel, National Commodity Exchange, Pakistan Institute of Corporate Governance and The Aga Khan Education Board. Previous appointments include President and CEO, Engro Chemicals and Chairman, Pakistan Telecommunication Ltd. (PTCL). Recipient of the Sitara-eImtiaz. Zarrar Haidar Director Industries, Government of the Punjab, Lahore since April 2006 and non-executive member of the Unilever Board of Directors. Previous positions include Deputy Commissioner, Deputy Secretary and Additional Secretary. Also Served as Director of Labour Welfare, Government of the Punjab.

Amar Naseer - Company Secretary Legal Advisor & Company Secretary heading the Legal, Tax & Brands Protection functions at Unilever Pakistan Limited. He joined Unilever in 1999.

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About Unilever:
Unilever Pakistan Limited, formerly known as Lever Brothers Pakistan Limited is a subsidiary of Unilever PLC, UK. ULEVER was incorporated in Pakistan in 1948 as Lever Brothers Pakistan Limited and merged with Lipton in 1989 and Brooke Bond in 1997. It became the largest ice cream manufacturers in Pakistan through an amalgamation with Polka in May 1999. Following these acquisitions, including US-based Best foods, Unilever's foods business is the world's third largest after Nestle and Kraft. It is a global leader in culinary foods, ice cream, margarine and tea-based beverages. It is the largest FMCG in Pakistan and is listed on all stock exchanges of the country Our brands are trusted everywhere and, by listening to the people who buy them, we've grown into one of the world's most successful consumer goods companies. In fact, 150 million times a day, someone somewhere chooses a Unilever product. We have a portfolio of brands that are popular across the globe - as well as regional products and local varieties of famous-name goods. This diversity comes from two of our key strengths:

Strong roots in local markets and first-hand knowledge of the local culture. World-class business expertise applied internationally to serve consumers everywhere.

Our mission:
Unilever's mission is to add vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. Unilever add vitality to life shows how clearly the business understands 21st century-consumers and their lives. But the spirit of this mission forms a thread that runs throughout our history.

CORE VALUES
We are honest, ethical and transparent in our dealing at all time. We deliver what we promise. We win the hearts and minds of our consumers and customers. We are empowered leaders, who are inspired by new challenges and have a bias for action.
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We believe in trust, truth and outstanding teamwork. We value a creative fun environment. We care about and actively contribute to the community in which we live.

What they do:

Food brands:
Unilever is one of the world's leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice. Unilever Pakistan Foods Limited, formerly known as Rafhan Best Foods Limited (RBL) has been one of the leading producers of consumer food products in the country. The spectrum of RBL s product range contains some of the leading brands like Rafhan, Knorr, Energile, Glaxose-D, Best foods etc. RBL was incorporated in Pakistan 1997 and is listed on Karachi and Lahore stock exchanges in Food and Allied sector. On 24th April, 2007 Rafan Best Foods Limited was renamed Unilever Pakistan Foods Limited Currently, Unilever Foods Pakistan has 5 major brands: Knorr, Rafhan, Energile, Glaxose-D and Unilever Food Solutions.

Unilever is the worlds leading manufacturer of margarine. Blue Band, a world renowned brand that was launched in Pakistan more that 20 years ago. It is a good source of 7 essential vitamins (A, B1, B2, B6, B12, D3 and E) that are necessary for healthy growth and development, both for children and adults.

Brook Bond A1 is the strong cup of tea that gives the strength to face challenges and stand up for what you believe in.

Flora margarine spread is an important source of good fats which help keep your heart healthy.

Lipton offers an option to tea lovers to enjoy their favorite drink in an exciting and refreshing way.

Lipton Pearl Dust is the Sindhi soul that imbues intimacy and warmth in a couples relationship

Brooke Bond Supreme is part of life for the Pakistani consumer, bringing families closer together with its rich taste and traditions.

A Unilever Food solution is one of the world's leading global foodservice businesses. We work with customers including caterers, restaurateurs and major hotel and fastfood chains to create food solutions that help grow their business.

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Walls adds to the simple pleasures in daily life

DONUT was received enthusiastically giving the Walls Impulse portfolio a boost of 38% growth and high recall. CORNETTO, our lead brand, enjoyed a phenomenal 46% growth with a very effective Copy Cats Activation aimed at creating emotional relevance for the consumers. PADDLE POP, focusing at children, launched Rocket Kulfi & Super Twin helping the brand grow by a healthy 44%. MOO Dairy Ice Cream created a sensation with its Goodness of Milk for young children, helped by on-ground sampling activities. 40

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Market share of beverages, ice-cream and spreads-2010:

Beverages:
Net sales for FY08 grew by 22%. A sharp rise in Kenyan tea prices of around 24% and the currency devaluation resulted in lower than expected gross margins. Lipton Yellow Label and Brooke Bond continues to grow, amidst cut-throat competition in mature tea market, on the back of various promotional campaigns and trade offers was supported through customer activation strategies.

Ice-creams and spreads:

Gross sales for Walls in FY07 increased by 9%, well below expectations. In FY07, the monsoon was earlier and more severe, there were acute power shortages in the south and there were delays in completing the factory expansion project, because of cold storage facilities in Karachi and Lahore, resulting in serious supply disruption in 2Q07. On spreads side, Blue Band Margarine registered a 23% growth on the back of successful brand activation programs. However, the overall margins for the segment remained flat at 40%.

Home care brands

In many parts of the world we lead the home care market, with brands such as Omo, Surf, Comfort and Cif. It's more than just hygiene with homes and clothes that are clean and cared for, we help you get more out of life.

Comfort was launched in Pakistan in July 2007 and is available in 3 variants

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It offers unbeatable whiteness with a remarkable fragrance leaving your clothes smelling fresh and looking great.

Free to explore, returning home covered in dirt and other stains. DIRT IS GOOD

Personal care brands

Our personal care brands, including Dove, Lifebuoy, Lux, Pond's, Rexona and Sun silk, are recognized and respected around the world. They help consumers to look good and feel good and in turn get more out of life.

Asias leading fairness brand.

Clear spells confidence for the young Pakistanis of today.

Our mouths are our gateway to life.

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Providing healthy hair to all Pakistani consumers.

Lifebuoy aims to provide affordable and accessible hygiene solutions that enable people to lead a life free from hygiene related worries, everywhere, regardless of the boundaries of nationality, religion and socioeconomic status.

Making a real difference to women's skin and the way they live their lives.

Lux brings out the star in you!

With Rexona you know your deodorant wont let you down.

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Sun silk provides real solutions to women's everyday hair needs everywhere.

To help you enjoy great, healthy skin every day.

Market share of Health and Personal Care Products-2010:

The HPC continues to be the major driver behind the top and bottom line growth. In FY08, net sales for this high margin segment increased by 42% (on account of both volumetric growth and inflationary impact), thereby increasing its contribution to the top line to around 52% from 52% last year just because of laundry detergent Powder ,lifebuoy shampoo & soap. However, optimal advertising and low operating costs led to a profit growth of 38%.

OVERALL SALES GROWTH:

This growth was particularly impressive considering the recent trends of increasing commodity costs, devaluating rupee, high borrowing costs and increasing power cuts. Sharper focus and increased resource allocation in marketing and customer management was the Overall, the sales grew an impressive 32.7% (2006: 11.17%) as it built on the growth momentum started in 2005. prime drivers. The sales mix improved with robust growth in Home and personal care. Beverages' sales grew by 22%. Though spreads sales grew by 24.5% it did not meet the expected performance levels. However, this overall sales growth did not trickle-down to the bottom line mainly due to shielding the customers from the impact of high input and conversion costs. Despite high COGS (increase of 40.5%), overall gross margins improved by around 20% in FY08 on the back of growth in HPC segment, which contributed 66% to the gross profit. The overall PAT for FY07 increased by a measure 17.6%, after the

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measure growth of 2% in last year. This was due to the volume increase in all segments, especially HPC and tea business. (Source: Business Recorder)

About lifebuoy
For more than 60 years, Lifebuoy has been the No.1 protector of Pakistan with an Endeavour to improve lives of millions by spreading the message of health and hygiene. Lifebuoy is one of Unilever's oldest brands. Soon after launch, Lifebuoy soap travelled across the world, reaching countries such as Pakistan, where even today it is still the market-leading brand. Health and Hygiene education is the core Lifebuoys plans.

Product idea:
In 1894, William Hesketh Lever launched Lifebuoy in the UK as the Royal Disinfectant Soap. Lever grew up in industrialised Bolton, Lancashire, which was a typical English city of the Industrial Revolution era, with thousands of people living in slums where disease ran rampant. Epidemics of typhoid, dysentery and yellow fever were common and infant mortality was exceptionally high They also demanded a preventative approach to reduce disease and illness that were primarily caused by unsanitary conditions. Lever was actively seeking the perfect formula for a soap product that could combat germs and still be affordable to everyone. In what could be termed as a major scientific breakthrough of the era, he found just that in carbolic acid.

The role of carbolic acid

Discovered in the 1860's, carbolic acid had antibacterial properties and was frequently used in hospitals. Lifebuoy soap became the world's first health soap to contain the revolutionary ingredient. . It became a daily fixture in their lives, as it provided the entire family with hygiene and protection from disease a true 'lifesaver'.

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Core benefits
Lifebuoy is now in a superior formulation offering a new health fragrance and a contemporary shape. The new formulation offers a significantly superior bathing experience and skin feel.

The original red Lifebuoy with an improved new fragrance and unique shape gives all day protection from germ for the entire family. Special formulation that fights against body odour causing germs. Along with the deodorant effect it offers the unique Lifebuoy germ protection for the entire family. Special formula which is gentle and caring and takes care of delicate baby skin. It protects you and your baby from germs all day long. It has moisturizer which keeps your skin soft and supply while protecting you from germs. Encouraging people to change their habits, like washing hands with soap before touching food and after going to the toilet, is essential. Lifebuoy Hand Wash is proven to protect hands from harmful germs that can cause diarrhea, stomach infections etc.

Lifebuoy is continuously improving to keep up its promise of keeping the entire family healthy, so you can enjoy your life without the fear of germs. So go ahead and enjoy your life, because where there is Lifebuoy, there is no fear...

MARKETING MIX
4Ps of marketing discussed below; Product Price Place Promotion

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Product
Product is what is perceived to be. Thus a product is more than something with physical characteristics. In a very narrow sense a product is set of tangible physical assembled in an identifiable form. Unilever has a wide range of its product. Unilever conduct a regular research and surveys on the changing habits of the taste of the customer. Results are then given to special research and development department and accordingly new product are lounged and even alternations in the existing products are done. Their policies are usually between innovative and initiative categories of new products developments. The product portfolio of Unilever Pakistan discussed above:

Place
Registered office Avari plaza, Fatima Jinnah Road, Karachi. Rahim Yar Khan Factory Unilever Pakistan limited Laghari road Rahim yar khan

Prices
Pricing is the most important element of product mix. If prices were set too high no one even give a damn look to your product because there will be other products available. So while setting price one should be very considerate and remain practical to the cause. LIFEBUOY prices we think are OK. Anyone can buy it without any hassle.

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LIFEBUOY (RED, TOTAL PROTECT,ANTI-FRESH, NATURAL PURE AND MILD CARE) MANI BAR Rs. 10/ 55gm bar Rs. 15/ 80gm bar LARGE BAR Rs. 22/ 125gm bar

MEDIUM BAR

Placement / Promotion
Promotion consist of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and greater purchase of particular product/services by consumer as the trade. Unilever Pakistan Limited places their products in local as well as in foreign market. They export directly and indirectly. Unilever promote their products through media, and other trade incentives to distributors and wholesalers.

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Company logo and labelling:

Company logo type is one of the major products. But not on products with the small levels where the space is needed to present both information required by the government and other information they believe is helpful to the consumer. Company name or the logo type is usually shown in most prints add in magazines and newspapers.

LABELING:
Unilever is using two types of labels: Brand label Descriptive label

ADVERTISING STRATEGY
MEDIA USE Unilever Pakistan Limited uses following sources for advertising purposes: Radio TV Billboards Newspapers Door to door visit

PROMOTION CAMPAIGN Promotional activities provides chance to company to communicate with the potential consumer to Beat the drum about it products. Advertising. Newspaper. Magazines. Television. Radio.
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Road display.

Sales promotion Coups. Premiums. Samples. Trade shows. Co-operative.

Personal selling. Order getter. Order takes. Support sales. People sales force.

Publicity. News. Features and Others.

Market segmentation:
Psychographic Segmentation. Demographic Segmentation. Geographic Segmentation. Behavioural Segmentation.

Psychographic segmentation Social class: middle and lower class. Lifestyle: outdoor oriented and sports oriented. Creative children.

Demographic segmentation Age 6 50+. Gender anyone. Family size 2, 3, 4, 5+. Income 5000+. Target area: lower income group.

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Geographic segmentation World region: Asia. Country: India and Pakistan. Cities: all cities of India and Pakistan.. Target area: urban, semi urban and rural areas.

Behavioural segmentation Benefits: total protection antibacterial soap User status: Regular. User status: Heavy user usually in the age of 5 50+

Target market
Unilever uses Differentiated marketing for lifebuoy soap, as they target market segments and design separate product (variety of soaps, hand wash, shampoos) for each. MOTHER- THE HEALTH DOCTOR: The idea of the mother as a protector of family health evolved into timeless theme and is a part o of Lifebuoy advertising even today. Children Children are the most targeted segment of lifebuoy because they are mostly affected from germs .lifebuoy mission is to create awareness about How to prevent from germs especially among children age 8 to 18 years. In order encourage childrens life buoy proposed a plan consist on 5 occasions

Before breakfast Before lunch Before dinner During the daily bath Immediately after visiting the toilet

Lifebuoy targeted children aged approximately 5 years old in Pakistan and their families. In total more than 2,000 families took part in the study.

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Positioning- lifebuoy soap

Lifebuoy has been the No.1 protector of Pakistan with an Endeavour to improve lives of millions by spreading the message of health and hygiene.

Lifebuoy brought to life its activation platform of ignite the hero within by launching the activation of Lifebuoy Germ Busters. To inspire the kids to be empowered and protect this world from health and hygiene threats.

A global brand from the start; a global brand today:

Lifebuoy first came to South Asia via India in 1895, entering a large, complex market. By the mid-1930s, there was such demand for the brand that the Lever Brothers started manufacturing Lifebuoy soap at several factories in India. A number of sophisticated distribution routes by road, rail and water channels were created to extend the brands reach to consumers in Sri Lanka, Burma, Bangladesh, and Pakistan markets that all had a pressing need for hygiene education and disease control. As one of the first carbolic soaps to be sold in these markets, the antiseptic properties of Lifebuoy provided vital hygiene protection, and the brand continued to communicate its core mission: to ensure a healthy life through hygiene. A similar story unfolded in Africa, where Lifebuoy was one of the first branded soaps to enter the continent in the 1890s. In 1949, Lifebuoy made its foray into South East Asia via Indonesian. Indonesia was a country whose population was largely rural and relatively poor. Similar to South Asia and Africa, the country faced the challenges of epidemics and bad sanitation. Here too, Lifebuoy promoted to consumers the need to wash regularly with Lifebuoy soap to ensure a healthy lifestyle. Today, Lifebuoy continues to bring innovative products and hygiene education programmes to people across markets such as Kenya, Tanzania, Uganda, Malawi, Zambia, Vietnam, Pakistan, Sri Lanka, and Indonesia.

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Positioning through contribution in swing flu

Swine flu, or A/H1N1, is a new strain of flu virus; its symptoms are very similar to seasonal flu. At the moment, scientists are not sure where it comes from, but through research they recognize its seriousness and found who the victims of it are. One thing that they suggest is to wash your hands regularly with soap to protect yourselves from infection. Message of lifebuoy soap
Catch coughs and sneezes in a clean tissue and throw the tissue safely in the bin. If you haven't got a tissue, use your hands but wash them thoroughly with soap straight away. Wash your hands thoroughly & frequently with soap, especially after being in crowded public places and around food. Wash your hands well with plenty of soap and dry them with a clean towel. Treat your hands as contaminated. Don't touch them to your eyes, nose and mouth. Don't shake hands or get too close to someone who seems unwell.

COMPETITION
Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. Lifebuoy soap faces strong competition from two strong brands i.e. DETTOLE and SAFEGUARD. In order to be ahead of their competitors, in 2008 Unilever Pakistan repositioned Lifebuoy soap successfully.

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Repositioning of Lifebuoy soap

Lifebuoy soap is a very old brand of bath soap in Pakistan, Life Buoy is an anti bacterial soap and in the beginning it positioned itself on its antibacterial qualities, life buoy gained a number of customers with this positioning, but then there comes the competition first the Safeguard and then Dettol soap, these two soaps are from very strong companies especially safeguard is on P&G which is one of the largest consumer products companies in the world, Safeguard offers better quality soap with good fragrance, apart from these features, Safeguard adopted fear strategy in its advertisements and it helped it in gaining more customers and soon Safeguard became the first choice in antibacterial soaps. Safeguards effective campaigns including character of Commander Safeguard out turned every competition, only Dettol soap was competing head to head with safeguard. All this put Lifebuoy out of lime light and to survive in market, Lifebuoy positioned itself on price it became low price antibacterial soap. This strategy may have boosted short term sales of Lifebuoy but it lost its brand value and credibility in the minds of customers. Lifebuoy needed to reposition itself on quality rather than price.

REPOSITIONING CAMPAIGN:
The repositioning campaign of Lifebuoy was started at 2008, but it became more prominent and became effective in 2009, Lifebuoy along with the advertisement has improved its quality and fragrance To capture customers attention especially, parents who are their target market Lifebuoy came up with their advertisement HEALTHY HOGA PAKISTAN., Its effective ad and is used fear strategy which enable them to get more and more customer. With the help of marketing department and advertisement, Lifebuoy has successfully repositioned itself as a quality antibacterial soap with better fragrance and more durability. Now days, Lifebuoy is everywhere in Television, Radio, Newspapers and Billboards, Lifebuoy is running a huge campaign to promote itself which is very necessary in case of repositioning the brand.

The interesting thing about this campaign is that Lifebuoy is running the same campaign in Pakistan and in India as is done by Unilever, this suggest that Lifebuoy is considering India and Pakistan as the similar market segment. (August 28, 2009)

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Key facts:

Today Lifebuoy is mainly sold in Asia and parts of Africa. It is a market leader in every Asian market where it is sold Lifebuoy soap has been proven in laboratories to provide 100% more effective germ protection than ordinary soaps To date, millions of people in rural and urban Pakistan have experienced the pioneering, Lifebuoy sponsored Health Education programmed the single largest private hygiene education programmed in the world In 2005, Lifebuoy was awarded a 'Citizen Brand' accolade in Indonesia in recognition of the work the brand has undertaken in hand wash education

Nearly half of the Lifebuoy brand's consumption is in rural Asia, where most of the populations live on less than US$1 per day.

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