Unilever's Lifebouy in India: Implementing the Sustainability Plan (Case Analysis)
Question 03. As Sitapati, what decision
would you make regarding the three-handwashing behavior change programs that
have been proposed? What risks and benefits are associated with each?
First Option: The KKD Rural Outreach Initiative
Risks |
Benefits |
Cost of the program is higher. |
This
program ensures the maximum customer base for lifebuoy. |
long
payback period. |
This
also creates loyalty among customers which will be useful for the brand in
the long run. |
The
Lifebouy demonstrations to housewives is not resulting in a sustainable
behavior change. |
Ability
to reach remote rural media dark areas. Since it is focused on the rural area
Lifebuoy will be able to create a better social impact. |
This
promotes multiple brands. (Not just a single product, but multiple products
of Unilever like Surf, Close up etc. Thus, the cost is absorbed equally by all
these products.) |
Second Option: The MP Partnership Initiative
Risks |
Benefits |
Long
payback period. |
Training
children could influence the family behavior. |
Time
consuming. |
The
scope of expansion to other Indian states. |
The
training and materials could not be branded with Lifebouy’s name. |
The
MP government would provide school access and support. |
Third Option: The Urban Schools Liquids Initiative
Risks |
Benefits |
Focused
only on urban population and reach only 1.5 million people. |
Influence
of handwashing behavior on whole family by children and improvement in
hygiene. |
Distraction
from the organization’s attention. |
Short
payback period. |
Price
sensitive customers in India will show less adoption of this product. |
High
growth segment. Growing a 40t%
annually. |
Have
high profit margins. |
The third option is the most effective behavioral change. It has the potential to change the behavior
while also boosting revenue and profits. This option gives a higher social outreach
while simultaneously meeting the financial objectives. Therefore, this behavior
change program will have a combined advantage of being sustainable and
scalable.
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