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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