NITIE, Mumbai :: Sharper Problem Identifiers: Need of the Hour

NITIE, Mumbai
Sharper Problem Identifiers: Need of the Hour
11 July, 2006

Ask any b-school student and there will hardly be an exception on where he/she places Hindustan Lever Limited, in their order of company preferences. A brand that even the common man relates to this day, it offers challenging and exciting work opportunities to all its employees. In its tradition of inviting corporate giants to share their success mantras with the emerging faces of management, NITIE was graced by the presence of Mr. Ashok Venkatramani, Vice President, HLL for their B-Gyaan session. An IIM Ahmedabad alumni and one who cherishes interacting with fresh minds, he gave the audience an insight into both the FMCG industry and turn around of certain flagging brands.

With the beauty and health sector witnessing a considerable growth rate over the past 10 years, the skincare industry has become one of the most lucrative areas of investment. Its fueled by the fact that a near 100% penetration could be achieved in both the urban and the rural market. Some of the business challenges that plagued the industry were

Low entry barrier – fear of competition looms large

Multifold increase in advertising expenses by companies

Need to make far sharper choices

High cost base – chokes ability to fuel growth

More into specifics, he explained how he and his team had actually turned around the drooping sales of Lux soap and the challenges faced. Lux, which had been considered the soap of film stars, had the distinction of being the most trusted cleansing brand for 3 years and actresses till the 90s used to do free advertisements for it. Post 2003, it saw a sharp decline in market share wherein in one year it lost about 1 out of the total 5crore households. The task before the team was three pronged

Containing the decline – of highest priority
Strengthen brand image
Upgrade discount soap users

With its new launch in 2005 giving it a new shape and global packaging advantage, an aggressive campaign was launched to promote it. Capitalizing on its star value, the campaign concentrated on 75 years of stardom and "come and explore the word of stars" tag line. A nation wide thematic process was adopted and a rapid trial was conducted for the new product. A lucky star contest and star on each pack, things brightened up and market share showed some improvement. A chocolate solution and its aromatic flow made Lux an exotic soap offered at regular prices. It had captured the No.1 brand again followed by lifebuoy in the soap industry.

The key lessons that were learnt from this exercise according to him were

Need for sharper problem identifiers
A 360 degree approach to solving problems
Metro marketing
Powers of PR and how it helps in brand building
Identification of key triggers for rural growth
Need to keep in touch with customers all the time
Big gains come with big risks

His analysis of the Lux case along with his experience was a truly enchanting and enriching experience for each one of the aspiring managers in the auditorium. The next time one reads a marketing textbook I know it will not be the same. This experience would have changed the entire perspective and marketing would be at its interesting best!

----------------------------
Harsha Venkatesh
Media Coordinator
Management Class 2007
NITIE, Mumbai
impress.nitie@gmail.com

Source: By E-mail (July 18, 2006)

published on IndianMBA.com on July 20, 2006

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