Soap

Pr oduct Number 000
Rel eased August 31, 2003

Rel eased December 12, 2003

From the Department of
LEADI NG I N THOUGHT AND ACTI ON
CORPORATE STRATEGY AND INTERNATIONAL BUSINESS

CASE STUDY SERI ES

[

This report was written by Mindy Murch and
Kate Reeder, under the supervision of
Professor C.K.Prahalad. The reports are
intended to be catalysts for discussion and
are not intended to illustrate effective or
ineffective strategies.

Copyright, The University of Michigan
Business School, 2003

Selling Health:
Hindustan Lever Limited and
the Soap Market
Introduction
In the category o inectious diseases, only acute respiratory inections
and AIDS kill more people per year than diarrhea, which accounts or
!.! million deaths annually.
N

India contributes to !0/ o all diarrhea deaths in the world.
O

1hese statistics outline the pervasiveness o diarrheal disease in the
developing world and the tremendous toll it takes on the public health,
especially among the poor and children. In India alone, J.!/ o the
children suer rom diarrhea.
!
At the same time, the preventive
measures and cures are relatively simple: access to sae water and
sanitation acilities and instruction on better hygiene practices. Yet, in
spite o the eorts o NGOs, developmental agencies and governments,
the problem persists. So what is a viable solution
THE INNOVATION. . .
The paradox of diarrheal disease is that the solution is known and
inexpensive, but it is difficult to reach and educate the poor about
the need to wash hands with soap. Hindustan Lever Limited (HLL),
the largest soap seller in India, created a unique approach to public-
private partnership as a solution, as well as made this public health
issue an integral part of their business.

1his document traces the eorts o HLL, the Indian subsidiary o
Unilever, in combating the social health issue o diarrheal disease
through innovative methods o marketing a common consumer good--
soap.


2003 Uni ver si t y of Mi chi gan Regent s
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DIARRHEAL DISEASE
Globally, diarrheal disease accounts or more than !.! million deaths annually.
Q
Children are particularly
susceptible due to loss o liquids and dehydration rom diarrhea. UNICFI estimates that one child dies
every !0 seconds rom diarrheal disease,
R
making it the second-greatest inectious killer o children in the
world today.
S
India is by no means immune to the problem o diarrheal disease. National surveys estimate
that almost J0/ o the population suers rom diarrheal disease at any given time,
T
resulting in an
estimated 660,000 diarrhea-related deaths per year in India.
U

What causes diarrheal d sease? i
i
Research has proven that human ecreta is the main source o diarrheal pathogens.
A lack o adequate
sanitation acilities or disposal o ecreta and poor hygiene practices results in the diarrheal disease
pathogens being carried throughout the human environment. 1here are our key ways in which
pathogens are transmitted: through drinking water, rom lies and insects, physical contact with dirt and
rom human hands.
J0
Ilies landing on ecreta can carry pathogens to ood or suraces used to prepare
ood, and eet may track waste into the home. However, hands are the main vector o diarrheal
pathogens, transerring them rom surace to surace and person to person.`
JJ
Yuri Jain, at HLL, describes
daily lie in India, Hands eed a child, hands prepare ood and in an Indian contet people don`t typically
use knives and orks.everything is done with your hands, so that`s a transmission mechanism.`
J!
1here
is weaker evidence that hands are also a main pathway or the transmission or Acute Respiratory 1rack
inections (ARI).
J!
Statistics show that at any given time, over 6/ o the population suers rom ARI.
J!

A lack o sanitation acilities is widespread throughout India. 1he ma;ority o India`s population is
poor, with approimately 8!/ o the population (88 million people) earning a median household
income o less than !000 rupees (3!!) per month.
J
Almost !/ o the country is living below the poverty
line.
J6,J
Moreover, less than !/ o the Indian population has access to modern sanitation acilities, and
6!/ o the population uses the bush or ields as toilets.
J8
1he number diverges widely by urban and
rural populations. As o !000, !./ o India`s more than one billion people live in urban areas, while
!.!/ live in rural areas.
J
A J sanitation report rom WHO/UNICFI revealed that in rural areas,
only J6.8/ o the Indian population use a lush toilet, pit or latrine, and 8J.J/ have no acility and use
the bush or ields as toilets.
!0
1he same report stated that 60./ o urban Indians own a lush toilet, pit
toilet or latrine, and J.!/ have no acility or use the bush or ields as toilets. Handwash habits also
dier in urban and rural areas. 1wenty-si percent o urban Indians (J! million) and !/ o rural
Indians (!! million) do not wash their hands with soap every day.
!J
Handwash as a prevent ve measure
Research on preventive behaviors or diarrheal disease shows that washing hands with soap could
signiicantly reduce incidences o inection. In J88, research conducted by the World Health
Organi.ation showed that washing hands with soap reduced diarrhea attacks by !8/.
!!
A recent evidence
review by Valerie Curtis and the London School o Hygiene and 1ropical Medicine ound handwashing


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with soap could cut diarrheal disease by !!/ to !6/.
!!
Changing behavior to increase the requency o
handwash is theoretically capable o stopping most or all transmission o the inectious agents` rom
diarrheal diseases.
!!
Washing hands also could be eective in reducing the spread o ARI.
!

Currently, handwash and soap usage is low among most o the Indian population. Although the
penetration o soap in Indian households is actually very high, with / o Indian households owning
soap, 66 million Indians do not use soap every day. O these, !6/ are urban Indians (J! million) and
!/ are rural Indians (!! million).
!6
Only !0/ o the population uses soap everyday.
!
Others use
substitute products such as clay, ash or mud. 1he International Scientiic Iorum on Home Hygiene:
Rural Study ound that ater deecating and beore and ater every meal, 6!/ o the population used
water plus ash/mud, !!/ used water alone and only J!/ used soap and water.
!8

The need for behavior change
I a solution to diarrheal disease is simply washing hands with soap, why is this problem still stunningly
pervasive Historically, this issue has been approached as a public health issue that could be solved
through large inrastructure pro;ects, a timely and costly proposition or governments in developing
countries. In addition, three other reasons are ascribed or the persistent incidence o diarrhea.
!
Iirst, the
disease ell into the multiple domains o Ministries o Public Health, Water or Fnvironment. However, no
group ever assumed ull responsibility or the disease. Second, attention has been ocused on hot` issues
such as HIV that command more public attention, leaving diarrheal disease to be championed by no
one.` 1hird, behavior programs to address diarrheal disease are diicult to design and implement, and are
more comple and problematic than epected.`
Changes in consumer belies and behavior are especially diicult to engineer in India. Iirst, a deep
understanding o the current practices, motivations and hindrances preventing the use o soap and
handwashing is required. 1his understanding is diicult to obtain in a country dominated by local
cultures. India`s one billion citi.ens are spread across ! states and seven union territories. 1hey speak
more than J oicial languages and !! dierent dialects, many o which are so dierent they are only
understandable to those in a small geographic area.
!0
Second, messages on health and hygiene to create
behavior change are diicult to communicate to dispersed populations. Many rural parts o India are
media dark` areas, where citi.ens have little to no access to mass media channels.
!J
Only !!/ o the
population has a 1V, and only !!/ has a radio.
!!
1his lack o a mass communication venue adds
compleities and costs to education campaigns, requiring targeted messages distributed through
unconventional means.
A public health issue in the private realm
Given these compleities in developing and delivering an eective behavioral change campaign, a multi-
national soap manuacturer (MNC) may be better equipped to reach Indians with health messages to
reduce diarrheal disease. 1his behavior stems out o the belie that water or other substitute products clean
as well as soap. Yuri Jain at HLL eplains, We should really think about why a lot o these public
programs haven`t been as eective as they could have been. When put into the contet o handwash and
water, a lot o it actually involves changing consumer behavior and that`s the cru o the matter. You have


4 of 27
a way o doing it, and you change the way o doing it. And who is better placed at changing habits than a
large company.`
PP
MNC`s may be in the best position, with the ollowing unique capabilities, to take on
the challenge o combating diarrheal disease:

Deep eperience in conducting and analy.ing consumer research to identiy behaviors and trigger
points or behavioral change.
Marketing epertise to crat communication messages and direct contact programs that can bring
about behavioral change.
Strong brands that can serve as routes or driving behavioral change riding on their consumer
equity.
Fperience in adapting their products and messages to meet local conditions, cultures and traditions.
Vast distribution networks to deliver products to consumers even in the most rural settings.
Fperience in sharing lessons learned and transerring best practices to increase the eiciency and
eectiveness o their operations on a large scale.
Accountability or achieving results by careully evaluating investment in pro;ects to ensure success.
Global reach, with the ability to touch customers in many countries with similar messages and
products, and quickly scale pro;ects rom local initiatives to regional and global endeavors.

Iinally, MNCs sell soap, a product which can address diarrhea, and have a built-in incentive to
successully create the required behavioral changes.
Hindustan Lever Limited
HLL is the largest soap and detergent manuacturer in India, with 3!.! billion in sales, !0/ o which is
rom Soaps and Detergents.
!!
In recent years, the CFO`s increasing ocus on dierentiating HLL`s
products based on a health platorm has pushed employees to delve deeper into consumers` needs and
behaviors in an eort to ind opportunities to make their products become imperative to a amily`s health
and saety. One means o making this connection was the tie between diarrheal disease prevention and
HLL soap products. Yuri Jain, a General Manager at HLL, eplains, When you ask yoursel how do you
break the transmission o disease with hands, you come up with handwashing with soap. And that clearly
suggests there is great business imperative or us to try.to make that happen because we are the largest
manuacturer o soap. I people start washing their hands with soap more oten, the consumption will go
up and there is an impact on market si.e.`
!
1his clearly could be a win-win` solution or both the BOP
consumers and the company.
Not only would this ocus on increasing the demand or soap beneit HLL, but it also could beneit
Unilever in other parts o the world. In developed countries, the soap market is reaching a point o
saturation. However, in developing markets, the opportunity or growth still eists. 1he opportunity to
increase the si.e o market lies in increasing the requency o use in India and other developing nations.
Moreover, this opportunity to grow sales through health messages eists beyond the soap market and
could be used to address other public health issues.

The largest soap manufacturer in India
HLL`s mission outlines a broad philosophy o serving all Indians, across the wealthy and poor, rural and
urban spectrums:

Our purpose at Hindustan Lever is to meet the everyday needs o people everywhere - to anticipate the
aspirations o our consumers and customers and to respond creatively and competitively with branded products
and services, which raise the quality o lie.

Our deep roots in local cultures and markets around the world are our unparalleled inheritance and the
oundation or our uture growth. We will bring our wealth o knowledge and international epertise to the
service o local customers.

1o meet the needs o such a large and diverse country, HLL has our key Proit Centres, delivering over
J000 SKUs through its !0 plus power` brands. 1he largest Proit Centre is Soaps Detergents, ollowed
by Ioods Beverages, Personal Products and Specialty Chemicals (see Iigure J).

Figure 1: HLL Net Sales, 1992-2002
36

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Year
Others
Chemicals
Foods & Beverages
Personal Products
Soaps & Detergents

5 of 27


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HLLs ability to reach the masses
HLL has built superior RD, distribution and marketing capabilities to eectively deliver its goods across
both urban and rural India. HLL employs more than J00 scientists to develop new consumer goods and
pioneer eiciencies in manuacturing. Its investment in RD resources is returned in cost savings and the
ability to price goods aordably to mass markets.
HLL also has assembled the manuacturing and distribution capabilities to provide its products to
India. Products are manuactured in almost J00 locations throughout the country. Irom actories, the
products move through a network o central depots to almost ,00 redistribution stockists.` 1he
stockists work through wholesalers or retailers to sell into three million outlets located in !,68 cities
and towns in urban India, and in one million outlets in 6!,000 villages throughout rural India.
!

Currently HLL reaches into all villages with more than !,000 people and continues to epand its market
reach through innovative direct sales programs to distribute products to rural areas. Ior eample, an
initiative called Pro;ect Shakti employs women to occupy a nontraditional role in commerce, selling
HLL`s products in their villages. Another initiative, Pro;ect Streamline, creates Star Sellers` to sell an
array o HLL products into rural areas.
In order to understand consumer behavior along the socioeconomic spectrum, HLL invests a
signiicant potion o its earnings on consumer research and marketing to better position its products in
mass markets. Large ependitures on both mass and direct marketing campaigns have made HLL
brands such as Liebuoy soap, Wheel detergent and Iair and Lovely soap household names across India.
HLL also invests in nontraditional and grassroots marketing eorts to reach rural and poor consumers.
HLLs formula is working
HLL`s inancial perormance relects its success in eectively creating, marketing and selling its brands.
HLL has achieved solid growth with net sales increasing rom less than 300 million to over 3!. billion in
the last J0 years (see Iigure !). 1his growth is due to growing market share as well as acquisitions and
mergers.


Figure 2: HLL Net Sales, 1992-2001
38
0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Year
N
e
t

S
a
l
e
s

In !00J, net sales were up over !000, and net proits increased by over !/ despite an overall economic
slowdown in India.`
!

BUSINESS OPPORTUNITY THROUGH HEALTH
1he global soap market is increasingly saturated with products, while developing markets hold greater
promise or growth opportunities. Currently, the ma;ority o Indian consumers have soap in their homes,
but usage is low since consumers don`t associate washing hands with soap as a method or preventing
disease. Also, beauty messages dominate ideas about the primary use o toilet soap, and daily washing with
soap is not considered necessary or beauty by the Indian consumer. 1he opening in the competitive
landscape, thereore, is to shit the positioning o soap rom a beauty platorm to a beauty and health
platorm as a means o increasing consumers` requency o use.
The worldwide soap market
1he worldwide soap market in !000 was US388.! billion, and is dominated by a ew ma;or global players
including Unilever, Procter and Gamble, Colgate Palmolive and Johnson Johnson. 1he top J0-industry
leaders account or / o total soap market (see 1able J).

7 of 27


8 of 27
Table 1: Value of Soap Market Held by Top 10 Players
40
POSITION COMPANY % OF WORLD MARKET
J Unilever J0.0
! Procter Gamble .!J
! Gillette Group .66
! Colgate Palmolive !.
Johnson Johnson !.!
6 Shiseido !.!!
Fstee Lauder !.!J
8 Revlon !.!!
Wella !.!
J0 Henkel !.!

At the global scale, however, developed markets are becoming saturated. Market growth has been mainly
attributed to new product developments and etensions into anti-bacterial and moisturi.ing products,
liquid and shower soaps, and products ocusing on added value and convenience.`
!J
1hese markets are
epected to tighten in the net ew years due to increased price competition and consolidation between
soap manuacturers, leaving multi-nationals to seek out new markets in developing countries.
!!

Unilever as a whole is epecting developing markets to comprise approimately 0/ o its sales
over the net J0 years.
!!
In emerging markets, the ma;ority o consumers typically buy ewer soap
products at lower costs than in the developed world. However, consumers in emerging markets are
becoming increasingly value sensitive in their purchases.
!!
1his is in part due to growing middle classes
and increasing customer aspirations in many countries brought on by the globali.ation o media
messages.
Soap in Ind a i
Currently, HLL accounts or 60/ o all soap sales in India. Other large competitors include Nirma, with
JJ/ o the market, Godre; Soaps with 6.!/ and Johnson Johnson with J.6/.
!
Only / o all soaps
come rom the small-scale sector. 1he market is subdivided into several segments, including discount,
popular, premium and super premium, with the discount segment currently the largest segment in India.
The large unmet consumer need
Given these trends in the Indian soap market, HLL determined it needed to deliver more than beauty
beneits and economy. 1hereore, HLL ocused on three value propositions: economy, beauty and health.
Harpreet-Singh 1ibbs, Activation Manager or the Liebuoy brand, describes the connection: I you
establish why health is important or why soaps can contribute to reducing germ incidents and perhaps
save consumers{ medical bills through long-term associations, I think you have a winner right there.`
!6

Moreover, health is a meaningul message to consumers across socioeconomic spectrums. As described by
Yuri Jain rom HLL: What is hygiene It`s a large, unmet consumer need.`
!
Promoting this message


9 of 27
presents a large opportunity to help prevent diarrheal disease, but also leverage health messages as a means
o growing sales. Leveraging these new value-drivers, HLL sought opportunities to utili.e its products,
distribution network and marketing skills and position itsel as a local multinational` to increase its reach
and depth into the soap market in India.
Leverage Health Messages through the Global Public-Private Partnership
for Handwashing with Soap
HLL and a public/private partnership

HLL sought out initiatives that connect the use o soap to health and hygiene behaviors, including
handwashing. In all !000, as part o its research centered around handwash, HLL learned o a public-
private partnership (PPP) being developed between the World Bank, the Water and Sanitation program,
the London School o Hygiene and 1ropical Medicine, UNICFI, USAID and the Fnvironmental Health
Pro;ect. 1he PPP envisioned a large-scale handwashing intervention that used lessons learned rom pilot
pro;ects to promote the approach at a global level. 1hey entitled the initiative the Global Public-Private
Partnership or Handwashing with Soap (later to become Health in Your Hands-A Public Private
Partnership).
1he structure or the program was based upon the successul Central American Handwashing
Initiative, a public-private partnership that united our private corporations (La Popular, Colgate-
Palmolive, Unisola (Unilever) and Punto Ro;o), the USAID and UNICFI.
!8
Beore the program was
initaited, diarrheal disease caused J/ o under ive mortalities in Honduras, !!/ in Nicaragua, !0/
in Fl Salvador and !/ in Guatemala.` 1he Initiative developed hand wash education messages that
each private partner incorporated into its own marketing campaigns. 1he handwashing program
resulted in a !0/ increase in hygienic handwashing behavior in mothers, and an estimated J,!8,000
ewer days o diarrhea per year or children under ive years o age in the two lowest socioeconomic
groups.`
Although the Global Public-Private Partnership or Handwashing with Soap would be similar to
the Central American Handwashing Initiative, this campaign would be non-branded and open to all
interested parties. 1he PPP envisioned reaching ! million people, the entire population o Kerala, in
three years. 1his type o initiative was well aligned with HLL`s corporate goals o helping to improve
the health o a nation. HLL also learned that the Kerala state government (the southernmost state in
India) and the government o Ghana (two markets in which Unilever had a strong presence) were
interested in piloting the initiative. 1hereore HLL committed to the Kerala pilot, and as an early
player, was able to help shape the program design and recruit other industry participants.
!

Partners
In order to create a pilot o this scale, the PPP needed to leverage the speciic competencies o each partner
(see Iigure ! rom the Water and Sanitation Program). Iirst, the program needed scientiic credibility and
leadership in understanding the undamentals o handwash on health and hygiene. 1hereore, Dr. Valerie
Curtis rom the London School o Hygiene and 1ropical Medicine teamed with the Centers or Disease

Control and the Fnvironmental Health Pro;ect (USA) to provide credibility regarding the science-based
oundation o the program and the monitoring and evaluation unctions. 1his team would help determine
the eectiveness o the handwashing campaign in terms o changed behaviors and monetary costs and
would disseminate best practices and lessons learned to all participants. Second, the PPP needed epertise
in behavior change and marketing. HLL and the private sector members held vast amounts o consumer
behavior research as well as signiicant epertise in program design and communication methodologies in
both mass and direct contact media.
1hird, in order to reach the entire population with handwash communications, the PPP needed government
support to utili.e eisting inrastructure channels, such as schools and clinics, as a way to minimi.e costs and
maimi.e direct contacts. 1he government o Kerala viewed this initiative as a welcome alternative to costly
inrastructure pro;ects and oered ready access via the governmental machinery. Yuri Jain described the impact o
the PPP being able to work through government channels, .as a company--as Liebuoy or as HLL--we can only
do so much, we can only cover X number o villages. But in Kerala{ we have the entire government at our
disposal.We have J0,000 schools, !0,0000 social worker centers, 6,000 health centers. We have scale. You multiply
that by !0, you get India. When you multiply that by J0, you have the whole world. So it`s huge.`
0
Iinally, this
initiative required unding. 1he World Bank, in particular the Bank-Netherlands Water Partnership, U.S. Agency
or International Development, UNICFI and the Water and Sanitation Program were needed to provide resource
inputs and crat unding packages. 1hey also had a network o employees eperienced in administering large-scale
programs. 1he inal unding package was envisioned to leverage a combination o unding rom the development
agencies, the Kerala government and the private sector.

Figure 3: PPP Handwash Participants and Roles
51

Government
Health Infrastructure
Social Welfare Infrastructure
Educational Infrastructure
Local-level institutions
Pri vate Sector
Expertise in crafting
communication that triggers
behavior change
Expertise in program design
Expertise in optimizing resources
across channels and media
Scientific Community
Defining scope and main thrust
of the program
Evaluation of impact
Knowledge capture and
dissemination
Development Agencies
Harnessing financial
resources to drive the
program
Bring past experiences
to bear
Government
Health Infrastructure
Social Welfare Infrastructure
Educational Infrastructure
Local-level institutions
Pri vate Sector
Expertise in crafting
communication that triggers
behavior change
Expertise in program design
Expertise in optimizing resources
across channels and media
Scientific Community
Defining scope and main thrust
of the program
Evaluation of impact
Knowledge capture and
dissemination
Development Agencies
Harnessing financial
resources to drive the
program
Bring past experiences
to bear

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In return or these contributions, each player also epected certain outcomes. 1he health sector and
development agencies sought to leverage additional resources and epertise in designing and
implementing education campaigns. 1he Kerala government sought a less-costly solution over large
inrastructure pro;ects as a means o reducing diarrheal disease. It also could beneit rom the
communication epertise o the multinationals. And the private sector sought growth in the soap market,
increased market reach and visibility, and recognition as a corporate citi.en. With the players in line, the
PPP hired the Indian Market Research Bureau to conduct studies on handwashing habits in Kerala.
The Kera a program l
Kerala is a well-developed state in India. It has a population o ! million and a J00/ literacy rate.
Sanitation coverage in Kerala is J.!6/ in urban areas and !!/ in rural areas.
!
Despite higher levels o
education and sanitation access, research studies in Kerala ound that only !!/ o mothers used soap ater
using the toilet, !/ used soap ater cleaning up a child, JJ/ used soap beore eating and J0/ used soap
beore preparing ood.
!
1he Kerala results also showed those who did not wash with soap were ive times
more likely to have diarrhea than those who washed with soap.
Based on this data, the PPP designed a program that tried to link the handwash initiative to lie
changing events or times when new behaviors are most likely to be adopted (such as the arrival o a new
baby or vaccination).
!
1he complete program was to include our main pieces: a mass media campaign,
a direct contact campaign, evaluation and communications development. 1he irst piece was a direct
contact program or women when they visited health or social service institutions. 1he PPP also
designed a direct contact program in schools consisting o our health hygiene education days per year
and the creation o a mandatory lunchtime hand washing program or children ages 6 toJJ. Iinally, the
plan included a mass media campaign. 1he media campaign was to be generic with no company logos.
Calculations or Kerala suggested that through this program, 0/ o households would be
reached !! times a year via mass media, and !/ o households would be reached nine times a year
through the Direct Contact program.`

1he initial cost estimate or Kerala was a little over 3J0 million
spread over three years to cover the whole state. Per person costs were estimated to be 3.J0 per year.
6

Program administrators estimated that savings in healthcare costs would cover total program costs ater
two years.
1he Indian government agreed to und the mass media campaign, while the Kerala government
and UNICFI agreed to pay or the direct contact program.
1he World Health Organi.ation took

charge o the evaluation unction, and the private sector agreed to und the communications research
and message development. 1his allocation o costs among partners allowed each party to achieve a
larger ob;ective while only bearing a portion o the costs each year. 1he private sector committed to take
on one-third o total program costs. 1hese costs were urther divided among all participating companies
(primarily HLL, PG and Colgate-Palmolive). HLL agreed to bear the ma;ority o the private sector
costs, since it is the largest player in the market. However, this unding model may change. In total,
HLL planned to contribute almost 36,000 per year (J/ o total program costs) or 3.0! per head per
year.
8


12 of 27
Table 2: Percentage Contribution per Partner
59

PARTICIPANT PERCENTAGE OF COSTS
Government o India !/
Government o Kerala/Unice !/
World Health Organi.ation !/
Private Sector !0/
1otal J00/

With irm plans in place or global epansion, program design and implementation plans progressed until
spring !00!, when nonproit groups and political opponents started speaking out against the initiative in
Kerala. Fnvironmental and anti-globali.ation activist Dr. Vedana Shiva, Director o the Research
Ioundation or Science, 1echnology and Natural Resource Policy, wrote, Kerala has the highest access to
sae water, highest knowledge o prevention o diarrhea because o high emale literacy and local health
practices such as use o ;eera water and high use o luids during diarrhea. 1he World Bank pro;ect is an
insult to Kerala`s knowledge regarding health and hygiene. It is in act Kerala rom where cleanliness and
hygiene should be eported to the rest o the world. People o Kerala do not need a World Bank loan or
being taught cleanliness.`
60
Others accused the Kerala government o side-stepping the real problem: proper toilets and
sanitation acilities.
6J
1his opposition soon spread to politicians such as Mr. V. S. Achuthanandan, leader
o the opposition in the State Assembly, who began speaking out against the initiative.
6!
1he criticism
generated by adverse press began to hinder the PPP`s eorts. 1he World Bank asked the Government
o Kerala to respond to the criticism, but the state reused. Meanwhile, the state cabinet had not yet
approved the proposal, bringing the initiative to a standstill. Iinal negotiations or the eort are under
way, but as an alternative, the PPP has downsi.ed the initiative rom 3J0 million over three years to 3!
million or one year
6!
and begun to discuss options o moving the initiative to other states in India.
SQ

Despite these hold-ups, the PPP and HLL are having successes in other parts o the world. 1he
oicial launch o the Ghana campaign was in August !00! and work is well underway in Senegal, Peru,
China and Nepal. In each country, the program o work will include a similar direct contact/mass
media mi, but will be tailored to the individual country`s demographics and cultures.
HLL and the PPP
HLL saw the opportunity to beneit rom the PPP, whose aim was to to stimulate demand or soap
through education campaigns.` 1his initiative would leverage each partner`s capabilities and epertise in
order to serve the public good and epand the market or soap. However, the problems in Kerala
highlighted the compleities and possible downsides o working with numerous partners. Public and
international organi.ations, especially such modern-day political lightening rods as the World Bank, are
susceptible to public criticism. 1he process o building trust and accommodating multiple agendas also can
slow down pro;ect implementation.


13 of 27
Leveraging Health Messages for Lifebuoy Brand
At the same time HLL was trying to epand the soap market through the PPP, one o its oldest and most
successul soap products, Liebuoy, was losing topline growth at the rate o J/ to !0/ per year, starting
in J.
6
1he Liebuoy brand team was trying to determine appropriate net steps to revive the ailing
brand, and began to look toward handwash. As a means o countering sales declines, the Liebuoy brand
looked to HLL`s work on the PPP or new methods o attracting and winning customers.
The history of Lifebuoy
1he Lever Brothers Company created Liebuoy in J8! by miing residue rom the manuacturing
process or Sunlight detergent with red coloring and cresylic acid to create a strong soap. Irom the
beginning, HLL linked the bright red color and sanitary carbolic smell to healthy clean.` Beginning in
the J60s, the brand messages were reinorced through the use o a sports idiom` in Liebuoy`s
advertising. An active and energetic sports player needed a strong, eective soap to get truly clean. 1he
Liebuoy ;ingle played behind a team sports vignette, Liebuoy hai ;ahan tandurusti hai wahan` or
1here`s Liebuoy wherever there is health` HLL marketed the soap to the Indian male, J8-! years old,
with a medium household income o less than !000 rupees per month or approimately 3!. 1his person
was a semi-literate armer or construction laborer living in a town o J00,000 or less.
66
By J86, sales
eceeded J00,000 tons with 0/ o the brand`s volume coming rom rural areas. By J!, Liebuoy sales
surpassed sales o any other soap in India.
Beginning in the J80s, the cheaply priced beauty bar segment began to eat into Liebuoy proits.
As described by Harpreet-Singh 1ibbs, Activation Manager or the brand, We kept saying health,
health, health. And over time, health became synonymous with the base level o cleaning. Fvery soap
over time started speaking about basic health plus something. And the net result was that we were
thought to be at the base level o protection. So our health oering became less attractive.`
6
He went on
to eplain that the carbolic ragrance was also outdated, since younger generations and women showed
preerence or more loral-type ragrances. At the same time, the enormous brand equity associated
with the J0-year old Liebuoy name, especially in rural India, was something the company could not
aord to lose.
Brand revitalization on a health p atform l
1hereore, the Liebuoy team decided to revisit its mission. HLL Chairman Manvinder Singh Banga
advocated the creation o new opportunities or soap: I Liebuoy stands or improving health and is all
about germ kill, why it is only a soap, why not a shampoo, talcum powder and so on. 1hen you begin to
think about the ways in which the brand can interace and touch the consumer throughout the day; how
can that brand touch the consumer 1oday we`re only touching the consumer when he or she had a bath,
but when you begin to think about it in this ramework, you say where are the possible inroads o germs
into your day, and where can Liebuoy play a role So you get a whole set o growth opportunities that
emerge.`
68
With this direction, the marketing team created a new vision and mission or the brand,
relevant to all Indians:


14 of 27
Making a billion Indians eel sae and secure wherever they are by ocusing on their health and hygiene needs.

1he team decided to leverage the historical brand platorm o health by tying soap usage to the eradication
o amily health problems. HLL also linked the data demonstrating how soap can help eliminate common
health problems, such as diarrhea, to Liebuoy, inding that members o amilies oten eperience stomach
inections (diarrhea), eye inections and inected sores. As described by Yuri Jain, this results in a
signiicant loss o time and disposable income or an Indian amily: Fvery time a diarrheal episode takes
place, and or a poor amily this could be two to si times a year, there are treatment costs, there are
medicine costs, there are doctor costs. And so there is a spectrum o savings that is amassed.`
6
1he team
also changed the target audience rom men to entire amilies, in order to epand its audience or the health
message and to cater to the increased inluence o women on household purchases. HLL hoped this
revitali.ed health platorm would create relevance or the new Liebuoy target consumers and reassure
eisting customers that it was still health soap.
Product, cost and marketing strategy
1o address the health needs o one billion Indians, the team created a reormulation that was relevant,
accessible and aordable to the mass market. HLL replaced the carbolic smell with a more ragrant smell
to better appeal to amilies and women. 1he team also changed the manuacturing process rom hard`
soap production to milled soap production, a change that made Liebuoy longer-lasting and produced
more lather.
0
It`s new positioning was now targeted at the entire amily`s health.
In addition to these changes, HLL wanted to ensure it could dierentiate its product on a health
platorm. 1he team decided to add 1riclosan, a common anti-bacterial agent, to strengthen the
antibacterial power o the soap. In Furope and the U.S., 1riclosan has been the center o the anti-
bacterial controversy. Dr. Laura McMurray at 1uts University School o Medicine ound evidence that
bacteria could develop resistance to 1riclosan and propel the creation o more dangerous orms o
bacteria.
J
Despite these criticisms, HLL elt the use o an anti-bacterial agent was critical in producing
the health impact o eradicating and preventing germ regrowth. 1hey named the ingredient Active-B as
a cue to the consumer that Liebuoy provided additional health beneits over other soaps.
1he team also had to ensure Liebuoy was still aordable to its consumers. HLL Chairman
Manvinder Singh Banga eplained: Liebuoy is priced to be aordable to the masses.Very oten in
business you ind that people do cost-plus pricing. 1hey igure out what their cost is and then they add a
margin and igure that`s their selling price. What we have learned is that when you deal with mass
markets, you can`t work like that. You have to start by saying I`m going to oer this beneit, let`s say its
germ kill. Let`s say its Liebuoy. You have to work out what people are going to pay. 1hat`s my price.
Now what`s my target margin And that gives you your target cost-or a challenge cost. 1hen you have
to create a business model that delivers that challenge cost.`
!

1he Liebuoy team had invested rom its own proits to reormulate the product, and incurred
increased production costs rom the addition o the 1riclosin ingredient. 1hereore, the Liebuoy team
reconigured the product`s price and mi to meet the cost challenge and create a viable model to deliver
a low-cost mass-market soap. 1he team determined the product changes and etra germ-kill ingredient
did create additional value or money` and increased the price rom 8.0 to .0 rupees. Moreover, the


15 of 27
change rom a hard` soap production process to a milled soap process created a longer-lasting bar,
allowing the team to deliver the same value in a smaller si.e. 1he milled soap process was already
employed or production o most other HLL soap brands, so the learning curve or adopting the change
was minimal, and the changeover was implemented in less than one week.
!
Gurpreet Kohil, a senior
product development manager at HLL, recounts this change, We also engineered the new Liebuoy{
in such a way that it did not contribute a signiicant amount on costs either on us or consumers. We
changed the mi, the pack si.e mi, rom J0 grams to J! gram. But it lasts ;ust as long.`
!
1he team
also developed a 60-gram bar priced at !.0 rupees or consumers who were not able to aord the .0-
rupee bar.
1he team net developed a new series o commercials that linked Liebuoy to the prevention o
diarrhea, eye inections and inections o cuts and wounds. 1hese commercials would reach customers
through mass media channels. However, rural customers, who comprised 0/ o Liebuoy sales, oten
lived in areas without access to mass media. 1hereore, HLL needed a special method or reaching its
rural customer-base.
New Communication Channels: Multi-Contact Programs & Swasthya Chetna
Health messages and the rural consumer
In order to reach its rural consumers, HLL had to irst understand rural behaviors and preerences. HLL
researched hygiene and handwashing practices and the trigger points or using soap. HLL ound that
while attention to cleanliness has been increasing over time, most customers still associate cleanliness with
the absence o dirt as opposed to the eradication o bacteria. Ior eample, ocus group and observational
interview participants in rural areas oten described their hands as being dirty i they were sticky, oily,
discolored or smelled badly. However, i their hands looked and elt clean, then consumers considered
their hands to be clean. 1hrough this research, HLL determined the trigger or a consumer to wash his or
her hands was to remove unpleasant contaminants, not to kill germs that cause inections. 1hey also ound
this perception o visual clean is sae clean` leads to inrequent handwashing and limited use o soap.
Iocus group research showed similar results in that only ive o J! people washed their hands beore
eating, and only J0 o J8 washed their hands beore preparing ood.

Moreover, i consumers did wash
their hands, they most oten used water or a proy product or soap such as mud or ash. 1he same study
ound that ater handling cow dung, ive o seven interviewees rinsed their hands with water, one washed
with mud and one used soap. Consumers were not using soap because they did not believe they were dirty
or did not perceive that soap had added beneits over water or other materials. 1hereore, HLL decided it
would have to educate customers on germs and the consequences o germs on health in order to increase
soap usage as a means o deterring bacterial inection.
HLL teamed up with the rural India outreach arm o Ogilvy Mather to design a behavioral-
change education campaign ocused on uniting the health attributes o Liebuoy soap with health
messages o germ eradication. Iirst, HLL and Ogilvy Mather brainstormed a way to communicate
the negative eects o invisible` germs in an easily understandable and relevant message to the rural
consumer. 1hey also decided to highlight the unique attribute o Liebuoy soap, Active-B. HLL, and
Ogilvy Mather outlined the ollowing key messages:


16 of 27
Invisible germs are everywhere.
Germs cause diseases common to rural amilies including painul stomach, eye and skin inections.
Liebuoy soap with Active B can protect you rom germs.
Wash your hands with Liebuoy soap to prevent inection.

HLL net embarked on the creation o a comprehensive program aimed at reaching all members in a
rural village to create a sustained behavioral change. Harpreet-Singh 1ibbs eplains, I it`s going to
multiple contacts, it has to be low cost. It has to be a scalable and sustainable program. It has to be
interactive because you`re trying to get a behavioral change. And the cost o reaching out to villages in
rural India is very, very epensive. I can`t keep doing that or ages. So I need to ensure I get the
community to own up to this program and get this movement going or ages. And thereore community
participation is very important.`
6

HLL titled the program Liebuoy Swasthya Chetna or Liebuoy Glowing Health. HLL hoped to
change the trigger or washing hands rom visual clean is sae clean` to a social convention o requent
handwashing.
Program design: low cost, scalable and sustainable
Although the HLL and Ogilvy Mather team believed this program could eectively change rural
consumer behavior, it also was pro;ected to be costly. Initial plans called or our-person teams, two rom
HLL and two rom Olgilvy Mather, to travel in vans equipped with audiovisual equipment, lip charts,
interactive games and the germ glow demo. Costs were estimated to be approimately !,000 rupees or 38
per visit.
1hese initial epenses proved too costly or the program to scale as needed, especially given the
initiative was unded out o the Liebuoy marketing budget. 1hereore, the team created guiding premises
or the model: It needed to be low-cost, scalable and sustainable.
In order to maimi.e ependitures on the program to both HLL and communities, the team decided
to hire acilitators rom local regions who knew local dialects and could utili.e local orms o
transportation. In addition, they eliminated the use o costly audio visual-equipment and used only low-
cost props. 1hese measures helped reduce costs rom an estimated !,000 to 800 rupees per visit (rom
roughly 38 to 3J).
8

Moreover, because the program could not be rolled out across the entire country at once, HLL
systematically chose areas to target with the new program (see 1able !). In this way, HLL maimi.ed
its reach to new customers as well as reassured old customers that the new Liebuoy ormulation was
better than the old ormulation. Iirst, HLL looked at per capita consumption per state and chose states
that had a strong loyalty to the Liebuoy brand. HLL ound that Liebuoy had solid brand equity in
Maharasthra, Bihar, Uttar Pradesh, Karnataka, Jharkhand, Madhya Pradesh, West Bengal,
Chhatisgarh and Orissa. Net HLL reviewed district data to determine what states had high numbers
o inrequent soap users as well as states that contributed a high share to total Liebuoy sales. HLL then
cross-reerenced this data against media status (HLL wanted to leverage the direct media contact in
areas that were not accessible by mass communication means). Iinally HLL selected those villages with
middle schools so it could gain entre to the community via the local school system. Harpreet-Singh
1ibbs o HLL eplained the rationale behind this selection, Principal audiences are the middle school

children, ages -J!. 1hrough them, they are the carriers o change or us. 1hrough them we are
reaching out to the mothers, the elders and their parents, because the students{ are the ones who are the
most educated in the amily.`

Table 3: Selection Criteria for Villages for Swasthya Chetna Initiative
80
Process Sheet Filters Outputs Stated Objective
1. State Selection Lifebuoy rural share and contribution
to total LB shares
States with high share and
contribution were selected
Identify states to increase
Lifebuoy consumption
2. SCRs (districts)
Selection
% Infrequent soap users and soap
users' potential
SCRs with high infrequent soap users
and high soap contribution were
selected
Identify potential SCRs to
increase frequency of soap
usage
Lifebuoy share of SCRs and their
contribution to total LB sale High Lifebuoy shares were selected
Increase LB consumption
3. District Selection Lifebuoy share at district level Districts with more than 10% share
were selected
Increase LB consumption
Media status Media grey and dark (less than 50%
media reach) were selected
Reach those unreachable
through mass means
4. Village Selections 2-5K villages with middle schools Shortlisted 9000 villages with middle
schools
Reach target audience mother
and children

In the end, the Liebuoy 1eam selected J0,000 villages in nine states where HLL stood to gain the most
market share as well as educate the most needy communities. 1his targeted method o selecting villages
allowed the Liebuoy team to capitali.e on high-growth regions by providing a direct multiple-contact
program that could bring about a lie-long behavioral change, with hope o leading to a lie-long increase
in soap consumption.
1hrough Ogilvy Mather, HLL hired J! two-person teams to reach an estimated !0 million people
in the irst year alone. Due to the low cost and ease o implementation, they epanded the program to 0-
80 million people in the second year. 1he program currently employs !J0 teams and estimates the
program is reaching !0-!0/ o the rural population in targeted states. HLL also works to ensure its
products are distributed and available in these sites in order to ensure it beneits rom sales generated by
the program. Currently, HLL has reached out to almost !0/ o the population in these rural areas.
8J
Creating behavior change
1he development o Swasthya Chetna relied upon a structured communication process or creating
behavioral change:

17 of 27

Figure 4: Behavior Change Methodology
82

Exposure 1
INITIATIATION & INFORMATION
Exposure 2
LARGE SCALE PROPOGATION
Next Exposures
REINFORCEMENT
and
PREPARING FOR SUSTAINABILITY
Exposure 1
INITIATION & INFORMATION
Exposure 1
INITIATIATION & INFORMATION
Exposure 2
LARGE SCALE PROPOGATION
Next Exposures
REINFORCEMENT
and
PREPARING FOR SUSTAINABILITY
Exposure 1
INITIATION & INFORMATION

Fach eposure relies upon ive key communication tactics: education, involvement, shock, reiteration and
reward. 1hese elements were structured into each Liebuoy Swasthya Chetna visit.
`~ NW p ~ s~ m~
1he irst contact session targets school children ages to J! and their parents. 1o begin, the Liebuoy
Swasthya Chetna team presents an interactive lip chart story o Ra;u, a young schoolboy who uses soap to
stay healthy. 1hrough this presentation, the children learn about germs and how they cause stomach, eye
and wound inections. 1hey also learn how soap can reduce inection, and about the ive most important
times to use soap: ater going to the bathroom, beore eating, ater eating, to bathe and ater playing.
1hroughout the session, they also learn about the health beneits o Liebuoy soap. As eplained by
Harpreet-Singh 1ibbs, In the communication we are ;ust speaking about the category o soaps. We are
advocating soap usage, we`re not advocating Liebuoy. But the branding, the element that we put around
it, are all branded with Liebuoy. We actually categori.e the soaps as health soaps, because they work
better than regular soaps. Health soaps are the ones that actually have active ingredients in them that are
twice as eective in preventing germs.`
8!
1o impress upon the students the eectiveness o Liebuoy soap,
the acilitators introduce the Liebuoy Hero, an action character that eradicates germs. 1he acilitators
invite students to share what they have learned in ront o their classmates and present them with awards
o Liebuoy soap or correct answers.
Net, the acilitators demonstrate that invisible germs eist and can be eliminated through the use o
soap. 1o convince people that visual clean is NO1 sae clean,` the HLL team developed a glow germ
demonstration kit, comprised o a bottle o talcum powder, a black light and black viewing bo. 1he
talcum powder represents germs and how they are aected by soap. 1he talcum powder is applied to the
hands o two separate participants. One participant then washes her hands using water while the other
uses both soap and water. Once immersed in water, the talcum powder disappears, so both pairs o hands
appear to be visually clean. However, when both participants` hands are then placed in the black viewing
bo under the black light, the participant who only used water will have many spots o talcum powder
residue on her hands compared to the participant who used soap. 1his innovative demonstration proves to
the rural consumer that visual clean is NO1 sae clean,` but rather washing with soap helps eradicate
bacteria and germs.

18 of 27


19 of 27
Iollowing the glow germ demonstration, the children reiterate the importance o washing by
embarking on a parade around their village. Led by the HLL acilitators, the children chant Swastya
Chetna` and Liebuoy helps keeps germs away` to raise visibility o the initiative and reinorce prior
learnings. Iinally, the students are given health message stencils about the beneits o Liebuoy with which
to decorate their villages. 1he children stencil an estimated !00 messages around the village such as Ater
deecation, use Liebuoy` or Beore eating, use Liebuoy` or Have a bath with Liebuoy and keep germs
away.`
At the end o the day, the acilitators tell the students they will return in two to three months or a
community-owned program o skits and presentations by students. 1hey work with the local
schoolteacher to assign students to skits. 1his mandates that students work on health issues until the net
visit. It also gets parents ecited about the prospect o their children presenting in ront o the entire
village. Iinally, acilitators institute a wrapper-redemption program in which students who collect three,
our or ive Liebuoy wrappers beore the net visit receive pri.es such as small radios or games. 1he
wrapper redemption program is meant to increase soap usage in homes as well as beneit Liebuoy sales.
Ater school is out, the acilitators meet with the village elders to share similar health and hygiene
messages. Flders are oten inluential parties in guiding village behavior; thereore, education o these
individuals early in the process was determined to be a key part o the initiative gaining credibility.
`~ OW i s~ e~ a~
Day ! is aimed at children ages -J! and their parents and begins with a health camp. HLL brings a
village doctor to speak to participants about the importance o washing with soap. Moreover, the
acilitators measure students` height and weight to determine i they all within healthy norms. Because
more than !/ o Indian children under our suer rom malnutrition,
8!
HLL gives Healthy Child`
awards to those in the normal range as a method o helping parents understand healthy heights and
weights.
In the evening, the children present their health skits and poems to the community as a way to
reiterate messages and gain community involvement in the handwashing campaign. During this time,
HLL also communicates to the community the messages about germs and germ eradication, repeats the
glow germ demonstration and provides awards or the best presenters.
`~ PW a~~ j~~ t
1he third visit is geared toward young mothers and pregnant women who may not have been involved in
the community presentation put on by older school children. During this session, the acilitators present on
the dangers o diarrhea, how it is spread, how it can be prevented and how it can be treated. 1hey also
perorm preliminary health checks or the women.


20 of 27
`~ QW i~ i e~ `
On the ourth visit, the HLL acilitators announce the ormation o a health club that will include
activities around hygiene and keeping the village clean. 1he acilitators will return our to si more times
to run health club sessions to maintain active engagement in health and hygiene issues. 1he club is
anticipated to grow through a quarterly newsletter and the Liebuoy Club activity calendar.
HLL and Lifebuoy Swasthya Chetna
1hough the ecitement surrounding the program is great, the sales beneits are diicult to quantiy. In
large part, HLL has undertaken this initiative based upon aith that it would have long-term impacts on
India`s health and the market. Initial data, being collected almost two years ater the launch, is ;ust now
being reviewed to measure the return on investment and eectiveness o the pilot. Iortunately, the data
indicates the program has resulted in a sustained behavior change. 1o date, the wrapper redemption
program has had a !0/ response rate, but little other concrete inormation on monetary beneits to HLL
eists. Harpreet-Singh 1ibbs eplains, Liebuoy last year grew by !0/. It`s grown across states, across
regions. It`s very diicult to say what proportion o that can be attributed to this program. But in the
geography in which we have this program, Liebuoy has grown in sales.`
Given that initial indications are avorable, HLL also is planning to roll out the initiative in
Bangladesh this year with epectations to move to additional countries in the near uture. Moreover, the
Public Private Partnership Kerala initiative has borrowed the Swasthya Chetna ormat or its school visits
(although Kerala will only be instituting a three-contact program and will not be participating in the
wrapper-redemption program). 1he ability or other units o Unilever to leverage these indings
demonstrates the program is transerable and scalable to other markets, countries and venues.
Conclusion

1he promise o health is relevant universally.
Govind Ra;an, HLL
8
What does HLL gain from marketing public health messages about soap?
Dierentiating soap products on the platorm o health takes advantage o an opening in the competitive
landscape or soap. Providing aordable health soap to the poor achieves both product dierentiation or a
mass-market soap and taps into an opportunity or growth through increased usage. In India, soap is
perceived as a beauty product, rather than a preventive health measure. Also, many consumers believe a
visual clean is a sae clean,` and either don`t use soap to wash their hands, use soap inrequently or use
cheaper substitute products which they believe deliver the same beneits. HLL, through its innovative
communication campaigns, has been able to link the use o soap to a promise o health as a means o
creating behavioral change, and thus increasing sales o its low-cost, mass-market soap. Health is a


21 of 27
valuable commodity or the poor and to HLL. By associating Liebuoy`s increased usage with health,
HLL can build new habits involving its brand and build loyalty rom a group o customers new to the
category. A health beneit also creates a higher perceived value or money,` increasing a customer`s
willingness to pay. By raising consumers` level o understanding about illness prevention, HLL is
participating in a program that will have a meaningul impact on the Indian population`s well-being and
ulill its corporate purpose to raise the quality o lie.`
1his opportunity or brand dierentiation based on health does not ;ust eist in India or in the soap
market alone. A snapshot o the world`s population, increasingly divided between rich and poor
consumers, in developed and developing countries, shows that almost 0/ o the world`s anticipated
population growth (rom 6.! billion to .J billion in the net 0 years) will occur in developing markets.
86

1wenty percent alone will occur in India. PPPs are starting to work in these untapped markets, yet a huge
opportunity still eists or multi-nationals to spread health messages to other developing countries through
branded campaigns.
Moreover, wealthier populations also could beneit rom health and hygiene messages. Statistics rom
the World Bank ound that the when the Indian population was evenly divided into ive socioeconomic
quintiles, incidence o diarrheal disease was similar across the quintiles (see 1able !). 1his suggests a lack
o adequate sanitation acilities in poor and rural populations may not be the primary actor in the spread
o diarrheal disease. Handwash habits may be similar across populations, which suggests an opportunity to
reach out with direct contact campaigns to all socioeconomic populations in order to transorm handwash
behavior and greatly increase the requency o handwash and soap sales.

Table 4: Incidence of Diarrhea by Socio-Economic Quintiles
87
PREVALENCE OF DIARRHEA
(% ILL IN THE PRECEDING 2
WEEKS) POOREST SECOND MIDDLE FOURTH RICHEST
POPULATION
AVERAGE
1otal J0.! J0.! J0.! J0.J 8. .
Urban !. J!.0 .0 . 8.0
Rural J0.! J0.! J0.! J0.! J0.!

1his opportunity also may eist in developed nations. 1he b reported that in Fngland, ewer than
one-hal o British mothers washed their hands ater changing their children`s diapers.
88
By reinorcing
health messages to low-use populations, multinationals stand to beneit globally.
In addition to reaching low-use population, multinationals have an opportunity to provide solutions
or other health problems o the poor. 1he growing populations in developing countries are at risk rom
many o the same basic health issues stemming rom poverty and its accompaniments o poor sanitation
inrastructure, lack o access to health resources and inability to buy aordable preventive measures. By
creating aordable products that meet basic needs like preventing disease, multinationals could capitali.e
on large untapped markets. And according to HLL, the poor can be ;ust as discriminating as the rich
when it comes to brand consciousness. Keki Dadiseth o Hindustan Lever is quoted in a Iast Company
article, 'Fverybody wants brands. And there are a lot more poor people in the world than rich people. 1o
be a global business and to have a global market share, you have to participate in all segments.'
8
As HLL
builds brand equity around its ability to oer a better quality o lie through health, it will ind ways to
scale its lessons learned rom the soap market to other product oerings and markets around the world.


22 of 27
Methods for increasing market sales
1o date, HLL has helped create two initiatives to spread health and hygiene messages and epand the
soap market. Are there lessons that can be drawn rom the irst ew years o working in these dierent
models Are these programs scalable, low-cost and impactul

p~~W Both the PPP and Swasthya Chetna initiatives aim to reach large populations in short
timerames. 1he PPP is initially reaching a smaller number o people than the PPP; it aims to reach !
million people in its irst year o operation whereas Swasthya Chetna will reach 0-80 million people by
the end o this year (see
1able ).

Table 5: Comparison between the PPP and Swasthya Chetna
Health in Your Hands Lifebuoy Swasthya Chetna
HLL Visibility Not branded Branded
Scope Whole population, all segments Targeted population
Rural
Media dark
Strong Lifebuoy brand support
Low per capita soap consumption
Middle school for program access
Methods 4 contacts with school children 7 contacts with school children
Daily contact with school hand wash
i
1 contact with community
X contacts with social work and health care
system
1 contact with young mothers
Partners Local government health care system Local government school system
Local government school system
Developmental agencies
Other MNCs
Total Program Costs (In India)
2002 $ 3,493,333.33 $ 695,652.17
2003 (Revised due to Kerala slowdown) $ 2,000,000.00 $ 1,252,173.91
Program Costs per Head
2002 $ 0.120 $ 0.017
2003 $ 0.069 $ 0.018
HLL Total Program Costs (Revised) $ 444,444.44 $ 1,252,173.91
HLL Costs per Head (Revised) $ 0.015 $ 0.018
Scalability
2001
1
st
meeting
Preparation
2002 Preparation India (9 states) 40m in 10,000 villages
2003 Total: 49.2m
Ghana (20.2m)
Maybe Kerala (29m)
Preparation for Senegal, Peru, Nepal, China
Total: 100m
India (9 states) 70m in 18,000 villages
Preparation for Bangladesh
2004 Total:
Senegal 9.9m
Peru 26.7m
Nepal 23.9m
China 1.28b
Total:
India (11 states) 100m
Bangladesh (number TBD)
Each continent to learn cultural lessons and
spread to each region
Each HLL office to learn from best
practices and spread it to that region
Benefits Scales quickly
Can contribute money to those campaigns
where HLL is strongest
Slightly lower costs per head
Branded
Targeted to largest growth segment
Fewer partners, so can start-up more
quickly
Disadvantages Not using HLL name or brand names
Complications may occur due to many
partners (i.e., slower pace in Kerala)
Scaling out of brand profits, so
spreading to fewer countries
Slightly higher cost per head

23 of 27


24 of 27
Moreover, Swasthya Chetna has been able to design and implement its program more quickly-it already
operates in nine Indian states whereas the PPP is still in planning stages in Kerala. At the same time, the
network and resources o the PPP have allowed it to immediately epand globally with pro;ect planning
already underway in ive other nations, including China, the world`s most populous country. 1his is a
much greater scale than Swasthya Chetna`s planned epansion to Bangladesh. In addition, the PPP is
targeting all socioeconomic groups in the population, meaning that it could potentially have a greater
eect on overall soap market sales than the Swasthya Chetna campaign that is targeted to Liebuoy`s main
customer segment.

f~ _~ `~ ~ p~ p~W While scalability seems to be greater with the PPP, direct
beneits to corporate sales lie with Swasthya Chetna. 1hrough strategic selection o villages, Swasthya
Chetna has maimi.ed use o limited unds to reach targeted demographics to increase Liebuoy sales.
1his not only results in cost savings and eiciencies, but also may be more eective than an unbranded
campaign in creating behavior change. Research shows that use o a brand can help strengthen the health
messages being delivered by conveying quality, increasing consumer conidence and ensuring that
messages are delivered in a non-patroni.ing or demeaning tone.
0
By reaching out to poor populations
with strong brands and building habits involving their brands, HLL can create an unshakable hold on
consumers` wallets. Conversely, the PPP seeks overall market sales, which may or may not directly beneit
HLL.
At the same time, promotion o a branded product can leave the company open to criticism.
1hereore, it`s important the campaigns have a solid science-based oundation and are transparent. 1he
Liebuoy Swasthya Chetna campaign has done both. As eplained by Harpreet-Singh 1ibbs, We`re not
shying away rom the act that Liebuoy is going to beneit or we`re trying to get soap consumption up.
We`re being up-ront about it. But we`re also telling them that we`re doing something or the good o the
community and its there or you to see yoursel. And that`s the reason we`re actually going into schools
and schools are giving us permission to go in. Because they believe that what we`re saying is actually
making sense.I`m trying to develop the category because I believe soaps can reduce diarrheal incidents
by !0/. And i you believe its true, there`s not reason why you should dispute this program.`
J
Developing the expertise to sell health
HLL will undoubtedly continue to evaluate the advantages and disadvantages o both programs to
promote hygiene and soap usage as they move orward. 1o date, both the PPP and the branded direct
marketing campaign have proved to be innovative and viable models or epanding markets while
helping improve the quality o lie or the poor. Both programs combine partnerships (the PPP with
NGOs and governments and Swasthya Chetna with schools), health education campaigns and low-cost
products in order to successully translate improved hygiene behavior into increased sales in a scalable
way.
A central challenge in selling` health is the development o successul partnerships between private
business and public health oices and organi.ations. Both groups need to invest together to create the
market or a product. Private organi.ations contribute competencies around behavior change and delivery


25 of 27
o low-cost products, while public organi.ations provide access to consumers, in eect the channels to
deliver messages and etend product reach. Both groups are investing in and addressing a common
problem, but are evaluated on producing two dierent results: NGOs and governments are interested in
an increased quality o lie, while private businesses seek increased earnings.
1hese dierent motivations produce an inherent tension in the public-private partnership model.
1his tension is apparent in the status o the highly publici.ed Global Handwashing Initiative PPP, where
political roadblocks have slowed down the program and thus impacted HLL`s plans to deliver health
education and epand the soap market. Yet, these lessons have helped HLL to transer knowledge rom
Global Handwashing Initiative PPP to improve its own branded health education program, Swasthya
Chetna. Working with more locali.ed partners, in this case village schools, HLL is rapidly scaling its
program throughout rural India. By learning how to build partnerships and work in PPPs, even i toward
seemingly dierent ends, HLL has gained a competitive advantage. HLL can leverage its eperience
accessing public health channels to sell products as health solutions, while increasing its market share both
in India and abroad.
Endnotes

1
Curtis, Valerie. Health in Your Hands: Lessons from Building Public-Private Partnerships for Washing Hands with Soap,
October 2002, http://globalhandwashing.org/Publications/Lessons_learntPart1.htm, April 28, 2003.
!
Water and Sanitation Program. Hand Wash India presentation,` http://www.wsp.org/english/activities/handwashing/vbehal.pd, April
!8, !00!.
!
National Health Survey J8-J as cited in Water and Sanitation Program. Hand Wash India presentation,`
http://www.wsp.org/english/activities/handwashing/vbehal.pd, April !8, !00!.
!
Curtis, Valerie. Op. Cit.
Water and Sanitation Program. Op Cit.

6
Gwatkin, Davidson R. et al. Socio-Fconomic Dierence in Health, Nutrition, and Population in India.` HNP/Poverty 1hematic
Group o the World Bank, May !000.
8
Water and Sanitation Program. Op. Cit.

J0
Hand Water and Sanitation Program. Op. Cit. .
JJ
Curtis, Valerie. Op. Cit..
J!
Interview with Yuri Jain, HLL, March !6, !00!.
J!
Curtis, Valerie. Op. Cit..
J!
Gwatkin, Davidson R. et al. p ~I ~ ~ f~K HNP/Poverty 1hematic Group o the
World Bank. !000.
J
J6
1he World Bank. f~W ^ ~ `~ o m. Washington, D.C., June J
J
1his World Bank study deines someone living below the poverty line as anyone with a per capita monthly ependiture lower than !
rupees (rural) and rupees (urban) at J!-! all-India prices. 1his corresponds to a per capita ependiture suicient to provide basic
non-ood items and a caloric intake o !!00 calories per day or urban Indians and !J00 calories per day or urban Indians.
J8
WHO/UNICFI Joint Monitoring Porgramme or Water Supply and Sanitation Coverage Fstimates J80-!000. Access to Improved
Sanitation: India.` September !00J.
J
United Nations Population Division. World Population Prospects: 1he !00! Revision Population database.` !00!.
http://www.un.org/popin/data.html April !8, !00!.
!0
WHO/UNICFI Joint Monitoring Porgramme or Water Supply and Sanitation Coverage Fstimates J80-!000. Access to Improved
Sanitation: India.` September !00J.
!J
Water and Sanitation Program. Op.Cit.
!!
WHO, J8 as cited in Handwash India presentation, http://www.wsp.org/english/activities/handwashing/vbehal.pd, April !8, !00!.
!!
!!
!
How to Save Jm Children a Year. 1he b. July 6, !00!.


26 of 27

!6
!
Ibid.
!8
Ibid.
!
!0
Kolanad, Gitan;ali. ` > f~, Graphic Arts Center Publishing Agency. !00J.
!J
!!
Gwatkin, Davidson R. et al. Socioeconomic Dierence in Health, Nutrition, and Population in India.` HNP/Poverty 1hematic Group
o the World Bank, May !000.
!!
!!
HLL, Annual Report, !00J. All igures have been converted rom rupees to U.S. dollars based upon an echange rate where 3J is equal
to !6 rupees.
!
!6
HLL, Annual Report, !00!.
!
HLL, Mumbai City -HLL.` Powerpoint Presentation. Not dated.
!8
HLL, Annual Report, !00J. All igures have been converted rom rupees to U.S. dollars based upon an echange rate where 3J is equal
to !6 rupees.
!
HLL, Annual Report, !00J.
!0
1he London School o Hygiene and 1ropical Medicine, 1he Global Market or Soaps, A Market Research Report or the Public-
Private Partnership on Handwashing with Soap,` Not dated. http://www.wsp.org/english/activities/handwashing/globalmarketsoap.pd
J0 December !00!.
!J
Ibid., J!.
!!
Ibid., J.
!!
HLL. A Proile.` Not dated.
!!
Interview with CR Viney, Lowe Advertising, March !!, !00!.
!
India InoLine, http://www.indiainoline.com/comp/vade/mr0!.html, March !0, !00!.
!6
Interview with Harpreet-Singh 1ibbs, HLL, March !6, !00!.
!
!8
Public-Private Partnerships: Mobilizing Resources to Achieve Public Health Goals the Central American Handwashing Initiative
Points the Way, http://globalhandwashing.org/Publications/BASICS.htm#private, April 28, 2003.
!
0
Interview with Yuri Jain, HLL, !6 March !00!.
J
Clean Hands, Clean State. Kerala handwash with soap` program.` January !00!.
http://www.wsp.org/english/activities/handwashing/kerala.pd, April !8, !00!.
!
PPP or Handwashing Initiative-Kerala,` http://www.worldbank.org/watsan/orum!00J/!00J_kerala_ppt.pd, June !, !00!.

!
Clean Hands, Clean State. Kerala handwash with soap` program.` January !00!.
http://www.wsp.org/english/activities/handwashing/kerala.pd, April !8, !00!.

6
Ibid.

8
1his igure is calculated by dividing total pro;ect costs o 3J0.!8m by three years to get an annual cost per year o 3!.!m. 1his igure is
then divided by three to ascertain private sector costs. 1he resulting 3J.J6m is then multiplied by !/! to get an estimated annual cost per
year or HLL o 36,000. 1he original 3J0.!8m igure is rom the Handwash India presentation,
http://www.wsp.org/english/activities/handwashing/vbehal.pd, April !8, !00!.

60
Shiva, Vandana. 'Saving lives or destroying lives World Bank sells synthetic soap cleanliness to Kerala: the land o health and
hygiene' ^_f~, September !!, !00!.
6J
Devinder Sharma. So(a)ps or Unilever.` f. October !0, !00!, http://www.indeconomist.com/!0J00!_health.html, April !!,
!00!.
6!
Kurian, Vinson. Hand wash' campaign in Kerala raises a stink.` _ i. November 6, !00!,
http://www.blonnet.com/!00!/JJ/06/stories/!00!JJ060JJ00.htm, April !!, !00!.
6!
London School o 1ropical Medicine and Hygiene. Health in Your Hands PPP-HW. LSH1M Progress Report. August !6, !00!-June
!0, !00!.` http://www.globalhandwashing.org/Global/!0activities/Attachments/lshtmreportyear!.pd J0 December !00!.
6!
Meeting on Public-Private Partnership Initiative to Promote Handwashing with Soap
November !-!6, !00!,` Washington DC, global handwashing.org/Gloal/!0activities/Attachments/
PPPHW/!0Meeting/!0Report/!0JJ-!,!6-0!.doc, April !8, !00!.
6
Interview with Aasi Maalbari, March !6, !00!.


27 of 27

66
HLL. Brand Iact Book: Liebuoy.` Presentation. Not Dated.
6
68
Interview with HLL Chairman Manvinder Singh Banga, HLL, March !, !00!.
6
0
Interview with Gurpreet Kohil, HLL, March !, !00!.
J
Io, Maggie. Common disinectant could breed superbugs.` August J, J8, http://www.nutriteam.com/triclo.htm, April !!, !00!.
!
Interview with HLL Chairman Manvinder Singh Banga, HLL, March !, !00!.
!
Interview with A;ai Mittal, HLL, March !, !00!.
!
Interview with Gurpreet Kohil, HLL, March !, !00!.
Probe Quality Research. Pro;ect Glove: A 1riggers and Barriers study on Handwash Habits.` Prepared or HLL. Not Dated.
6

8
Ibid.
80
HLL, Rural Prioriti.ation Strategy-!-0!.` Presentation. Iebruary !00!.
8J
8!
HLL, Liebuoy Swasthya Chetna: Press Conerence,' May !00!.
8!
8!
8!
Ibid.
8
Interview with Govind Ra;an, HLL, March !, !00!.
86
Population Reerence Bureau. PRB !00! World Population Data Sheet-!00!`
http://www.prb.org/pd/WorldPopulationDS0!_Fng.pd , April !8, !00!.
8
88
How to Save Jm Children a Year.` 1he b. July 6, !00!.
8
Balu, Rekha. Strategic Innovation: Hindustan Lever Ltd.` Iast Company. June !00J. p. J!0,
http://www.astcompany.com/maga.ine/!/hindustan.html, April !8, !00!.
0
Harvey, P. i ~W e ~ ~ ~ ~ KK Westport: Greenwood
Publishing Group. J.
J

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Rel eased August 31, 2003

1he World Health Organi.ation took

Water and Sanitation Program. Op Cit.

Curtis, Valerie. Op. Cit.

Curtis, Valerie. Op. Cit.

Water and Sanitation Program. Op. Cit.

Water and Sanitation Program. Op. Cit.

Water and Sanitation Program. Op. Cit.

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