Balberan, Jan Maxin R. ITETHIC March 10, 2008
BS – IM O0A Mr. Paul Pajo
Hindustan Lever Limited Case Study Guide Questions
- What is the innovation that HLL introduced in the area of diarrheal disease prevention?
Hindustan Lever Limited (HLL), the Indian subsidiary of Unilever, in combat against health issues of diarrhea through innovative methods of marketing a common consumer good – the soap.
- Why is handwashing an excellent preventive measure against diarrheal disease?
Research on preventive behaviors for diarrheal diseases shows that washing hands with soap could significantly reduce incidences of infection. Changing behavior to increase the frequency of hand washing could therefore greatly reduce the incidence of diarrheal disease. Washing hands also could be effective in reducing the spread of ARIs.
- Why is an MNC in the best position to influence behavioral change in combating diarrheal disease?
- MNC have the following unique capabilities that could take the challenge of combating diarrheal disease:
· Deep experience in conducting and analyzing consumer
· Marketing expertise and direct contact programs
· Strong band as routes for behavioral change
· Experience in adapting their product
· Vast distribution network
· Experience sharing and best practices
· Careful evaluation of investment in projects
· Global reach for other customers
- According to Yuri Jain of HLL, what is the connection between diarrheal disease prevention and HLL products?
Yuri Jain at HLL explains, “When you ask yourself how you break the transmission of disease with hands, you come up with hand washing with soap. And that clearly suggests there is great business imperative for us to try… to make that happen because we are the largest manufacturer of soap. If people start washing their hands with soap more often, the consumption will go up and there is an impact on market size.”
- According to Harpreet Singh Tibb, what is the connection for HLL between economy, beauty and health?
Harpreet Singh Tibb, Activation Manager for the Lifebouy brand, describes the connection: “if 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.”
- What was the impact of the Central American Hand washing Initiative to its beneficiaries?
The hand washing program resulted in a “30% increase in hygienic hand washing behavior in mothers, and an estimated, 287,000 fewer days of diarrhea per year for children under five years of age in the two lowest socioeconomic groups.”
- What was the reason for Dr. Vedana Shiva's opposition to the PPP? Is it justified?
Environmental and ant globalization activist Dr. Vedana Shiva, wrote:”Kerala has the highest access to safe water, highest knowledge of prevention of diarrhea because of high female literacy and local health practices such as use of jeera water and high use of fluids during diarrhea. The World Bank project is an insult to Kerala’s knowledge regarding health and hygiene. It is in fact Kerala from where cleanliness and hygiene should be exported to the rest of the world. People of Kerala do not need a World Bank loan for being taught cleanliness.”
Sometimes what we know is different from what is right and should be done. What Dr. Shiva said is true, the project would be an insult to the Kerala’s knowledge but being apathetic is far worst since the project should correct the people’s wrong belief and should be lead on what is true and right.
- If you were in a position to decide how to go ahead with PPP while knowing the opposition how would you go about it?
Implementing such would be risky since this go beyond the people’s habit. One best implementation approach is first educating the market about the product. Second is to give positive result of PPP and lastly to make the people come to a realization for an alternative or a better way.
- How did Lifebuoy re-brand itself? Do you agree with HLL Chairman Marvinder Sing Banga's decision? Why?
Since Lifebuoy is the base line of health protection, more competitors claim the same and lessen the gap of competition to Lifebuoy. The new brand has added new feature to the product such as floral-type fragrances. They also produce a campaign that will help touch the consumer in their day to day life and solve their family health problems.
What Marvinder did is to re launch their old product yet now with a new branding. Since the market still adores the product, it is the best way to inform the old consumer and to advocate potential consumer to buy the product. The campaign is based on reality that gives plus point to the product’s features since most campaigns are exaggerated that s near to fiction.
- What is Chairman Banga's approach to costing Lifebuoy? Do you agree with this approach?
Chairman Banga said that the product is priced especially for market. Since traditional costing would not do, you have to work out what people are going to pay for the product. That gives you target cost or a challenge cost. Then you have to create a business model that delivers that challenge cost. Since you are servicing the BOP this is the right approach because people would always invest on something that will work or beneficial for them or in other words, worth investing for.
- What is the key to sustained community behavioral change according to Harpreet Singh Tibb?
- Multiple contacts
- Low-cost
- Scalable and sustainable
- Interactive
- Participation of the community
- The Lifebuoy Swasthya Cheetna program decided to go through the local school system? Would this approach work in the Philippines?
The team presented an interactive flip chart story of Raju, a young schoolboy who uses soap to stay healthy. In the Philippines , a lot of schools are doing not this kind of marketing, They even go for a puppet show where on this age bracket, the target market would greatly appreciate it rather than seminar advocacy approach.
- What is the Lifebuoy Swasthya Cheetna's process for creating behavioral change?
- Initiation and Information
- Large- scale Propagation
- Reinforcement and preparing for sustainability
- Each exposure in the behavioral change process involved 5 key communication tactics? Can you add or subtract to these tactics? Would these tactics work in the Philippines?
Each exposure relies on five key communication tactics: education, involvement, shock, reiteration, and reward. The five key is sufficient to make the process work, there is no need for adding or subtracting process since all key have their own pace that is needed for behavioral change.
This tactic will work but it would be hard to implement such especially for involvement where most people only render time to something that they are really interested with.
- Explain the germ-glow demonstration. Do you think it was effective? Are there any alternatives?
Germ-glow demonstrate how to convince the people that “visual cleans in NOT safe clean”. Two hands are applied with a glow germ powder, which glows under the black light, but washed on a distinct manner. First hand is washed with soap while the other is only washed by water. The result shows that washing with only water leaves numerous residue of germ powder. This proves the earlier statement.
It is definitely effective. Even in the Philippines, a lot of advertisers use the same method. It clearly proves the wrong notion of people about visual cleanliness.
- How did you think the Swasthya Cheetna program impact HLL? Was it a success?
The market is excited and the sales of HLL have increased. The program resulted in a sustained behavior change. With these facts about the program, it is therefore successful since they meet their goal to change.
- How can wealthier Indian populations benefit from the health and hygiene messages?
Health involves everyone. It does not defy who is rich or poor but who is healthier and hygienic. Bacteria can attack everyone and therefore this does not escape the potential market of wealthier Indians. They should be more aggressive in their health and hygiene since they are vain. The consumption of soap would be higher.
- Is the PPP scalable? What about the Swatshya Cheetna program?
Both the PPP and Swasthya Cheetna initiatives aim to reach large populations in short time frames. The PPP is initially teaching a smaller number than Swastya Cheetna. Moreover, Swastya Cheetna has been able to design and implement its program more quickly. At the same time, the network and resources of the PPP have allowed it to immediately expand globally with project planning already underway in five other nations.
- Yuri Jain claims that PPP has scale. Do you agree with him?
Yes they can sustain the scale of their market since they are back up by the government and some other companies.
- Why do you think PPP was slowed down while the Swathsya Cheetna program pushed through?
Although scalability seems to be greater with the PPP, direct benefit to corporate sales lie with Swasthya Cheetna. Though strategic selection of villages, Swasthya Cheetna has maximized use of limited funds to reach targeted demographics to increase Lifebuoy sales.
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