Brand Mgmt. Assignment

Lux Case Study

Submitted By:

Rupali Singh PGFA1543

Submitted To:

Prof. Rajesh Elhance

Ques 1: Lux has traditionally positioned the brand by influencing consumer beliefs and attitudes by highlighting on the theme of “beauty soaps of film stars”. In your opinion, why has HUL adopted this approach instead of highlighting certain specific brand features or benefits?

Ans 1: HUL has always recognized the value of using spokespeople who are admired by the class as well as the mass; and so has always associated the advertisements for LUX with celebrities belonging to the entertainment industry. It is a rough estimate that 20% of all TV commercials feature celebrities, and advertisers pay hundreds of Crores of rupees for their services.

Normally there lies immense considerations for the company before it finally decides to endorse its products by celebrities – these are dangers of overshadowing the product and being overexposed, the target audience’s receptivity, and other potential risks to the advertiser due to sudden image crisis of the celebrity endorser.

HUL has successfully managed over the years to avert these risks by careful selection of celebrities, who mostly belonged to the top performing class in the entertainment industry. For example, Leela Chitnis, Hema Malini, Sridevi, Juhi, Kareena, Aishwarya and even Sharukh Khan has endorsed the brand and has always bought a star power and presence to the advertising that attracted attention and made it memorable, yet has never overshadowed the brand they were promoting.

The advertisements created a strong feeling among consumers that using the soap they could probably look different from the mass. These celebrities had a huge fan following and that proved highly beneficial for the company to break through the clutter easily.

One of the most important considerations in choosing a celebrity endorser is how well the individual matches with and is received by the advertiser’s target audience. LUX had always chosen celebrities who can be well associated with the product and thereby boost its sales.

Highlighting on the theme “Beauty soap of film stars”, LUX wanted to develop a strong connection with the consumers by influencing on their belief and attitude that the soap has certain features and benefits which has influenced the industry leaders to endorse their brand.

The soap must have a better quality or else celebrities would not have been interested in endorsing the brand – they would obviously not like to hamper their own image by associating with a wrong brand only for monetary benefits. The message was clear and transparent – highlighting only on features or benefits would make the advertisement look dull and consumers would easily switch over to other brands.

A celebrity’s behavior may pose a risk to the company. HUL could manage to avert these risks easily by their careful selection of celebrities – the ones with more power in their performance rather than seeking attention on scandals. Also the personality of the celebrity matched the product and company’s image. The advertising was focused on emotional appeal more than the rational appeal. Thus LUX could position itself successfully in the heart of the consumers rather than on their minds

Bringing out limited editions of the product has been a popular way of attracting attention and promoting sales and when you tell people that a product/service can help them, they may or may not believe you. After all, you have a vested interest in selling your services. But when celebrities say that the particular product/service has helped them, and it could help others, people tend to listen — and believe. After all, most people assume "he wouldn't say it if it weren't true."When you get a celebrity to endorse your company or sign a licensing agreement, you benefit from customers' awareness of the property, [which] could include the perception of quality, educational value or a certain image."

Celebrity endorsement helped the lux soap in differentiating the brand from others consumers remember it by celebrity faces and gives it a different opinion.

Ques 2: If you are to expand the base of the market by suitably changing the existing consumers’ beliefs and attitudes what kind of strategies will you adopt, e.g. changing beliefs about the brand? You may add some new attributes; choose a new theme of brand positioning etc.

Ans 2: The Lux soap can be defined to customer for a UV rays protection or Skin Diseases protection soap which will create new belief in consumers that this brand is changing according to environment and for consumer protection. For this purpose we can:

The second characteristic that we have to change its colour from red and pink to some yellow or green as it looks kind of medicated.

The third is that we can add ‘clouding’ effect that appears when it is added to water so that it looks more safe and medicinal.

The fourth and most important is the absolute trust that we have to build by showing facts about the skin diseases that are spreading nowadays and how the soap can reduce this.

The soap will need to change the packaging so that is looks more medicinal and protective for skin like showing mild and beautiful skin protected by soap.

Also it can enter into lux for natural Indian Beauty- This will be done by showcasing the common girls and stating that Indian women are the most beautiful in the world .Positioning the brand for every Indian and not for affluent.

Ques 3: As a brand manager of Lux, given its long established brand equity, you want to enter into new product categories. What kind of personal use product categories will you venture into?

Ans 3: Lux is famous for fragrances so they can also enter into:

Perfumes Men Soap Men perfumes and Deodorants

Hair oil with a unique fragrance etc.With key categories such as soaps, shampoos fast reaching maturity in terms of penetration, HUL can also enter into these personal use product categories.

Ques 4: What will be the nature of your communication to differentiate the brand from other ‘me-too’ or similar quality brands of toilet soaps?

Ans 4:

Educate the customer about their product with product differentiation soaps.

Different line of soaps under lux brand to cater to different customer needs. Made from natural extracts (Combination of different fruits) Neem and Aloe vera (Herbal and medicated soaps) Made from flower extracts. Sandalwood and Rose water (Natural glowing skin from ages) Cream and milk for smooth body. With glycerine and lemon extracts to fight with pears. Lux germ protection bar.

Brand will grow to cater different requirements of the people, so they will not go to another brand as their skin needs will be addressed by lux.

Aware about lux as if it is best for them-

Lux- Living up to Expectations Aggressive advertising. Skincare at its best-Lux LUX- Learn, use and experience.

Strategy to educate customer, make her or him buy and let them feel that they have associated with a long life experience.