PLC OF LUX
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Transcript of PLC OF LUX
Production & material managementLife cycle of Lux soap
A new product progresses through a sequence of stages from introduction togrowth, maturity, and decline. This sequence is known as the product lifecycle and is associated with changes in the marketing situation, thus impactingthe marketing strategy and the marketing mix.
The product revenue and profits can be plotted as a function of the life-cyclestages as shown in the graph below:
Product Life Cycle Diagram
Introduction StageIn the introduction stage, the firm seeks to build product awareness anddevelop a market for the product. The impact on the marketing mix is asfollows:
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Production & material managementLife cycle of Lux soap
Product branding and quality level is established, and intellectualproperty protection such as patents and trademarks are obtained.
Pricing may be low penetration pricing to build market share rapidly, orhigh skim pricing to recover development costs.
Distribution is selective until consumers show acceptance of theproduct.
Promotion is aimed at innovators and early adopters. Marketingcommunications seeks to build product awareness and to educatepotential consumers about the product.
Growth Stage
In the growth stage, the firm seeks to build brand preference and increasemarket share.
Product quality is maintained and additional features and supportservices may be added.
Pricing is maintained as the firm enjoys increasing demand with littlecompetition.
Distribution channels are added as demand increases and customersaccept the product.
Promotion is aimed at a broader audience.
Maturity StageAt maturity, the strong growth in sales diminishes. Competition may appearwith similar products. The primary objective at this point is to defend marketshare while maximizing profit.
Product features may be enhanced to differentiate the product from thatof competitors.
Pricing may be lower because of the new competition.
Distribution becomes more intensive and incentives may be offered toencourage preference over competing products.
Promotion emphasizes product differentiation.
Decline Stage
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Production & material managementLife cycle of Lux soap
As sales decline, the firm has several options:
Maintain the product, possibly rejuvenating it by adding new featuresand finding new uses.
Harvest the product - reduce costs and continue to offer it, possibly to aloyal niche segment.
Discontinue the product, liquidating remaining inventory or selling it toanother firm that is willing to continue the product.
The marketing mix decisions in the decline phase will depend on the selectedstrategy. For example, the product may be changed if it is being rejuvenated, orleft unchanged if it is being harvested or liquidated. The price may bemaintained if the product is harvested, or reduced drastically if liquidated.
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Production & material managementLife cycle of Lux soap
Lux soap was first launched in the UK in 1899 as aflaked version of Sunlight soap. Subsequently it was
launched in the US in 1916, and marketed as a laundry soap targetedspecifically at 'delicates'. Lever Brothers encouraged women to home laundertheir clothes without fear of satins and silks being turned yellow by harsh lyesthat were often used in soaps at the time. The flake-type soap allowed themanufacturer some leeway from lye because it did not need to be shaped intotraditional cake-shaped loaves as other soaps were. The result was a gentlersoap that dissolved more readily and was advertised as suitable for homelaundry use.Lux is currently a product of Unilever. The name "Lux" was chosen as theLatin word for "light" and because it was suggestive of "luxury."Lux toilet soap was introduced as a bathroom soap in the US in 1925, and inthe UK in 1928 as a brand extension of Lux soap flakes. Subsequently Luxsoap has been marketed in several forms, including handwash, shower gel andcream bath soap.Lux soap was launched inIndia in 1929. The very first advertisement in 1929featured Leela Chitnis as its brand ambassador. It was branded in India as "thebeauty soap of film stars'.
As of June 2009 Lux is sold in over 100 countries .
From the 1930s right through to the 1970s, Lux soapcolours and packaging were altered several times to
reflect fashion trends. In 1958 five colours made up therange: pink, white, blue, green and yellow. People enjoyed matchingtheir soap with their bathroom colours.
In the early 1990s, Lux responded to the growing trend away fromtraditional soap bars by launching its own range of shower gels, liquid
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Production & material managementLife cycle of Lux soap
soaps and moisturising bars. Lux beauty facial wash, Lux beauty bathand Lux beauty shower were launched in 1992.
In 2004, the entire Lux range was relaunched in the UK & Ireland toinclude five shower gels, three bath products and two new soap bars.2005 saw the launch of three exciting new variants with dreamy namessuch as “Wine & Roses” bath cream, “Glowing Touch” and “SparklingMorning” shower gels.
Did you know?
Since the 1930s, over 400 of the world’s most stunning and sensuouswomen have been proudly associated with Lux advertisements. MarilynMonroe, Brigitte Bardot, Demi Moore and, more recently, our ownCatherine Zeta-Jones, have all been part of the Lux glamour story.
The name Lux means ‘light’ in Latin, however the name was chosen forits play on the word ‘luxury’.
Lux soap was first launched in the UK in 1899 as a flaked version of Sunlightsoap.Subsequently it was launched in the US in 1916, and marketed as laundrysoap targeted specifically at 'delicates'. Lever Brothers encouraged women tohome launder their clothes without fear of satins and silks being turned yellowby harsh lyes that were often used in soaps at the time. The flake-type soapallowed the manufacturer some leeway from lye because it did not need to beshaped into traditional cake-shaped loaves as other soaps were. The result wasa gentler soap that dissolved more readily and was advertised as suitable forhome laundry use Lux is currently a product of Unilever. The name "Lux" waschosen as the Latin word for "light" and because it was suggestive of "luxury."Lux soap was introduced as bathroom soap in the US in 1925 and in the UK in1928 as a brand extension of Lux soap flakes. Subsequently Lux soap has beenmarketed in several forms, including hand wash, shower gel and cream bathsoap.Lux soap was launched in India in 1929. The very first advertisement in 1929featured Leela Chitnis as its brand ambassador. It was branded in India as "thebeauty soap of film stars'.
As of June 2009 Lux is sold in over 100 countries
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Production & material managementLife cycle of Lux soap
Lux launched the world’s first mass-market beauty soap in the US in 1924 &had been
launched in India in 1929.•At that time there was only one competitor of Lux, which was from its ownbrand “LIFEBUOY”.
•In the initial stages Lux was introduced in the major cities of INDIA likeCalcutta, Mumbai etc.
•MARKETING OBJETIVES - was to create the product awareness and toattract the
customers towards the product.
•The Lux MARKETING STRATEGIES in the initial stages :
•Product = They offer only on product in the market. They did not come upwith the
differentiated product.•Price =In the initial stages of the product, they offer the relatively higher pricethan their competitor (LIFEBUOY). Because, they want to recover their initialcost of making the product.
Advertising =In the initial stages, they allocate more advertising budgetSo that more and more customers could be attracted towards the product.
In ads they targeted the early adopters, who were readiest to buy the product.The first ambassador, Leela Chitnis.
Distribution =was selective and only covers the major cities of INDIAto get recognition in those cities. Their distribution channel was through : Manufacturer Wholesaler &Retailer
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Production & material managementLife cycle of Lux soap
In the growth stage, their sales rapidly started rising.
•They have expanded their market to the other cities of INDIA.•MARKETING OBJECTIVES = The marketing objectives of the Lux wereto expand their market to the other cities of INDIA.
•Another objective was to maximize more market share.
•In the growth stage, company had the following MARKETING
STRATEGIES :
•Product = In the growth stage, the company had offered the same product in
the market.•Price = In this stage, the company had changed their price to some extentbecause of maximizing the market share. ( Slightly cut down the prices )
•Advertising = In the growth stage, they had increased their advertising budgetas in the initial stages because of attracting the new customers or to retain theexisting customers.
Sharmila Tagore, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit,Sridevi
• Distribution = In this stage, company had expanded their market to the othercities of INDIA. Their distribution channel was the same as in the initial stagesof the product.
• Promotion = In the growth stage, the company had also used the differentproportioning strategies to attract the new and the existing customers
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Production & material managementLife cycle of Lux soap
They modified the product by adding some changes in the product.
•In this stage, few competitors enter into the market like ( CINTHOL,FAIRGLOW, SANTOOR, CHANDRIKA, FIAMA DI WILLS and VIVEL ).
•The company has expanded their market to almost all the cities of INDIA.
•MARKETING OBJECTIVES = The marketing objective of Lux is tomaximize more profit while defending the market share. And to expand themarket to all the cities of INDIA.
•MARKETING STRATEGIES In this stage are based on:•Product= The Lux has made the modification in the product by introducing:Lux Almond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Sandalwood, LuxRose,
Lux International, Lux Chocolate, Lux Aromatic Extracts, Lux Oil andHoney.etc
•Price = The Lux products are now available at higher prices in the market, thereason behind is that the company’s marketing objectives is to maximize moreprofit.
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Production & material managementLife cycle of Lux soap
•Distribution = Now Lux products are available in almost all the cities ofINDIA. Their distribution channel is same as in the initial stage.
• Advertising = In this stage Lux advertising has been reduced to some extentbecause of the more brand awareness in the minds of customers.Recently, they have shown Aishwarya Rai , Kareena kapoor & Shah Rukhkhan.
• PROMOTIONAL OFFERS :---- Like buy 3 get 1 free.
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Production & material managementLife cycle of Lux soap
•Besides of all campaigns for the sales promotion of Lux .The reasons for itsdecline are :
•1. Currency fluctuations: Unilever products are in over 100 countriesworldwide, As a result, it is exposed to adverse currency fluctuations.•For instance, in 2004, a 5.9% decline in turnover was primarily due to a 4%appreciation in the average Euro exchange rate.
• 2.SLOWDOWN: In year 2008 - 09 due to hard economic conditions inINDIA and other countries the sales were highly affected as the consumerstarted looking for some alternate products with a cheaper price than Lux.
•3.Competition: Lux has been facing competition from HUL itself (Lifebuoy)& from other companies like:-
•Godrej Consumer Products : GCPL, India’s second largest soap maker with9.2% market share.
with leading brands such as CINTHOL, FAIRGLOW & NIKHAR.Fairglow brand, India's first Fairness soap, has created marketing history as oneof the most successful innovations
•Wipro : The presence of Wipro in the toilet soap industry can be seen throughtheir brands such as SANTO OR and CHANDRIKA. In the southern market ofIndia it is a major market player in toilet soap.
• ITC :It entered the segment last year and has made a strong headway in ashort time by growing to 1.75% in just five months. With the brands like:Superia, Fiama Di Wills and Vivel
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Production & material managementLife cycle of Lux soap
➢ PRICE:- price level,Discount,
Special offers.
➢ PLACE:- supermarkets,Shops,
Mail orders,etc.
➢ PRODUCT:- quality,Design,
Image,Name &Packaging.
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➢ PROMOTION:- advertising,Competitions,Sampling &
In-store display.
PRICE:-Competitive prices: Neither high nor low
Price segment of toilet soaps
Segments Prices/weight
Premium >Rs.15/75gms
Popular Rs.8-15/75gms
Economy <Rs.8/75gms
Recent pricing of lux(100g)
Lux Crystal Shine Rs.17
Lux Festive Glow Rs.15
Normal Lux Rs.10
Mini Lux Rs.5
PLACE:-➢ Distribution network-key strength (which help reach out its product across the
length and width of the vast country)➢ 2000+ Suppliers & Associates➢ 7000 Stockists
➢ Direct coverage in over 1 million retail outlets➢ Factory-Company warehouses-Distributor-Market
➢ Factory- Wholesaler & Big Retailer(Bulk orders)-30%Sales
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Production & material managementLife cycle of Lux soap
PRODUCT:-➢ Product classification:-
Tangible Non durable
➢ Logo:-
➢ Labelling:- Lux trade character or logo is present prominently in the package.
Female models. Displayed graphically- Key ingredients.
➢ Packaging:-
variants & Pink Rose extracts etc.) Packages size-100gm, 120gm, 150gm. Launched- Mini Lux- 45gm- Rs.5/-
➢ Promiinent variants:- Lux almond Lux orchid
Differents colours- differentvariants(Saffron-Saffron
Lux pearl glow
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Production & material managementLife cycle of Lux soap
Lux renewal massage Lux crystal shine Lux rose
Luxinternational Lux chaocolate Lux aromatic extracts
Creamy delight Lux Purple lotus Lux
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Production & material managementLife cycle of Lux soap
Lux SPA Lux Shower gel range
Lux body wash Lux hand wash
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➢Lux FNF Lux Shampoo
➢ PROMOTION:-✔ Sales Promotion:-
Lux presented 30gm gold each to the firstthree winner of the Lux Gold Star offer
from Delhi. According to the promotional offers that Lux unveiled inOctober 2000, a consumer finding a 22-carat gold in his or her soap bargot an opportunity to win an additional 30gm gold. The first 10 caller ofevery week got a 30gm gold each. The offer could be availed only on100gm and 150gm pack of Lux soap.
Lux star bano, Aish karo contest. All one neede to do wasto buy a promotional pack of Lux soap. The pack comes
with a special scratch card. The 50 lucky winner and theirspouse were flown down to Mumbai to live a day likeAishwarya Rai would. They could also be given gift
voucher worth Rs.50,000/- from Shopper Stop’s alongwith an exclusively designed by Neeta Lulla and a beauty makeover byMichelle Tung, Aishwarya’s preferred designer and stylist. The piece deresisitance was a dinner date with Aishwarya Rai herself.
Lux celebrated 75 year of stardom with theHar Star Lucky Star Activity. All wrappersof Lux had a star printed inside them. If theconsumer found written inside the star, anynumber from “1 to 5”, he or she would get anequivalent discount (in rupees) on his or her
purchase from his or her shopkeeper. If the consumer found the “75years” written inside the star, he or she will get a year’s supply of Luxfree.
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Production & material managementLife cycle of Lux soap
Lux, the brand synonymous with beauty and stars, now takes its legacy a notchhigher by introducing the Lux Superstar offer. The
offer gives an opportunity to consumers to meetBollywood's Superstar couple Abhishek Bachchanand Aishwarya Rai Bachchan in London.
Now anyone can get a taste of stardom and rubshoulders with the power couple, all you need is to
purchase Lux soap and complete a slogan to stake a claim to an evening full ofglamour, glitz and glory. 12 lucky couples will be flown to meet Abhi & Ash inLondon. Well, this is not all... there are exclusive signed photographs of thecouple to be won.
12 lucky couples could win a chance to go to London and spend an eveningwith Abhishek and Aishwarya Rai Bachchan.
✔ Promotion:-
The first ambassador Leela Chitnis featured in a Lux advertisement whichflagged off the Lux wagon. She gave way to a galaxy of stars which include
Madhubala, Nargis, Meena Kumari, Mala Sinha, Rekha, parveen babi,SharmilaTagore, Waheeda Rehman, Sairah Banu, Hema Malini, Zeenat Aman, JuhiChawla, Madhuri Dixit, Sridevi, Aishwaria Rai Bachchan, KareenaKapoor,Priyanka Chopra and most recently Katrina Kaif.
The last frontier for most actors aspiring to stardom is becoming a Luxambassador. The brand has outlasted many soaps.
From the beginning, Lux became a household name in the country.
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Production & material managementLife cycle of Lux soap
Lux advertisements through ages Lux campaigns have wooed millions ofpeople over the decades. Popularly known as the beauty soap of film stars, Luxhas been an intimate partner of the brightest stars on the silver screen fordecades. An ode to their beauty, an
announcer of the ir stardom, advertisingcampaigns on Lux have featured film starsacross the nation, promising their beautyand complexion to common women .Withtop movie stars - from Madhubala toMadhuri, from Babita to Karishma andKareena having endorsed the goodness of
Lux over generations, it was natural that the brand has built equity as the bestbeauty soap in India.
NEW LUX:-
Actress Asin Thottumkal has joined the likes of Aishwarya Rai, PriyankaChopra and Katrina Kaif as the new brand ambassador of Lux soap.
She has been signed as the face of the soap's new variant Lux Sandal & Cream."It's a beauty accolade to be associated with the legendary beauty brand Lux,which has celebrated beauty and glamour over the decades. It gives meimmense pride to endorse the new natural variant Lux Sandal & Cream, as Itruly believe in being beautiful the natural way," said
Asin."The credit of rooting the right beauty mantra goes tomy mom, who being a doctor, has always entrusted thebeauty of my skin to sandalwood, due to its magicalcleansing, toning and moisturising attributes," sheadded.
IDEA:- If it is good for star, it is good for me.
In 2005 Lux celebrated its 75th anniversary sparking of a controversy.Deviating its tradition of roping Bollywood Divas, this time none other thanShah Rukh Khan endorsed Lux. The ads created instant controversy withmarketers discussing whether the brand has suddenly become MALE. PaulNewman also has endorsed Lux soap which shows that Lux makes such stuntsto excite the market. Whatever be the controversy, the brand a gain succeeded
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Production & material managementLife cycle of Lux soap
in creating excitement in the market. Some argue that HLL was testing a newpositioning appeal to male users while others say that
it was a one time endorsement to break the clutter. Arecent ad of Lux featured the golden coupleAishwarya Ra i Bachchan and Abhishek Bachchan.They were paid Rs.25crore for this ad. But in all these advertisements thecelebrity never shadowed thebrand.
From the beginning Lux, by using a leading film starof the time has fulfilled the consumers aspirations of us ing beauty soaps viathe rationale if its good enough for a film star, its good for me´. This latermoved into a transformation role of having a bath
with Lux, which transports the user into a fantasyworld of icons, film stars and fairy lands.
Events:Lux celebrated 75 years of existence in a grand
way by unveiling Shah Rukh Khan as their latest brand ambassador.Kareena Kapoor, Juhi Chawla, Sridevi and Hema Malini graced the event and
made it special. All this stars have endorsed Lux in the past. The event was heldat the Grand Intercontinental in Mumbai.
South Indian:-
JAYALALITHA (1970)
SHRIYA SHARAN
Change in communication strategyLux was always changing with the times. Whether in terms of product or in
terms of promotions, the brand kept the consumers excited. Lux was initially apremium brand. It was being projected as an aspirational brand and the
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Production & material managementLife cycle of Lux soap
endorsements by stars further reinforced the positioning. However thecommunication was slowly seemed to be losing relevance, as consumers werebeginning to question if the film star actually used the brand. The increasingcompetition in the soap category also forced Lux to rethink on its targetingstrategy. Several competitive beauty soap brands had begun advertising usingsimilar methods of communication. The brand had a choice either tocompromise on market share or dilute the positioning. In this context, theglobal brand team for Lux developed a new communication strategy. Thisstrategy -bring out the star in you -for the first time moves the brand away fromthe long running film star route. The film stars still features in the newcommunication but not as her gorgeous self but rather as an alter ego/projectionof the protagonist, for a few seconds of the entire ad. Thus, for the first time thefilm star was used as a communication device and not as the main feature ofthe ad. The move away from the film star and her fantasy world to the regularLux user with the focus on the protagonists star quality is a change from thenorms set by the Lux advertising in the past. With the new communicationstrategy, the filmstar is used purely as a communication device to po rtray star quality in everyLux user. This can be significantly seen in the latest TV commercial of LuxCrystal Shine where Priyanka Chopra is portrayed as a normal woman. Thisidea-bring out the star in you -puts the consumer at the heart of brands promise.The promise goes beyond the functional deliverables of soap, beyond bathingand bathroom to the world outside. Its the world where Lux on her side, anordinary woman can impact her world with her own star quality. This is asuccessful attempt to bring the brand closer to its users and give it a more usefuland contemporary image. Breaking away from tradition, HLL resorts to a maleand metro sexual Shah Rukh Khan to revive Lux which turned 75 in 2005.
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Production & material managementLife cycle of Lux soap
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Production & material managementLife cycle of Lux soap
Marketing Project Reporton Lux Soap
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Production & material managementLife cycle of Lux soap
By:Amit Kumar SinhaPGDMRM-002IPE, Hyderabad
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Production & material managementLife cycle of Lux soap
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Production & material managementLife cycle of Lux soap
Contents:Company Profile - HUL
Distibution Channel - HUL
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Production & material managementLife cycle of Lux soap
Product Mix - HULOverview - Lux SoapMarketing Mix
SWOT AnalysisCompetitor AnalysisMarket SegmentationRecommendationReference
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Production & material managementLife cycle of Lux soap
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Production & material managementLife cycle of Lux soap
Company Profile - HUL
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Company Profile - HUL
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Production & material managementLife cycle of Lux soap
•A 52% owned subsidiary of Anglo Dutch giant Unilever.
•India - 1888
•India largest FMCG company
•Touching 2 out of 3 Indian consumer
•20 distinct categories - Home and personal care products, food
and beverages.
•HLL - HUL
•100 factories - India - Manufacturing its diverse product range
•Headquarter: Mumbai
•Market share - Toilet soap category - 54.3%
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Production & material managementLife cycle of Lux soap
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Production & material managementLife cycle of Lux soap
Revenue Percentage:
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Production & material managementLife cycle of Lux soap
Distribution Channel - HUL
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Production & material managementLife cycle of Lux soap
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Production & material managementLife cycle of Lux soap
Distribution Channel - HUL
2000+ Suppliers and associates
4000 Redistribution stockists
Covering 1 million retail outlets
Reaching 250 million rural consumers
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Production & material managementLife cycle of Lux soap
Product Mix- HUL
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Production & material managementLife cycle of Lux soap
The width of the HULProduct mix:
The width of the product mix refers to the
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Production & material managementLife cycle of Lux soap
number of different product line the companycarries
E.g: Personal wash
LaundrySkin careOral careDeodorants
Colour cosmeticsAyurvedic personal and health care
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Production & material managementLife cycle of Lux soap
ShampooTeaCoffee
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Production & material managementLife cycle of Lux soap
FoodsIce creamWidth = 12
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Production & material managementLife cycle of Lux soap
The lenght of the HULProduct mix:
The Lenght of the product mix refers to the totalnumber of items in the product mix.
E.g: Personal wash: Lux, Lifebuoy, Liril, Hamam,Breeze, Dove, Pears, Rexona
Laundry: Surf excel, Rin, WheelSkin care: Fair & Lovely, Ponds, Vaseline, AvianceOral care: Pepsodent, Close up
Deodorants: Axe, RexonaColour cosmetics: Lakme
Ayurvedic personal and health care: Ayush
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Production & material managementLife cycle of Lux soap
Shampoo: Sunsilk, ClinicTea: Broke bond, Lipton.Coffee: Bru
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Production & material managementLife cycle of Lux soap
Foods: Kissan, Annapurna, KnorrIce cream: Kwality walls
Width = 30
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Production & material managementLife cycle of Lux soap
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Production & material managementLife cycle of Lux soap
The Depth of the HUL Productmix:
The depth of the product mix refers tothe number ofvariants of each product offered in the line
E.g: If close up toothpaste comes in three formulation and inthree sizes, close up has a depth of 9 (3*3)
The Consistency of the HULProduct mix:
The consistency of the product mix refers to how closelyrelated the various product lines are in the use, productionrequirement, distribution channel or in any other manner.HUL Product line are not consistent because of its large width.
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Production & material managementLife cycle of Lux soap
Overview : Lux Soap 1916 - Laundry soap
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1925 - Bathroom soap
India - 1929
First brand ambassador: Leela Chitnis (1929)
Market share is almost equal to Lifebuoy
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Marketing Mix:
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Product:Product Classification:Tangible
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Production & material managementLife cycle of Lux soap
Non durable good Lux and other soaps fall into thecategory of convenience good.
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Production & material managementLife cycle of Lux soap
Product Life Cycle:Maturity Stage
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Production & material managementLife cycle of Lux soap
Prominent Variants:Lux almond
Lux orchid
Lux fruit
Lux saffron
Lux sandalwood
Lux rose
Lux international
Lux chocolate
Lux aromatic extracts
Lux oil and honey glow etc.
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Production & material managementLife cycle of Lux soap
Logo:Labelling:
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Production & material managementLife cycle of Lux soap
Lux trade character or logo ispresent prominently in the packageFemale model
Displayed graphically - Keyingredients
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Packaging:
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Production & material managementLife cycle of Lux soap
Different colors - Differentvariants( Saffron - Saffron variants &Pink - Rose extracts etc. )Package size - 100gm, 120gm, 150gmLaunched - Mini Lux - 45gm - Rs 5
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Price: Competitive prices: Neither highnor low
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Place: HUL distribution network - key
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strength (Which helps reach out itsproduct across the length and widthof the vast country) 2000+ Suppliers & Associates 7000 Stockists
Direct coverage in over 1 millionretail outlets
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Network:Factory - Company warehouses -Distributor - Market
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Production & material managementLife cycle of Lux soap
Factory - Wholesaler & Big retailers(Bulk orders) - 30% Sales
Promotion:63
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Active since 1929
Featured all top actress of their times.
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Idea: if it is good enough for a film star, it is goodfor me.
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First Male BrandAmbassador:
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Production & material managementLife cycle of Lux soap
South India:1970 - JayalalithaShriya Sharan
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Sales Promotion: Lux gold star offer: 22 Carat Goldcoin in the Soap - First 10 caller
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(Extra 30 gm gold)Lux star bano, Aish karo contest: Aspecial promotional pack of lux soap- Scratch card -50 lucky winner gotthe chance to meet Aishwarya rai.
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SWOT AnalysisStrengths:
➢ Strong market research (Door to door sampling - once in a year - Rural andUrban area.)
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➢ Many variants (Almond oil, Orchid extracts, Milk cream, Fruit extracts,Saffron sandalwood oil and Honey).
➢ Strong sales and distribution network backed by HUL.➢ Strong brand image
➢ Dynamically continuous innovations - New variants and innovativepromotions (22 carat gold coin promotion - “Chance Hai”)
➢ Strong brand promotion but relatively lower prices - Winning combination.➢ Mass appeal/Market presence across all segments ( 15% of soap market)
Weakness:-
➢ Mainly positioned as beauty soap targeted towards women, lack unisex appeal➢ Some variation like the sunscreen, international variant did not do well in the
market➢ Not much popular in rural areas
Opportunities:-
➢ Soap industry is growing by 10% in India.➢ Beauty segments compounded annual growth rate(CAGR) is very high.
➢ Liquid body wash is currently in growth stage- Lux should come out with morevariant in this segments.
➢ Large market share- Strong hold over the market
Threats:-
➢ High internal competitions (Pears-beauty segments)➢ New entrants (Vivel)
➢ Maturity stage-threats of slipping down to decline stage- if constant reinventionis not carried out.
Internal Competitor:-➢ Lifebuoy: 1895, 18% market shares
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External competitiors:-
➢ Herbaria
➢ Merci➢ Clarin
➢ Gender: female➢ Age:16-35
➢ Income: middle income group (Rs.15-20)➢ Highest selling beauty soap in urban areas (rural area-lifebuoy)➢ Expensive-affordable
➢ Target area: urban and sub-urban - upper middle and middle classpeople
➢ Created good position: Buyers mind- Better product attributes, price andquality.
➢ Offering product in a different way➢ Offering: improved quality of the product- affordable price with high
branding- to position the product as a best quality beauty soap in buyersmind.
➢ Market shares of Lux: 15%➢ Better positioning: market leader of beauty soap.
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➢ Ayurvedic Variants➢ Lux Kids Special Soap➢ Target Rural Area➢ Target Male Customers
The beauty soap industry of India consists of a few producers in the industry.The Demand for this product is very much vulnerable in terms of pricing.Hindustan Unilever is providing LUX at a price which is affordable to most ofthe people in the country. Beauty soap is an uprising product in India as agreater portion of the population, both male and female, are now getting morebeauty conscious. As a multinational company Hindustan Unilever with heavypromotional activities, has been able to penetrate the market. With six differentfragrances, three different sizes, international standard and high quality design,as a product, LUX has been highly successful over the years. Its distributionprocess is highly efficient. Its promotional activities, like the beauty contest hasbeen a milestone in attracting a huge number of customers. Overall with itsmarketing activities LUX has been a successful brand.
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Production & material managementLife cycle of Lux soap
➢ www.mbaparadise.com➢ www.fmcg.com
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➢ http://themes.blogflux.com/theme/5483.html➢ http://www.businesswireindia.com/attachments/Kareena%20Lotus.jpg➢ http://marketingpractice.blogspot.com/2007/01/lux-celebrating-
beauty.html➢ http://www.slideshare.net/hit20032003/lux-presentation-presentation
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