Marketing Project Report

on Lux Soap

By:
Amit Kumar Sinha
PGDMRM-002
IPE, Hyderabad
Contents:
 Company Profile – HUL
 Distibution Channel - HUL
 Product Mix – HUL
 Overview – Lux Soap
 Marketing Mix
 SWOT Analysis
 Competitor Analysis
 Market Segmentation
 Recommendation
 Reference
Company Profile - HUL
 Company Profile - HUL
• 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%
Revenue Percentage:
Distribution Channel - HUL
Distribution Channel - HUL
 2000+ Suppliers and associates

4000 Redistribution stockists

Covering 1 million retail outlets

Reaching 250 million rural consumers

Product Mix- HUL
The width of the HUL
Product mix:
 The width of the product mix refers to the
number of different product line the company
carries
E.g:
 Personal wash
 Laundry
 Skin care
 Oral care
 Deodorants
 Colour cosmetics
 Ayurvedic personal and health care
 Shampoo
 Tea
 Coffee
 Foods
 Ice cream

Width = 12
The lenght of the HUL
Product mix:
 The Lenght of the product mix refers to the total
number of items in the product mix.
E.g:
 Personal wash: Lux, Lifebuoy, Liril, Hamam,
Breeze, Dove, Pears, Rexona
 Laundry: Surf excel, Rin, Wheel
 Skin care: Fair & Lovely, Ponds, Vaseline, Aviance
 Oral care: Pepsodent, Close up
 Deodorants: Axe, Rexona
 Colour cosmetics: Lakme
 Ayurvedic personal and health care: Ayush
 Shampoo: Sunsilk, Clinic
 Tea: Broke bond, Lipton.
 Coffee: Bru
 Foods: Kissan, Annapurna, Knorr
 Ice cream: Kwality walls

Width = 30
 The Depth of the HUL Product
mix:
 The depth of the product mix refers to the number of
variants of each product offered in the line
E.g: If close up toothpaste comes in three formulation and in
three sizes, close up has a depth of 9 (3*3)

The Consistency of the HUL

Product mix:
 The consistency of the product mix refers to how closely
related the various product lines are in the use, production
requirement, distribution channel or in any other manner.
HUL Product line are not consistent because of its large width.
Overview : Lux Soap

 1916 – Laundry soap

 1925 – Bathroom soap

 India – 1929

 First brand ambassador: Leela Chitnis (1929)

 Market share is almost equal to Lifebuoy

Marketing Mix:
Product:
 Product Classification:

Tangible
Non durable good

 Lux and other soaps fall into the

category of convenience good.
Product Life Cycle:

Maturity Stage
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.
Logo:

Labelling:
Lux trade character or logo is
present prominently in the package

Female model

Displayed graphically – Key

ingredients
Packaging:
Different colors – Different
variants( Saffron – Saffron variants &
Pink – Rose extracts etc. )

Package size – 100gm, 120gm, 150

gm

Launched – Mini Lux – 45gm - Rs 5

Price:
 Competitive prices: Neither high
nor low
Place:
 HUL distribution network – key
strength (Which helps 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
 Network:

 Factory – Company warehouses –

Distributor – Market

 Factory – Wholesaler & Big retailers

(Bulk orders) – 30% Sales
Promotion:
 Active since 1929
 Featured all top actress of their times.
 Idea: if it is good enough for a film star, it is good
for me.
First Male Brand
Ambassador:
South India:
1970 – Jayalalitha
Shriya Sharan
Sales Promotion:
 Lux gold star offer: 22 Carat Gold
coin in the Soap – First 10 caller
(Extra 30 gm gold)

Lux star bano, Aish karo contest: A

special promotional pack of lux soap
– Scratch card -50 lucky winner got
the chance to meet Aishwarya rai.
SWOT Analysis
Strengths:
 Strong market research (Door to door
sampling – once in a year – Rural and
Urban area.)
 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 innovative
promotions (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 more
variants in this segment
Large market share – Strong hold over the
market
Threats:
 High internal competition (Pears –
Beauty segment)

 New entrants (Vivel)

 Maturity stage – threat of slipping

down to decline stage – if constant
reinvention is not carried out
Competitor Analysis
Internal Competitor:
 Lifebuoy: 1895, 18% Market shares

External Competitor:
 Godrej consumers products limited
(GCPL):
 2nd Largest soap maker after HUL
9.2% Market share
Brands: Cinthol, Fairglow, Nikhar
 Wipro:
 Brand: Santoor (No 1 in AP) and
Chandrika

 ITC:
1.75% growth in initial five months
Brand: Superia, Fiama di wills and
Vivel
Sold in six states
Market segmentation
Market segmentation of Lux
Gender: Female
Age: 16-35
Income: Middle income group (Rs. 15 to 20)
Highest selling beauty soap in urban area
(Rural area: Lifebuoy)
Expensive – Affordable,
Target Area: Urban and Sub urban – Upper
middle and middle class people
Product Positioning of Lux
 Created Good Position – Buyers mind – Better
product attributes, price and quality
 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
buyers mind.
 Market share of HUL: 54.3%
 Market share of LUX: 15%
 Better Positioning – Market leader of beauty soap
Recommendation:
Recommendation:
 Ayurvedic variant

 Lux kids special soap

 Target rural area

 Target male customers

References:
References:
 www.capitaline.com
 www.hul.com
 www.google.com
 www.wikipedia.com
 www.mbaparadise.com
 www.fmcg.com
Questions???