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Published by: priyank_srivastava_1 on May 20, 2010
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01/09/2013

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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: 
E.g:

The width of the product mix refers to the number of different product line the company carries

 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 of the product mix refers to the total mix:  The Lenght

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 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 Depth of the HUL Product mix:

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  Lux  Lux  Lux  Lux  Lux  Lux  Lux  Lux  Lux almond orchid fruit saffron sandalwood rose international chocolate aromatic extracts 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

 Active since 1929

Promotion:

 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:

1970 – Jayalalitha Shriya Sharan

South India:

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

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