Marketing Project Report on Lux Soap

Abhishek Dhamankar 1 Sunil Bandi 53 Nikhil Sahani 32 Jitendra Singh 62 Swapnil Bhatkal 54 Ankush Shah 60

INDUSTRY ANALYSIS

‡ The Toilet soaps market is estimated at 5,30,000 tpa including small imports. ‡ Bathing and toilet soaps accounting for around 30% of the soap market. ‡ Soap Industry divided into three segments namely premium, popular and economy. ‡ Premium soaps are estimated to have a market volume of about 80,000 tones which around share of 14 to 15%

MAJOR PLAYERS

3

Company Profile - HUL
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ A 52% owned subsidiary of Anglo Dutch giant Unilever. India ² 1888 India largest FMCG company Touching 2 out of 3 Indian consumer 20 distinct categories ² Home and personal care products, food and beverages. HLL ² HUL 100 factories ² India ² Manufacturing its diverse product range Headquarter: Mumbai Market share ² Toilet soap category ² 54.3%

Revenue Percentage:

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:
items in the product mix. E.g: 

The Lenght of the product mix refers to the total number of 

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 Lux soap comes in three formulation and in three sizes, close up has a depth of 9 (3*3)

Overview : Lux Soap 
1916 ² Laundry soap 
1925 ² Bathroom soap  India ² 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:

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 ² Key ingredients

Packaging:
‡ Different colors ² Different variants( Saffron ² Saffron variants & Pink ² Rose extracts etc. ) ‡ Package size ² 100gm, 120gm, 150 gm ‡ Launched ² Mini Lux ² 45gm - Rs 5

Price: 
Competitive prices: Neither high nor low

Place: 
HUL distribution network ² 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
D1

Mfg unit

warehouse

D2

Market

Consumer

D3

Network: 
Factory ² Company warehouses ² Distributor ² Market Factory ² Wholesaler & Big retailers (Bulk orders) ² 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 ² Jayalalitha Shriya Sharan

Sales Promotion:
Lux Gold Star offer 

Lux gold star offer: 22 Carat Gold coin in the Soap ² First 10 caller (Extra 30 gm gold) Lux star bano, Aish karo contest: A special promotional pack of lux soap ² Scratch card -50 lucky winner got the chance to meet Aishwarya rai.
Lux Star Bano, Aish Karo contest

Public Relation
‡ Events:
Lux celebrated 75 years of existence in a grand way. The event was held at the grand intercontinental in Mumbai.

‡

Limited Edition:
coming strategy seduction, with limited edition glow,

like

chocolate

aromatic

festive glow and haute pink.

SWOT Analysis

Strengths: 
Strong market research (Door to door sampling ² once in a year ² 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 ² New variants and innovative promotions (22 carat gold coin promotion ² ´Chance Haiµ) Strong brand promotion but relatively lower prices ² 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 ² Lux should come out with more variants in this segment Large market share ² Strong hold over the market

Threats: 
High internal competition (Pears ² Beauty segment) New entrants (Vivel) Maturity stage ² threat of slipping down to decline stage ² if constant reinvention is not carried out

Competitor Analysis

INTERNAL COMPETITORS LIFEBUOY:

Landed On: 1895 Brand By: Hindustan Unilever Limited (HUL) Market Share: 18% Worth Rs 6,000 Crore. Repositioned: In Year 2002 From Hard Soap To Mild Soap.

External competition SANTOOR:

Landed On: 1986 Brand By: Wipro consumer care. Popular segment: 2nd largest brand.

‡ CINTHOL:

‡ Brand By: Godrej consumer product ltd.. ‡ Economic segment: largest brand.

VIVEL:

‡Landed On: 2007 ‡Brand By: ITC ‡Economic segment: largest brand.

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 ² Affordable, Target Area: Urban and Sub urban ² Upper middle and middle class people

Product Positioning of Lux 
Created Good Position ² Buyers mind ² Better product attributes, price and quality  Offering product in a different way  Offering ² improved quality of the product ² affordable price with high branding ² 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 ² Market leader of beauty soap

Recommendation:

Recommendation: 
Ayurvedic variant Lux kids special soap Target rural area Target male customers

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