In the name of Allah
The most beneficent, the most merciful Let man consider his food How we pour water in shower They split the earth in cliffs And cause the grain to grain to grow there in And grapes and green fodder And olive tree and palm And garden Close if thick foliage And fruits and grasses Provision for your and your cattle

Surah Al Abbas


Marketing Project Report Company: Unilever Brothers Product: LUX (Soap)

Submitted by: Ayaz ali Mirza Owais Mirza Ishfaq Ahmad MBA (1) C Evening Submitted to: Amina Ehsan Department: M.B.A

I would like to thank her for showing me some examples that related to the topic of my project. I would like to thank the authority of Bahria University for providing me with a good environment and facilities to complete this project. Finally. . Families and Friends for their understandings and support on me in completing this project. . Her willingness to motivate me contributed tremendously to my project. an honorable mention goes to my Teachers.3 Acknowledgment First and foremost. I would face many difficulties while doing this project. Besides. she inspired me greatly to work in this project. I would like to thank to my supervisor of this project. Lecturer Miss Amina Ehsan for the valuable guidance and advice. Without help of the particular that mentioned above.

Other competing brands like Dove.75% share whereas the Government of Peoples Republic of Pakistan holds39. where the company holds 60. Tactical marketing tools. The beauty soap industry has a few major producers of which Unilever holds market share of slightly less than 50%. The cluster is divided into five parts starting from A to E. Unilever’s one of the most popular brand is LUX. It further differentiates these segments into Socio Economic Cluster (SEC) which takes into account the criteria of education and profession which ultimately measures the financial ability of consumers. It undertakes the largest promotional activities in the beauty soap industry.4 Executive Summary Unilever is a multinational consumer product manufacturing giant operating in over hundred countries all around the globe. variations in price lead to price war which can eventually break down the company’s market share. Since the demand for beauty soap market is to a great extent oligopolistic.25% shares. The product is available in six different fragrances under three different sizes. Unilever Pakistan is the Pakistan chapter of Unilever.’s product features distribution and promotional activities have created high brand loyalty for which it is still the market leader. Unilever Pakistan maintains the same standard all around the globe. who falls under A to C of SEC. . are extensively used by the company to market LUX. Though LUX is produced in Pakistan. Thus Unilever cannot provide a better price than its competitors.’s market according to geographical locations. 4P’s. They segments LUX. But the price is affordable by most of the people. Rexona and Capri have started to have a strong consumer base. but LUX. Unilever targets the urban and sub urban upper middle class and middle class segment of the population. Unilever Pakistan has outsourced its distribution channels to third party distributors which allow them to distribute LUX in massive bulks amounting to around ten million pieces.

5 Table of Contents (1) Introduction and History Introduction History Unilever Pakistan Limited Unilever LUX 6 7 7 9 (2) The Marketing Process Vision & Mission Logo & Slogan Customer Driven Marketing (Product Category & Market Segmentation) (Segmentation Of LUX) (Target Market & Market Positioning) 11 11 12 12 13 14 (3) Using the Tactical Marketing Tools Marketing Mix PRODUCT BCG Matrix Product Life Cycle Logo. Labeling & Packaging PRICE & PLACE PROMOTION Sales Promotion 15 16 17 18 19 20 21 (4) Analyzing the Market Capturing Market for Customers In Return SWOT Analysis 22 23 (5) Conclusion and Recommendations Conclusion Recommendation & References 24 25 .

personal grooming. fabric cleaning. oral care. All Clear. and tea based beverage products under worldwide famous brand names Wheel. Pond's. skin cleansing.6 Introduction and History Introduction Unilever is one of the world’s largest and leading multinational companies. Close Up. Sunsilk. Lipton. The usage of Unilever products by over 90% of the people in Pakistan stands a testimony to their successful operation. Lipton Taaza. and Rexona.. Unilever commenced their business activities on a larger scale by setting up their first factory in Netherlands. Vim. . Pepsodent.Their array of products show that they produce household care. Surf Excel. hair care. in the year of 1890. Fair & Lovely. Lifebuoy. skin care. Operating in Pakistan for over the last four decades the company is trying to significantly contribute towards the augmentation of the standard of living by bringing world class high quality products at the door step of their customers. LUX.

Unilever is one of the biggest company of the world with its products spread all over the world.7 History In the 1890s.187 Billion in 20) . founder of Lever Bros. Now operating six factories at different locations around the country. General Information No. Unilever Pakistan Limited The Unilever Pakistan Limited (UPL). as well as one of the largest multinationals operating in the country. William Hesketh Lever. Of Employees Shareholders Stock Exchange Revenue ( 1677 ) (4171 ) ( Karachi ) (40. wrote down his ideas for Sunlight Soap – his revolutionary new product that helped popularize cleanliness and hygiene in Victorian England. Unilever Pakistan is the largest FMCG company in Pakistan. The Unilever shares in the world are: Europe 38% Asia/Africa 29% The Americas 33%. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory. Present in 150 countries around the world with a wide range of products. The Unilever's Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. formerly Lever Brothers Pakistan Limited was established in Pakistan in 1948.

8 List of Unilever Brands in Pakistan • • • • • • • • • • • • • • • Blue Band Supreme Tea Clear Shampoo Close Up Fair & Lovely Lifebuoy soap & shampoo LUX Surf Excel Wall’s Lipton Tea Sunsilk Knorr Soup / Nudels Rexona Imperial Pond’s .

Lux is currently a product of Unilever.9 Unilever LUX Lux soap was first launched in the UK in 1899 as a flaked version of Sunlight soap. The result was a gentler soap that dissolved more readily and was advertised as suitable for home laundry use. In Pakistan Lux was first introduced in 1957 and till now Lux has become one of the top soap in Pakistan . Subsequently it was launched in the US in 1916. and marketed as a laundry soap targeted specifically at 'delicates'. The flake-type soap allowed the manufacturer some leeway from lye because it did not need to be shaped into traditional cake-shaped loaves as other soaps were. The name "Lux" was chosen as the Latin word for "light" and because it was suggestive of "luxury. Lever Brothers encouraged women to home launder their clothes without fear of satins and silks being turned yellow by harsh lyes that were often used in soaps at the time.

LOGO & SLOGAN This is the logo of Unilever “SLGOAN” “feel good. We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact.10 The Marketing Process Vision • • • • We work to create a better future every day. hygiene and personal care with brands that help people feel good. We will inspire people to take small everyday actions that can add up to a big difference for the world. We help people feel good. We meet everyday needs for nutrition. look good and get more out of life with brands and services that are good for them and good for others. look good and get more out of life. Mission Unilever’s Mission is to add vitality of life. look good and get more out of life…” .

education and Income. Moreover some survey reports also reveal the same result. .e. Moreover as a beauty soap LUX does not even segment its market according to gender. The company further differentiate the geographical segments according to Socio Economic Cluster (SEC) i. Unilever Pakistan Ltd.11 Customer Driven Marketing Strategy Product Category LUX falls under the category of toiletry product as a beauty soap. sub urban and rural area consumers. Though LUX is the highest selling beauty soap in Pakistan. segments their market according to geographical areas. it does not go for traditional mass marketing. Market Segmentation The company claims that LUX is the highest selling beauty soap in Pakistan. The population of the country is segmented into three parts which are urban.

Parties. Believers. Sports & Regular Occasions Quality. Economy.12 Segmentation of LUX Segmentation Variables Geographic World region Countries Cities Density Climate Asia Pakistan All major cities in Pakistan Urban Hot & Dry 15-50+ Female 1-2. Hinduism. Fulfilled. Older. Single. Married.20. Strivers. no children. Christianity. Colleges. Taste. 3-5.000+ From Middle Class To Upper Class School. Other Rs. Married with no children. Older. Upper Class Actualizes. Health Data Demographic Age Gender Family Size Family Life Cycle Income Occupation Education Religion Race Nationality Psychographic Social Class Lifestyle Behavioral Occasions Benefits . Young. Achievers. Universities Major Religion Of Islam. Single. Birthdays. Under 18. and Small Percentage Of Others Asian Pakistani Middle Class. 5+ Young. Married with children. Young.

price and quality. for which it the market leader in the industry. That is why the company targets urban and sub urban upper middle and middle class people who are the second highest population of segment of the country. The company offers improved quality of products in the industry at an affordable price with high branding. From the segmentation of customer according to SEC they target category A. B and C. which ultimately helps to position the product in the buyers’ mind as the best quality beauty soap. The market share of the company in the beauty soap industry is somewhere around 52%. because they are assumed to be financially well-off and can afford to buy LUX. LUX is not a highly expensive but an affordable product.Since in the beauty soap industry all products are of same price Unilever cannot provide its consumers with better price but it is in a great position in reference with its packaging. However urban and sub urban upper middle and middle class people tend to buy affordable and quality products. This positioning created a strong customer loyalty for LUX.13 User Status Attitude Towards Product First time user Positive Target Market A research carried out by Unilever Pakistan reveals that urban rich people are more likely to buy imported and expensive products. Moreover rural poor people tend to buy cheap products even without evaluating its quality. Product Positioning: Unilever Pakistan Ltd obtained a good position in the buyers’ mind through better product attributes. . It states that though in comparison to its competitors the pricing of LUX is same but consumers rate it as the product which gives them the highest quality. fragrances and product designing. offering the product in a different way than the competitors do.

14 Using the Tactical Marketing Tools Marketing MIX Product LUX is an internationally renowned beauty soap brand of Unilever. glycerol and different extracts according to flavors. 80gm and 120gm. it maintains an international quality for the product. Though manufactured in Pakistan for the local market by Unilever Pakistan Ltd. LUX is produced in Pakistan from imported raw materials like sodium soap. Formula given by Research and Development departments in foreign countries. LUX is offered in Pakistan in six different flavors which are: LUX Energizing Honey. LUX Orchid Touch. LUX Nature Pure. Taking into account the convenience of its customers. as an international brand. LUX Golden Glow. coming from Unilever plants situated abroad. the company manufactures all flavors of LUX in three different sizes. Orchid touch sparkle Almond delight Energizing fruit Aqua . 40gm. LUX Almond Delight and LUX Aqua Sparkle.

LUX Surf Excel Lipton Close Up Lifebuoy Soap Rexona .15 BCG MATRIX STARS: • • • • • High growth rate and high market shares. LUX Sunsilk Wall’s Fair & Lovely CASH COWS: • • • • • • • Low growth and high market shares.

.16 DOGS: • • • • • • • • • Low growth rate and low market shares. Ponds Blue Brand Knorr Close Up QUESTION MARK: High growth rate and low market shares. Clear Shampoo Rin Comfort PRODUCT LIFE CYCLE Of LUX LUX beauty soap is in the Maturity stage of its Life Cycle.

120g. pink for the rose extracts etc. The bars come in the package sizes of 100g. A novel metallic substrate packaging showcases the ingredients. 150g . Packaging: The colors are different from different variants such as saffron for the saffron variants.17 Logo: Labeling: The LUX trade character or Logo is presented prominent on the package. and a female model is shown on the pack. Also displayed graphically are the key ingredients.

However. exclusively dedicated to Unilever Pakistan Ltd. Even though LUX targets the urban and sub urban middle and upper middle class people . 12Rs. The company has six huge warehouses. Place Unilever Pakistan Ltd. These distributors then supply the product all over Pakistan to a huge number of retailers. has a huge distribution channel for LUX all over the country as its sales reach more than 10 million pieces a year. Price Though Unilever Pakistan gives its LUX customers a lot in terms of the product itself. it cannot provide a better pricing. Company carries out research on competitors’ price and brand loyalty when it feels extreme necessity of changing price. The company does not use its own fleet of transport for distributing its product. it has outsourced its distribution process to various third party distributors. one in each division of Pakistan. Beauty soap is a product with a vulnerable demand in Pakistan. This is due to some constraints in the beauty soap industry. 28Rs. PRICES 45Rs. Its prices are almost equal to its competitors. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit.18 LUX has SIZES also 115gm lunched a 80gm 45g 45gm variant called Mini LUX priced at Rs. 10.

19 they are distributing their products all over Pakistan because of a recent increase in demand of its product to all segments of the population. goods and services by an identified sponsor. Advertisement: Advertisement is any paid form of non personal presentation and promotion of ideas. Promotion Unilever in Pakistan & India undertakes huge promotional activities to promote LUX which has topped the beauty soap industry of Pakistan. It spends almost 20% to 25% of its Net Proceeds from Sales (NPC) of LUX for promotional activities for LUX. LUX Advertisement through Ages .

Sales Promotion Prominent Sales Promotion Schemes Used By LUX • LUX celebrated 75 years of stardom with the Har Star Lucky Star activity. The product has been positioned on the basis of REFRENCE GROUP by using a celebrity popular at the point in time.20 Pariyanka Chopra. is also brand imbasider for lux soap. any number from “1” to “5”. If the consumer found written inside the star. Katreena kaif. . he would get an equivalent discount ( in rupees) on his purchase from his shopkeeper. In pakistan film stars like Reema . Some amount of attribute positioning by mentioning the various ingredients has also been done. • • • USP or the comman thread through all the advertisement is the Presence of Movie Stars through the ages. If the consumer found “75 years” written inside the star. he will get a year’s supply of LUX free. in the latest LUX advertisement. All wrappers of LUX had a start printed inside them.Meera and Iman Ali are also in lux comersials.

Unilever Pakistan Ltd is operating in the industry with its world famous brand LUX. LUX has been closely associated with many of the most glamorous and sensual women of the age. to look and feel great.21 Capturing value from Customers in Return Market Share The beauty soap industry in Pakistan consists of only seven major producers. Which made there customers reluctant to Lux and to make there customers a loyal customers. Out of these giant companies Unilever Pakistan Ltd is the market leader with a share of around 43%. as they have market share much less than Unilever Pakistan Ltd. Marilyn Monroe. In Pakistan. Figure shows the market share of all the companies in the sector. Meera and Aaminah Haq have endorsed the brand. Demi Moore and Catherine Zeta-Jones are some of the stars who've appeared in Lux ads. . Customer Loyalty We all want to be pampered. leading celebrities like Babra Sharif. LUX has been winning hearts of Pakistani consumers for more than 20 years. Throughout this time. to enjoy that moment when anything seems possible. And that's just what Lux offers you on a daily basis at a price you can afford. The other competitors are very competitive among themselves but they cannot put a intense competition with Unilever Pakistan Ltd. Unilever Pakistan Ltd is leading the market.

lever brothers. THREATS • Possible increase of market share of Capri and Rexona. • Rising inflation. OPPORTUNITIES • High rate of population growth. • Market leader as it has a 43% shares.K • Loss of market share to some of its own products as Rexona.e.22 SWOT ANALYSIS SWOT analysis is done to know what the strength and weaknesses of the brand are and what are the opportunities and threats that company has to face from the environment. • Rising literacy. STRENGTH • Unilever is a big multinational company. • R&D and financial support from parent company i. • Strong and healthy relationships with distributors and retailers. • Management of product is familiar with the psychographics and demographic of the consumers. . which reduces personal disposable income of consumers? • Profit margin is exposed to rupee devaluation. • Strong brand image and brand awareness of “LUX”.P. • Market opportunity for “LUX” to penetrate in the new segments and market by the style and beauty consciousness of the people. WEAKNESSES • Low market share in K. • Large sales force. • Sound and experienced management. • Excellent marketing department assisted by a highly regarded marketing research unit.

Unilever Pakistan is providing LUX. Beauty soap is an uprising product in Pakistan as a greater portion of the population. The only place where rival companies are progressing is in giving customers redemption offers. With six different fragrances. Research revealed that Pakistani customers are highly attracted to this sort of offers. as a product. The demand for this product is very much vulnerable in terms of pricing. Its promotional activities. international standard and high quality design. LUX has been highly successful over the years. both male and female. As a multinational company Unilever Pakistan with heavy promotional activities. at a price which is affordable to most of the people in the country. has been able to penetrate the market.23 Conclusion and Recommendation Conclusion The beauty soap industry of Pakistan consists of a few producers in the industry. three different sizes. like the beauty contest has been a milestone in attracting a huge number of customers. are now getting more beauty conscious. . These offers are not sustainable in the long run but still it takes away a considerable part of LUX’s sale in the short run. Its distribution process is highly efficient. Overall with its marketing activities LUX has been a successful brand.

wikipedia.Because Lux has different skin type soap so now if they provide different types of beauty soaps for male and female soapunder the same brand name i. Lastly. Since a huge portion of the rural poor people is demanding LUX in recent days.e. LUX it might increase their sales.org/wiki/Unilever_Pakistan#Death_of_contestant_on_Unilever_spons ored_TV_reality_show . They should also conduct different promotional activities in rural fairs and socially responsible promotional activities to attract rural consumers and social awareness . to adopt for a more successful operation in Pakistan with large market share. as Pakistani culture children have a huge say in shopping so they should also promote the product to children like their another brand “Dove”. Unilever Pakistan Ltd should expand their target market also towards the rural people.wikipedia. References http://en. to adopt more successful operation in Pakistan.24 Recommendation I would suggest some recommendations to Unilever Pakistan Ltd.org/wiki/Lux_%28soap%29 http://en. These are the recommendations suggested by teem members to Unilever Pakistan Ltd.

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