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Production & material management

Life cycle of Lux soap

A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix. The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below:

Product Life Cycle Diagram

Introduction Stage In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows:
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Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained. Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. Distribution is selective until consumers show acceptance of the product.

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Production & material management

Life cycle of Lux soap

Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.

Growth Stage In the growth stage, the firm seeks to build brand preference and increase market share.
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Product quality is maintained and additional features and support services may be added. Pricing is maintained as the firm enjoys increasing demand with little competition. Distribution channels are added as demand increases and customers accept the product. Promotion is aimed at a broader audience.

Maturity Stage At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit.
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Product features may be enhanced to differentiate the product from that of competitors. Pricing may be lower because of the new competition. Distribution becomes more intensive and incentives may be offered to encourage preference over competing products. Promotion emphasizes product differentiation.

Decline Stage As sales decline, the firm has several options:
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Maintain the product, possibly rejuvenating it by adding new features and finding new uses. Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment. Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.

The marketing mix decisions in the decline phase will depend on the selected strategy. For example, the product may be changed if it is being rejuvenated, or left unchanged if it is being harvested or liquidated. The price may be maintained if the product is harvested, or reduced drastically if liquidated.

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Production & material management Life cycle of Lux soap 3 .

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. Lux is currently a product of Unilever. Subsequently Lux soap has been marketed in several forms. The name "Lux" was chosen as the Latin word for "light" and because it was suggestive of "luxury. 4 . People enjoyed matching their soap with their bathroom colours.   From the 1930s right through to the 1970s.Production & material management Life cycle of Lux soap Lux soap was first launched in the UK in 1899 as a flaked version of Sunlight soap. Lux responded to the growing trend away from traditional soap bars by launching its own range of shower gels. shower gel and cream bath soap. blue. green and yellow. including handwash. In 1958 five colours made up the range: pink. and in the UK in 1928 as a brand extension of Lux soap flakes. white. Lux soap colours and packaging were altered several times to reflect fashion trends. and marketed as a laundry soap targeted specifically at 'delicates'. In the early 1990s. 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 result was a gentler soap that dissolved more readily and was advertised as suitable for home laundry use. Lux soap was launched inIndia in 1929." Lux toilet soap was introduced as a bathroom soap in the US in 1925. As of June 2009 Lux is sold in over 100 countries . It was branded in India as "the beauty soap of film stars'. Subsequently it was launched in the US in 1916. The very first advertisement in 1929 featured Leela Chitnis as its brand ambassador. liquid soaps and moisturising bars.

Demi Moore and. however the name was chosen for its play on the word „luxury‟. Did you know?   Since the 1930s. over 400 of the world‟s most stunning and sensuous women have been proudly associated with Lux advertisements. have all been part of the Lux glamour story. the entire Lux range was relaunched in the UK & Ireland to include five shower gels. 5 . “Glowing Touch” and “Sparkling Morning” shower gels. our own Catherine Zeta-Jones. three bath products and two new soap bars. 2005 saw the launch of three exciting new variants with dreamy names such as “Wine & Roses” bath cream.Production & material management Life cycle of Lux soap  Lux beauty facial wash. The name Lux means „light‟ in Latin. Lux beauty bath and Lux beauty shower were launched in 1992. Brigitte Bardot. Marilyn Monroe. more recently. In 2004.

Production & material management Life cycle of Lux soap Lux soap was first launched in the UK in 1899 as a flaked version of Sunlight soap. As of June 2009 Lux is sold in over 100 countries 6 . and marketed as laundry soap targeted specifically at 'delicates'. including hand wash. The very first advertisement in 1929 featured Leela Chitnis as its brand ambassador. 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. Subsequently Lux soap has been marketed in several forms." Lux soap was introduced as bathroom soap in the US in 1925 and in the UK in 1928 as a brand extension of Lux soap flakes. 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. shower gel and cream bath soap. The result was a gentler soap that dissolved more readily and was advertised as suitable for home laundry use Lux is currently a product of Unilever. It was branded in India as "the beauty soap of film stars'. Lux soap was launched in India in 1929.Subsequently it was launched in the US in 1916. The name "Lux" was chosen as the Latin word for "light" and because it was suggestive of "luxury.

 Their distribution channel was through: Manufacturer Wholesaler & Retailer 7 .was to create the product awareness and to attract the customers towards the product. Mumbai etc. In ads they targeted the early adopters.  Distribution =was selective and only covers the major cities of INDIA to get recognition in those cities. •Price =In the initial stages of the product. •The Lux MARKETING STRATEGIES in the initial stages : •Product = They offer only on product in the market.Production & material management Life 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. who were readiest to buy the product. •At that time there was only one competitor of Lux. •In the initial stages Lux was introduced in the major cities of INDIA like Calcutta. The first ambassador. which was from its own brand “LIFEBUOY”. they want to recover their initial cost of making the product. •MARKETING OBJETIVES .  Advertising =In the initial stages. they allocate more advertising budget So that more and more customers could be attracted towards the product. Leela Chitnis. Because. they offer the relatively higher price than their competitor (LIFEBUOY). They did not come up with the differentiated product.

their sales rapidly started rising.Production & material management Life cycle of Lux soap In the growth stage. 8 .

Madhuri Dixit. •Price = In this stage. • Promotion = In the growth stage. they had increased their advertising budget as in the initial stages because of attracting the new customers or to retain the existing customers. Sharmila Tagore. the company had changed their price to some extent because of maximizing the market share. Juhi Chawla. Their distribution channel was the same as in the initial stages of the product. Hema Malini. •Another objective was to maximize more market share. the company had offered the same product in the market. •In the growth stage. •MARKETING OBJECTIVES = The marketing objectives of the Lux were to expand their market to the other cities of INDIA. Zeenat Amaan. company had expanded their market to the other cities of INDIA.Production & material management Life cycle of Lux soap •They have expanded their market to the other cities of INDIA. Sridevi • Distribution = In this stage. ( Slightly cut down the prices ) •Advertising = In the growth stage. company had the following MARKETING STRATEGIES : •Product = In the growth stage. the company had also used the different proportioning strategies to attract the new and the existing customers 9 .

Lux Rose. Lux Aromatic Extracts. CHANDRIKA.etc •Price = The Lux products are now available at higher prices in the market. •In this stage. few competitors enter into the market like ( CINTHOL. Lux International. Lux Saffron. • Advertising = In this stage Lux advertising has been reduced to some extent because of the more brand awareness in the minds of customers. Lux Chocolate. FIAMA DI WILLS and VIVEL ). they have shown Aishwarya Rai . •MARKETING STRATEGIES In this stage are based on: •Product= The Lux has made the modification in the product by introducing: Lux Almond. •The company has expanded their market to almost all the cities of INDIA. Lux Orchid .Like buy 3 get 1 free. Lux Oil and Honey. Lux Sandalwood. •Distribution = Now Lux products are available in almost all the cities of INDIA. Their distribution channel is same as in the initial stage. Kareena kapoor & Shah Rukh khan. Recently. FAIRGLOW.Production & material management Life cycle of Lux soap They modified the product by adding some changes in the product. 10 . •MARKETING OBJECTIVES = The marketing objective of Lux is to maximize more profit while defending the market share. And to expand the market to all the cities of INDIA. the reason behind is that the company‟s marketing objectives is to maximize more profit. SANTOOR. • PROMOTIONAL OFFERS :---. Lux Fruit.

in 2004. Fairglow brand. •3.The reasons for its decline are : •1. has created marketing history as one of the most successful innovations •Wipro : The presence of Wipro in the toilet soap industry can be seen through their brands 11 . with leading brands such as CINTHOL. Currency fluctuations: Unilever products are in over 100 countries worldwide. it is exposed to adverse currency fluctuations. India‟s second largest soap maker with 9.09 due to hard economic conditions in INDIA and other countries the sales were highly affected as the consumer started looking for some alternate products with a cheaper price than Lux. India's first Fairness soap.SLOWDOWN: In year 2008 . • 2.Competition: Lux has been facing competition from HUL itself (Lifebuoy) & from other companies like:•Godrej Consumer Products : GCPL.2% market share. a 5. •For instance.Production & material management Life cycle of Lux soap •Besides of all campaigns for the sales promotion of Lux . FAIRGLOW & NIKHAR. As a result.9% decline in turnover was primarily due to a 4% appreciation in the average Euro exchange rate.

Special offers. Shops. Mail orders. Discount.supermarkets.75% in just five months.Production & material management Life cycle of Lux soap such as SANTO OR and CHANDRIKA.etc.price level. Fiama Di Wills and Vivel  PRICE:. With the brands like: Superia. 12  . PLACE:. • ITC :It entered the segment last year and has made a strong headway in a short time by growing to 1. In the southern market of India it is a major market player in toilet soap.

15 Rs.17 Rs. Design. PROMOTION:.advertising.quality.15/75gms Rs. Name & Packaging.  PRICE:Competitive prices: Neither high nor low Price segment of toilet soaps Segments Premium Popular Economy Prices/weight >Rs.Wholesaler & Big Retailer(Bulk orders)-30%Sales PRODUCT: Product classification: Tangible  Non durable  Logo:13 .10 Rs. Competitions.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.8-15/75gms <Rs. Image.8/75gms Recent pricing of lux(100g) Lux Crystal Shine Lux Festive Glow Normal Lux Mini Lux Rs.Production & material management Life cycle of Lux soap  PRODUCT:. Sampling & In-store display.

different variants(Saffron-Saffron variants   & Pink Rose extracts etc.  Displayed graphically.  Packaging:-  D ifferen ts colours.) Packages size-100gm.Key ingredients.5/-  Promiinent variants: Lux almond Lux orchid Lux pearl glow Lux renewal massage Lux crystal shine Lux rose 14 . 120gm.  Female models.Mini Lux. 150gm.45gm.Production & material management Life cycle of Lux soap  Labelling: Lux trade character or logo is present prominently in the package.Rs. Launched.

Production & material management Life cycle of Lux soap Lux international Lux chaocolate Lux aromatic extracts Creamy delight Lux Purple lotus Lux Lux SPA Lux Shower gel range 15 .

16 .Production & material management Life cycle of Lux soap Lux body wash Lux hand wash     Lux FNF Lux Shampoo   PROMOTION: Sales Promotion: Lux presented 30gm gold each to the first three winner of the Lux Gold Star offer from Delhi. a consumer finding a 22carat gold in his or her soap bar got an opportunity to win an additional 30gm gold. According to the promotional offers that Lux unveiled in October 2000.

glitz and glory. Mala Sinha.Priyanka Chopra and most recently Katrina Kaif. Hema Malini. Madhuri Dixit. Sairah Banu. Zeenat Aman. The offer gives an opportunity to consumers to meet Bollywood's Superstar couple Abhishek Bachchan and Aishwarya Rai Bachchan in London. 12 lucky couples will be flown to meet Abhi & Ash in London. Kareena Kapoor.  Lux celebrated 75 year of stardom with the Har Star Lucky Star Activity. he or she would get an equivalent discount (in rupees) on his or her purchase from his or her shopkeeper. 17 . parveen babi. Waheeda Rehman. All wrappers of Lux had a star printed inside them.  Lux star bano.. this is not all. The piece de resisitance was a dinner date with Aishwarya Rai herself. 12 lucky couples could win a chance to go to London and spend an evening with Abhishek and Aishwarya Rai Bachchan.from Shopper Stop‟s along with an exclusively designed by Neeta Lulla and a beauty makeover by Michelle Tung. now takes its legacy a notch higher by introducing the Lux Superstar offer. All one neede to do was to buy a promotional pack of Lux soap.  Promotion:The first ambassador Leela Chitnis featured in a Lux advertisement which flagged off the Lux wagon. Sridevi. The 50 lucky winner and their spouse were flown down to Mumbai to live a day like Aishwarya Rai would. Aish karo contest. there are exclusive signed photographs of the couple to be won. the brand synonymous with beauty and stars. any number from “1 to 5”. all you need is to purchase Lux soap and complete a slogan to stake a claim to an evening full of glamour. She gave way to a galaxy of stars which include Madhubala. If the consumer found the “75 years” written inside the star. Nargis. Aishwaria Rai Bachchan. Juhi Chawla. The pack comes with a special scratch card.50.Sharmila Tagore. Now anyone can get a taste of stardom and rub shoulders with the power couple. The offer could be availed only on 100gm and 150gm pack of Lux soap. Rekha. Meena Kumari. They could also be given gift voucher worth Rs. Aishwarya‟s preferred designer and stylist. he or she will get a year‟s supply of Lux free. Well. If the consumer found written inside the star.000/.Production & material management Life cycle of Lux soap The first 10 caller of every week got a 30gm gold each.. Lux.

advertising campaigns on Lux have featured film stars across the nation. She has been signed as the face of the soap's new variant Lux Sandal & Cream. Whatever be the controversy. It gives me immense pride to endorse the new natural variant Lux Sandal & Cream. Priyanka Chopra and Katrina Kaif as the new brand ambassador of Lux soap. promising their beauty and complexion to common women . it was natural that the brand has built equity as the best beauty soap in India. it is good for me. who being a doctor. the brand a gain succeeded in 18 . toning and moisturising attributes. Paul Newman also has endorsed Lux soap which shows that Lux makes such stunts to excite the market. Deviating its tradition of roping Bollywood Divas. In 2005 Lux celebrated its 75th anniversary sparking of a controversy. "The credit of rooting the right beauty mantra goes to my mom. Lux advertisements through ages Lux campaigns have wooed millions of people over the decades. has always entrusted the beauty of my skin to sandalwood. IDEA:. NEW LUX:Actress Asin Thottumkal has joined the likes of Aishwarya Rai. which has celebrated beauty and glamour over the decades. An ode to their beauty. From the beginning.With top movie stars . Popularly known as the beauty soap of film stars." said Asin. Lux became a household name in the country. from Babita to Karishma and Kareena having endorsed the goodness of Lux over generations. as I truly believe in being beautiful the natural way.Production & material management Life cycle of Lux soap The last frontier for most actors aspiring to stardom is becoming a Lux ambassador. Lux has been an intimate partner of the brightest stars on the silver screen for decades.If it is good for star. due to its magical cleansing. this time none other than Shah Rukh Khan endorsed Lux. The ads created instant controversy with marketers discussing whether the brand has suddenly become MALE. an announcer of the ir stardom. "It's a beauty accolade to be associated with the legendary beauty brand Lux." she added.from Madhubala to Madhuri. The brand has outlasted many soaps.

They were paid Rs. This later moved into a transformation role of having a bath with Lux. All this stars have endorsed Lux in the past. The brand had a choice either to compromise on market share or dilute the positioning. as consumers were beginning to question if the film star actually used the brand. by using a leading film star of the time has fulfilled the consumers aspirations of us ing beauty soaps via the rationale if its good enough for a film star. This strategy -bring out the star in you -for the first time moves the brand away from the long running film star route. However the communication was slowly seemed to be losing relevance. the brand kept the consumers excited. South Indian:JAYALALITHA (1970) SHRIYA SHARAN Change in communication strategy Lux was always changing with the times. its good for me´. The film stars still features in the new communication but not as her gorgeous self but rather as an alter ego/projection of the protagonist. From the beginning Lux. The event was held at the Grand Intercontinental in Mumbai. It was being projected as an aspirational brand and the endorsements by stars further reinforced the positioning. The increasing competition in the soap category also forced Lux to rethink on its targeting strategy. The move away from the film star and her 19 . Kareena Kapoor. But in all these advertisements the celebrity never shadowed thebrand. Thus. Sridevi and Hema Malini graced the event and made it special. Juhi Chawla. Whether in terms of product or in terms of promotions. Some argue that HLL was testing a new positioning appeal to male users while others say that it was a one time endorsement to break the clutter. the global brand team for Lux developed a new communication strategy. Events: Lux celebrated 75 years of existence in a grand way by unveiling Shah Rukh Khan as their latest brand ambassador. which transports the user into a fantasy world of icons. A recent ad of Lux featured the golden couple Aishwarya Ra i Bachchan and Abhishek Bachchan.Production & material management Life cycle of Lux soap creating excitement in the market. film stars and fairy lands. for a few seconds of the entire ad. Several competitive beauty soap brands had begun advertising using similar methods of communication. In this context. for the first time the film star was used as a communication device and not as the main feature of the ad. Lux was initially a premium brand.25 crore for this ad.

an ordinary woman can impact her world with her own star quality.Production & material management Life cycle of Lux soap fantasy world to the regular Lux user with the focus on the protagonists star quality is a change from the norms set by the Lux advertising in the past. Its the world where Lux on her side. With the new communication strategy. HLL resorts to a male and metro sexual Shah Rukh Khan to revive Lux which turned 75 in 2005. Breaking away from tradition. the film star is used purely as a communication device to po rtray star quality in every Lux user. This idea-bring out the star in you -puts the consumer at the heart of brands promise. beyond bathing and bathroom to the world outside. This is a successful attempt to bring the brand closer to its users and give it a more useful and contemporary image. This can be significantly seen in the latest TV commercial of Lux Crystal Shine where Priyanka Chopra is portrayed as a normal woman. The promise goes beyond the functional deliverables of soap. 20 .

 Strong sales and distribution network backed by HUL.  Large market share. Fruit extracts. Saffron sandalwood oil and Honey).  Liquid body wash is currently in growth stage. international variant did not do well in the market  Not much popular in rural areas Opportunities: Soap industry is growing by 10% in India. 21 .)  Many variants (Almond oil.  Beauty segments compounded annual growth rate(CAGR) is very high.  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. Milk cream.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 reinvention is not carried out.  Mass appeal/Market presence across all segments ( 15% of soap market) Weakness: Mainly positioned as beauty soap targeted towards women.Lux should come out with more variant in this segments. Orchid extracts.Production & material management Life cycle of Lux soap Strengths:  Strong market research (Door to door sampling – once in a year – Rural and Urban area. lack unisex appeal  Some variation like the sunscreen.

Production & material management Life cycle of Lux soap Internal Competitor: Lifebuoy: 1895.to position the product as a best quality beauty soap in buyers mind.  Offering product in a different way  Offering: improved quality of the product.affordable price with high branding.  Market shares of Lux: 15%  Better positioning: market leader of beauty soap. 22 . price and quality.Better product attributes. 18% market shares 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 class people  Created good position: Buyers mind.

html http://adage.com/2005/11/what-is-currency-inflation. The Demand for this product is very much vulnerable in terms of pricing.com www.Production & material management Life cycle of Lux soap     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.asp http://themes.hul. like the beauty contest has been a milestone in attracting a huge number of customers.            www.html http://www.com/attachments/Kareena%20Lotus.com/brands/lux. Overall with its marketing activities LUX has been a successful brand.com www.mbaparadise.google. With six different fragrances.com http://sxxz.blogflux.businesswireindia.jpg http://marketingpractice.blogspot. Its promotional activities. Hindustan Unilever is providing LUX at a price which is affordable to most of the people in the country. three different sizes.hll.slideshare.com/2007/01/lux-celebrating-beauty.moneycontrol.com/garfield/article?article_id=116289 http://www. international standard and high quality design.blogspot. are now getting more beauty conscious.net/hit20032003/lux-presentation-presentation http://www.com 23 .html http://www.com/news_html_files/news_attachment/2009/HUL-RUQ3FY09-29-01-20091. has been able to penetrate the market. as a product. LUX has been highly successful over the years.com/theme/5483.pdf  www. Beauty soap is an uprising product in India as a greater portion of the population. both male and female.fmcg. Its distribution process is highly efficient. As a multinational company Hindustan Unilever with heavy promotional activities.

Production & material management Life cycle of Lux soap 24 .