BRAND AUDIT

JUNE 25, 2021

SUBMITTED BY:
1. Mian Uzair Ijaz (Group Leader)
2. Ahmed Saeed Ahmed
3. Shanzey Ahmed Kiyani
4. Ammar Khalid
5. Muhammad Suleiman Asim

1
Contents
Our Team ........................................................................................................................................ 4
Introduction: .................................................................................................................................... 5
Vision: ............................................................................................................................................. 6
Logo: ............................................................................................................................................... 6
Packaging: ....................................................................................................................................... 6
Target Market – Consumer Profile ................................................................................................. 7
Demographics............................................................................................................................. 7
Psychographics ........................................................................................................................... 8
Product Positioning .................................................................................................................... 8
Product – Marketing Mix ........................................................................................................... 8
Place – Marketing Mix ............................................................................................................... 9
Price – Marketing Mix ............................................................................................................... 9
Promotion – Marketing Mix..................................................................................................... 10
SWOT Analysis of LUX:.............................................................................................................. 10
Strengths ................................................................................................................................... 10
Opportunities ............................................................................................................................ 10
Weaknesses .............................................................................................................................. 11
Threats ...................................................................................................................................... 11
Market Share of LUX ................................................................................................................... 11
Competitor Analysis ..................................................................................................................... 12
Porter’s Five Forces ...................................................................................................................... 14
BCG Matrix .................................................................................................................................. 16
PESTEL Analysis: ........................................................................................................................ 17
Marketing Mix .............................................................................................................................. 19
Product: .................................................................................................................................... 19
Price:......................................................................................................................................... 19
Place ......................................................................................................................................... 20
Promotion ................................................................................................................................. 20
Brand Personification.................................................................................................................... 21

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Offline vs. Online marketing efficiency evaluation ...................................................................... 21
Chaand sa roshan chehra: ......................................................................................................... 22
Lux Style Awards: .................................................................................................................... 23
Lux “Fans of each other”: ........................................................................................................ 24
Marketing Communications.......................................................................................................... 25
Brand Elements ............................................................................................................................. 25
Logo: ........................................................................................................................................ 25
Theme line:............................................................................................................................... 26
Packaging: ................................................................................................................................ 26
Sound:....................................................................................................................................... 26
Smell: ....................................................................................................................................... 26
Financial Ratios: ........................................................................................................................... 27
Key information regarding Lux (Beauty and Healthcare) ............................................................ 30
Major Contracts ............................................................................................................................ 33
Brand Recall.................................................................................................................................. 34
Customer lifetime value ................................................................................................................ 34
Brand Activation: 3-D MODELING ............................................................................................ 36
Billboards: ..................................................................................................................................... 36
Mall activation: ............................................................................................................................. 37
Round-about Activation: ............................................................................................................... 38
Store Activation: ........................................................................................................................... 39
Brand Extension: .......................................................................................................................... 40
New Product ‘Lux Shampoo’:.................................................................................................. 40
Target Market & Product Line: ................................................................................................ 40
Marketing Strategy: .................................................................................................................. 40
Brand Elements: ....................................................................................................................... 41
References: .................................................................................................................................... 42

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Our Team OUR TEAM

UZAIR IJAZ AHMED SAEED

SHANZEY AHMED SULEIMAN ASIM

AMMAR KHALID

4
Introduction:

Lux is a sub brand of Unilever, which is one of the leading multinational company, originated

from the United Kingdom. Unilever acquires more than 400 brands. LUX was introduced in

1899 with the name of “Sunlight Flakes” which was a laundry soup. Later in 1900, the name was

changed to from “Sunlight Flakes” to “LUX”. In 1925, they introduced a new product, premium

fragrance soups and it became a huge success. Today, LUX is a personal care brand and it is

available in more than 100 countries. Their major revenue generation is from India, Pakistan,

Bangladesh, Brazil, South Africa and Thailand. Other than these countries, they do enjoy a good

market share globally.

The brand has a very limited product line which includes body wash, soups, bath additives etc. In

Pakistan, LUX has only introduced their soups and body wash. Their target audience is females

and in order to attract their potential customers they have made their products likewise. It

differentiates itself from all the other brands due to its unique fragrances and that is their USP.

They not only offer fragrance but also skin care ingredients in their soups which makes the skin

moisturized and soft. Since the beginning, LUX has used influencers and celebrities for its

endorsement. In Pakistan, many female celebrities like Saba Qamar, Mehwish Hayat and other

actresses in their advertisements. Similar is the case with the other countries. The advertisements

are designed to define the attraction of female beauty and fragrance after the use of LUX. The

image they are trying to create of their brand is that with the use of LUX, one can get as a

beautiful and attractive as a celebrity.

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Vision:

“Our vision is to grow our business, while decoupling our environmental footprint from our

growth and increasing our positive social impact.”

Logo:

The logo of LUX is simple typography. As they want to position themselves as a premium brand,

hence the logo is colored to be GOLD. And the logo has a smooth texture that reflect the

smoothness the product provides to its customer.

Packaging:

The packaging is kept simple along with elements that explains their variant of the product. With

the help of sober colors like black and red, Lux has tried to give an elegant touch to its

packaging.

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Target Market – Consumer Profile

Gender: Female

Age: 16 to 35

Income: Middle Income Group (Low

Demographics Priced)

Socio Economic Class: Category A to C

(Urban and Semi Urban – Middle and Upper

Middle Class)

Frequent Romantic Movie Watchers

Advertisement driven

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 Psychographics Status conscious

Looks conscious

Liking for fragrance of LUX

Beauty Soap for Women

Converting it to a Soap for couple

Reliable and Trustworthy brand for

Product Positioning Consumers

Unique Selling Proposition: Glamour and

Beauty

o Soaps

o Body Wash

o Bath Additives
Product – Marketing Mix
o Hair Shampoo & Conditioners

o Shower Gel

Head Office: Thailand

Manufacturing Plants: 71 places all over

the world

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Place – Marketing Mix Huge Market Share: India, Pakistan,

Bangladesh, South Africa, Brazil and

Thailand

International Market: China, Japan, UK,

US, Argentina

Competitive Pricing Strategy I.e.

Reasonable and Affordable

Price – Marketing Mix
Promotional Price Strategy is being used

like discounts, coupons while buying in

bulk

Mediums: Television, Newspapers,

Magazines, Billboards and Social Media

Platforms

Print Media: Magazines like Ladies Home

Journal

Social Media: Facebook, Twitter etc.

Promotional offers like meeting celebrities,

offering gold coins

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 Sponsoring various television shows like

Lux Style Awards in Pakistan, Dance India

Promotion – Marketing Mix
Dance in India etc.

Brand Endorsement/Ambassadors: Saba

Qamar, Mehwish Hayaat, Fahad Mustafa,

Kareena Kapoor, Shahrukh khan, Deanna

Durbin, Samantha Eggar, Sandra Dee,

Natalie Wood, Deepika Padukone,

Aishwarya Rai, Paul Newman

SWOT Analysis of LUX:

Strengths

• Owns big market share globally

• Acquires strong brand image

• Spends a lot on marketing

• Offers a lot of variants in the products to capture large audience

• With innovation, they keep updating their products and packaging

• Acquires deep insights of their target audience

Opportunities

• They can target men with a new variant of their product

• They can introduce more variants of their products according to the trends like organic

soaps etc.

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 • Liquid soaps and body wash needs to be marketed well in several markets

Weaknesses

• Only targeting Upper-Upper and Upper-middle class

• No hold in rural areas

• Tried to target men in Indian market but ended up in a controversy.

Threats

• A lot of competitors in the market

• Sister brands like Dove and Pears might get affected

• Continuous change in the market trends

Market Share of LUX

In Pakistan, there are only seven major producers of beauty soap. With its world-famous brand

LUX, Unilever Pakistan Ltd is involved in the industry. Unilever Pakistan, with a market share

of about 43 percent, is the market leader among these companies. Lux has a 43 percent market

share due to its costs, which are closely related to market share. Lux is a commodity that

provides quality at a reasonable price. Lux is well aware that if they raise the price of their bar

soap, customers will turn to other beauty soaps that compete with Lux but are less expensive.

Lux offers the highest value for money when it comes to efficiency.

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Competitor Analysis

Palmolive

Colgate Palmolive Pakistan, a local consumer goods company is the subsidiary company of an

American multinational company Colgate Palmolive and Pakistani Company Lakson Group.

Founded in 1977, the company is based in Karachi, Pakistan. It operates in oral, personal and

fabric care sections of consumer’s daily used goods.

Palmolive, when introduced locally in 1980’s, being a popular brand all around the globe,

unfortunately failed to make a big impact on the local market. The aggressive marketing

technique used by LUX was one of the main reasons behind its failure. Although Palmolive

failed to cover the top slot, it still covers a huge audience locally and globally both.

Palmolive has a huge range of products which includes shampoo, bar soaps, conditioners, body

wash and men’s care.

Dove

Dove is a personal care brand established in 1957 and owned by Unilever US. Their products are

manufactured and sold in more than 80 countries globally. They have a wide range of products

for men, women and children.

LUX is an internal competitor for Dove as both of the brands are owned by Unilever. Dove has

been targeting women earlier with different types of marketing campaigns, now their main target

to focus on the male customers and increase the brand awareness and healthy public relations.

Dove has three different types of beauty soap bars with three different types of skin moisturizing

formulae.

1. Dove White Beauty bar

2. Dove Pink Beauty bar

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 3. Dove Fresh Moisture Beauty bar

Lifebuoy

Lifebuoy is being operated for more than 110 years worldwide under Unilever. The brand was

established in 1894. In many of the countries such as Pakistan and India, Lifebuoy is a leading

brand in the market. The aim of the brand is to provide accessible hygienic and healthy solutions

to people in affordable prices so that it can be in the reach of maximum consumers.

The brand manufactures number of products such as bar soaps, shower gels, hand sanitizers,

shampoos and talcum powder. All of the products are safe to use on every type of skin and

trusted by the customers, which helps Lifebuoy in building a huge consumer base.

Lifebuoy tends to provide best quality products in best price range. This aim also helps the

company to grow and strengthen the customer relation.

Dettol

Dettol was introduced in 1933 as an antiseptic liquid. But over the time it multiplied its product

range into number of products like soaps, hand washes, sanitizers and shaving creams.

It has been accepted as a fighter with 100% result against germs with full protection for a family

as a whole. Due to its repute as a germ controlling agent, people tend to opt Dettol products in

their daily routine to stay hygienic and germ free.

The bathing soap can directly compete LUX in this regard as the consumers may prefer a bath

soap with a germ-killing formula instead of a simple soap bar with an attractive packaging.

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Ponds

Pond's competes in the market with its Skinnovation and products including Gene Deep Beauty

for women to lighten dark spots with GenWhite Technology, Intelligent Aging with Intelligent

Pro cell complex for women, and Facewashes with Activated Carbon for both men and women.

This innovative use of scientific research and development, as well as its integration into its

products, makes it a market competitor.

Ponds offers products ranging for middle and upper middle class. Consumer groups are targeted

with the products as per their lifestyle, according to their age and gender.

Porter’s Five Forces

Here we are going to discuss Porter’s Five Forces in connection with LUX soap:

1. Competitive Rivalry:

LUX has a big market share in the local market. It has managed to do so even between

big brands like Dove, Pears, and Palmolive etc. The overall profits of the industry are

shared between the top players and the gain of one translates to the loss of the other

because of the nature of industry. This makes the competition even tougher between the

various manufacturers. Despite the tough competition, LUX is fighting earnestly to retain

its market share and to increase its market growth even during the pandemic.

Dettol and other antiseptic soap competitors caused a decline in LUX profit level due to

the pandemic. LUX is operating across the globe and is facing competition from different

competitors in different markets.

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2. Buyer Bargaining Power:

Customers are the ultimate kings and the price level of LUX is a bit high making it out of

reach of some consumers. Consumers are opting for cheaper, more accessible brands.

The buyers can stop LUX from charging high rates because of the vast number of options

available to them.

3. Bargaining power of suppliers:

As the number of suppliers in the soap industry are numerous, the overall competition

between the suppliers is high which reduces the bargaining power of the suppliers.

Because of this LUX enjoys suppliers that provide good quality raw materials at a

bargain. The overall supplier pressure and power is limited and low.

4. Threat of substitutes:

It goes without saying that LUX is facing stiff competition from all sides as there are a

number of direct and indirect substitutes for LUX. The whole pandemic situation has

brought forward substitutes like Protex and Safeguard that are causing issues to LUX.

Although LUX itself has a huge chunk of market share the substitutes are quickly

catching up. Part of this threat is also because of the high price point of LUX.

5. Threat of new entrants:

Lux is facing a high threat from new entrants in the market as the entry to market is easy

and accessible to all kinds of sellers. Even importing and selling is an option these days.

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 Companies can source materials from various other countries where prices are cheaper

and sell at a competitive price just like LUX.

BCG Matrix

1. Dogs:

LUX hand wash is the dog for the brand as it never took off and even LUX looks like it is

trying to distance itself from the failure of the hand wash lineup. It has minimal to no

growth and has no market share either.

2. Question Mark:

Body wash market is a sprouting market in Pakistan and LUX is not viewed as a viable

option for that. The Body wash of LUX is the problem child as the market has a very

high potential but the body wash from LUX has failed to live up to it.

3. Stars:

The Velvet Glow series of LUX is a huge success and is the rising star as it packs vitamin

E and jasmine which people are looking for in skin care products these days. It is quickly

finding its way to the top and is the star performer with a high market share and high

growth.

4. Cash cows:

LUX has been selling soap bars in the market for quite some time now and their soap

bars are a domestic necessity for households that have been using LUX for some years

now. The soap bars are the cash cows for LUX as the growth is not that much but the

share held by LUX is enormous and LUX is using that share to earn money.

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PESTEL Analysis:

Political Factor:

Lux is one of the major products of Unilever which is dependent on the laws and administrative

strategies of the United Kingdom European Commission. Since it is a multinational company,

the political stability and instability of the country they are operating from as well as the policies

from around the world affect them. For Example, during the liberalization period in the 1991,

India opened its market, from which Unilever took advantage and expanded their market share

and business in India. Therefore, when it comes to the political factors, Lux should not engage

themselves with any political party as they are completely independent entity and any type of

engagement with any political party may cost them.

Economic Factor:

Since it has been stated that Lux is affected by the economic and political factors of both the

country they are operating from and the conditions of the world, therefore, any economic

stability or instability may directly affect them.

Social Factor:

Ever since Lux was launched in India, it marketed well and positioned itself as a brand that cares

for its customers. As Lux is a FMCG company, people are its main resource, therefore in order to

stay connected it took various social initiatives as a part of their campaigns such as Shakti, to

empower women. Another initiative was by its parent company; Lifebuoy. The campaign was

about promoting cleanliness among one another through its hand wash program.

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Technological Factor:

Over the past few decades, technology has played a key role in the competitive firms, and

changed the industry from simple to innovative. Similarly, Lux took the advantage and launched

glamorous and eye-catching ads in order to attract more customers and target audience on a

larger scale. The percentage of online deliveries have been increased of the FMCG products and

considering this during the time of e-commerce, Unilever should consider to launch their own

website and set up an online delivery system so that it may give them a competitive edge.

Legal Factors:

As Lux is a multinational company, it considers and follows all the legal rules and regulations set

by the local governing bodies and by the local government. Although the company has its setup

all over the world, they are bound to follow the legal requirements of the country they are

operating from.

Environmental Factor:

Lux has been a part of scandals like sabotaging or affecting the environmental wellbeing of its

local area. Lux has been held accountable for throwing their waste material in one of the forest

areas, because of which Lux has been involved in legal battles and eventually had to shut down

the factory and paid heavy fines. Since it is a FMCG product, it produces harmful chemicals

which is not eco- friendly. Hence, Lux may produce biodegradable products in order to keep

itself away from legal matters.

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Marketing Mix

Lux as a brand has tasted success and is one of the best performing products of Unilever. The

perfect mix of marketing strategies has helped the brand reach unprecedented heights and

success.

The 4Ps (Product, Price, Place, Promotion) have helped Lux achieve business goals and

objectives and have helped shape the strategy.

Product:

Lux has a range of products that are aimed at offering all kinds of beauty products including

soaps, hand washes, shower gels, hair conditioners, and other bathing products. All products are

offered in different sizes to suit the needs of the consumers soap sizes range from small, medium

and large soap bars. Similarly, there are options for various colors and fragrances. There are

more than 20 variants for each unique product. Lux products face stiff competition from Camay,

FA, Palmolive, and Dove. New entrants like safeguard, Protex and old veterans like Dettol have

stepped in owing to their anti-septic properties during the COVID-19.

Price:

The pricing of Lux products has been done with middle-class people in their minds. Lux is

economical as compared to the luxury brands out there and Lux offers comparable quality to

them. The soaps are being offered for Rs.50-70 and shower gels are cheaper than offerings from

comparable brands.

Lux has a great brand image and the price perfectly complements it and helps Lux retain its

position as a market leader in the Pakistani middle-class families’ market. Even the newer

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offerings from the company are either priced penetrative or very competitive pricing strategies

are used.

Place

This is the stronghold for Lux as it has one of the best distribution networks as Unilever places

the product at every nook and cranny of the country. The distribution is mostly through 3rd

parties that have built an excellent network for placing all Unilever products in the reach of

consumers. The product is first sent out to the wholesellers who then send them out to numerous

retailers. The retailers place the product in the hands of the ultimate consumers. Lux products are

even available at popular E-commerce platforms like Daraz.pk.

The extensive distribution network ensures that the reach of Lux products is as wide as possible.

Promotion

This is something that only some brand as big as Lux can pull off. Signing stars like Mahira and

Fawad Khan, the brand resonates well with the fans of the involved stars and you can see the ads

placed all over the country at the most premium billboards and at the same time TV commercials

are run that provide the sound in your mind when you see these billboards. Lux ambassadors

include Mahira Khan, Maya Ali, Saba Qamar, Reema and many more. The adverts and

promotional material appears in TVCs, print media, online ads etc. and leaves everyone one with

a beautiful feeling.

For a brand of size of Lux, the spending is huge and that is shown in the sales as well. There are

some unique promotional campaigns as well like the Lux coin and turning in a wrapper of the

soap for something else of value. It again and again reinforces the image in the minds of the

consumer that a little use of the soap and make you attractive and appealing with the ‘Zara sa

Lux’ ad campaign.

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Brand Personification

Lux was initially marketed as a toilet soap and as a laundry product around the world. Where its

competitor was lifebuoy. But later, it has become one of the luxurious brands competitive to

Olay, Dove etc. Lux has now branded itself as a beauty soap whose brand personality is of four

traits i.e., excitement, competence, ruggedness and most important sophistication. Consumers

think that lux is low on ruggedness which is perfectly positioned as it positions itself as a soft,

beauty soap for women, which indicates soft skin. Since lux has always endorsed itself with

female celebrities, it created an image as a product for women only but for past few years, many

famous male celebrities have been the face of lux in various campaigns and advertisements such

as Fawad Khan, Fahad Mustafa and Ali Zafar have been doing commercials while from

Bollywood, Shahrukh Khan and Abhishek Bachchan have been associated with the soap.

Over the years, lux has been featuring famous celebrities from both India and Pakistan and now

it has changed its perception as a unisex product. Lux has been a part of many major projects,

one of them is sponsoring style awards i.e., “lux style awards” which objectively targets the

glamourous and elite class of Pakistan. However, the product which was once an ordinary soap

has obtained a good position in the market and in the buyer’s mind through improved and better

product price and quality, attributes, and offering it in a different way than its competitors.

Offline vs. Online marketing efficiency evaluation

Lux has always been hosting various campaigns and shows that inspire women and their beauty

and encourage women empowerment. There are a number of successful projects lux organized.

Although the promotion of new product has always been done through the basic method i.e.,

advertisement either through TVC or through magazines.

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 Chaand sa roshan chehra:

Their latest campaign “chaand sa roshan chehra” was basically an inspiration for many women

that the product depicts moonlit glowing face and by choosing Kareena Kapoor and Saif Ali

Khan (from India) and Fahad Mustafa and Mehwish Hayat (form Pakistan) gave this campaign a

unique sense of empowerment.

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 Lux Style Awards:

Lux Style Awards is one of the initiatives that recognized celebrities and their work in Pakistani

television and film industry. By introducing awards show, the product successfully positioned

itself as a luxury beauty soap and gave its customers an impact of richness and uniqueness.

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 Lux “Fans of each other”:

Lux recently took a great initiative where it featured three of the most glamourous and

unapologetically famous female celebrities of Pakistan. The idea of inviting Reema Khan,

Mahira khan and Maya Ali was to encourage every female to support and love one another and

to celebrate the past, present and future of our industry.

Lux has always positioned itself as a luxurious brand which brings the best of beauty for women.

For some people it is not just a soap, it represents them as a strong empowering woman that too

with an experience of long lasting and rich fragrances. The purpose of Lux is to brand

themselves as a luxury beauty brand and to add value through new campaigns to make sure that

Lux stays on top of the market.

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Marketing Communications

The marketing communications are designed for LUX for a very specific audience and it is well

designed. On analyzing critically, we have found that the main element of their marketing

communication is the celebrity endorsement. Targeting woman and focusing on making them

beautiful has found to be the key elements of their communications. Recently, due to Covid-19,

they have paid attention to the killing of germs in order to stay in the competition but before this,

they have never designed such campaign. Lux has also been spreading the message to accept the

natural beauty and to stop using filter and keep things natural. Their recent campaigns were

“Chand Sa Roshan Chehra”, “Khoobsurti Se Kya Sharmana”, in which Mehwish Hayat and Saba

Qamar were the celebrities they chose to endorse their brand as these celebrities are leading in

the film industry and they have been the ones whom women follow a lot.

Brand Elements

LUX has been following the footsteps to become a powerful brand. A powerful brand is the one

that has strong identity. The brand elements of LUX are as follows:

Logo:

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 Theme line:

The theme lines are mainly associated with the campaigns. The two latest theme lines are:

“Chand Sa Roshan Chehra”

“Khoobsurti Se Kya Sharmana”

Packaging:

The packaging is kept simple along with elements that explains their variant of the product. With

the help of sober colors like black and red, Lux has tried to give an elegant touch to its

packaging.

Sound:

Lux uses exciting music to complement their brand and maybe to grab the attention of the

consumers. The music is elegant yet it has an excitement in it which discriminates the brand

from the advertisements.

Smell:

As the product is mainly focused on the smell, hence in all the marketing campaigns, the element

of smell has been highlighted. Celebrities smelling themselves of a side actor pretending to smell

the fragrance of lux has been a vital element of their advertisements.

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Financial Ratios:

CURRENT RATIO
Current Ratio

0.77 0.78
0.72
0.68
0.63

2015 2016 2017 2018 2019

In the year 2015, the current ratio was reported 0.63, which increased to 0.78 in the year 2019.

The current ratio is hence, in constant growth with positive change in the ratio. This means that

Unilever has been able to pay down its debts and the cash collection has been improved.

GROSS PROFIT MARGIN

Gross Profit Margin

0.62

0.515

0.43 0.44 0.44

2015 2016 2017 2018 2019

27
The trend of Gross Profit Margin has been decreasing since 2015 till 2017 with the values 0.6 to

0.4 respectively. And from 2017 to 2019, the Gross Profit Margin has been constant. Overall, the

Gross Profit Margin is low, which could be a result of low sales or low profits on sales. Unilever

should be careful on these values as low margins may affect in other operations of the company.

NET PROFIT MARGIN

Net Profit Margin

0.19

0.12 0.12
0.11
0.1

2015 2016 2017 2018 2019

Net Profit Margin have been in growth from year 2015 to 2018, with the values 0.10 to 0.19.

However, after 2018, the value has dropped back to 0.12. This change is alarming and the

company must focus on this in order to refrain from further loss. This indicates that Unilever is

not effectively converting its sales into profits, due to which the Net Profit Margin is decreasing.

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 EARNING PER SHARE (EPS)
Earning per Share (EPS)

3.49

2.15 2.15
1.83

0.17

2015 2016 2017 2018 2019

In the year 2015 and 2016 the EPS is increasing by 0.5 in a consistent manner. This indicates that

investors of Lux were able to pay more for the company’s share. While from 2016 to 2017 the

EPS increased from 1.0 i.e., from 1.5 to 2.5. The year 2018 had the highest EPS which means that

the campaigns of Lux were successful and investors had been paying for the company’s share.

While the decline in EPS from year 2018 and 2019 shows that Lux had decline in the stock price

and investors weren’t able to pay for the company’s share.

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Key information regarding Lux (Beauty and Healthcare)

SHARE OF LUX (SKIN CARE) IN TOTAL

REVENUE
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Percentage of Revenue

2017 2018 2019

Skin care (Lux) made up 8 percent of the total revenue for Unilever. This is a rise over 2018

when it made up 7% of the revenue and in 2017 it made a meagre 6% of the total revenue. The

upward trend shows the improving position of LUX (Beauty and Personal care) as compared to

other divisions of the company.

Although the percentage of revenue is less than 10% the beauty & personal care makes up 52%

of total operating profit. This shows that the division is pivotal as it would have the least costs as

it looks to take the crown by contributing high percentages towards the profit.

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 OPERATING MARGIN FOR BEAUTY AND
PERSONAL CARE
23%

23%

22%

22%

21%

21%
Operating Margin

2017 2018 2019

The underlying operating margin for 2017 was 21.3%, for 2018 was 22.0%, and for 2019 was

22.7%.

OPERATING MARGIN MILLION OF EUROS

FOR BEAUTY AND PERSONAL CARE
5100.00
5000.00
4900.00
4800.00
4700.00
4600.00
4500.00
4400.00
4300.00
4200.00
4100.00
Operating Margin EUROS (M)

2017.00 2018 2019

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The operating profits for the year 2019 stand at 4960 the operating profits for the year 2018

stands at 4165 million while the underlying operating profit hovers around 4543 million. The

depreciation and amortization take up 686 million.

On the contrary in 2017 the operating profits stood at 4140 million while the underlying

operating profits were 4412 million. The depreciation and amortization take up 641 million.

The Depreciation and amortization expenses for the beauty and personal care (Lux) are also

seeing a slight increase over the years this may be because of increase in the value and amount of

assets held and used in the department.

DEPRECIATION AND AMORTIZATION FOR

BEAUTY AND PERSONAL CARE
700
690
680
670
660
650
640
630
620
610
Operating Margin EUROS (M)

2017 2018 2019

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Major Contracts

1. CHAAND SA ROSHAN CHEHRA WITH LUX

2. LUX SALUTES TODAY'S SUPERSTARS

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3. STAY SAFE, STAY BEAUTIFUL!

Brand Recall
By conducting a primary research of different focus groups, these traits can be seen as Brand

Recall for LUX:

• Feminine
• Beauty Orientated
• Sophisticated
• Celebrities (Fancy)
• Softness
• Elegant
• Fragrance

Customer lifetime value

CLV= (Annual Revenue per customer x Customer relationship in years) – Customer Acquisition

Cost

= (21620 x 2.2) – 13198

= Rs 34366

Assumptions:

Current Population of Pakistan = 225,040,368

Targeted Audience = 20% of total population = 45008073

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Market Share of LUX= 22% of the population

Total Revenue of the Business = 11489 M

Total Number of users = 99901776

Annual Revenue per customer = 21620

Customer relationship years = 2.2

Marketing and Sales Cost (15% on new customers) = 242 M

New customers = 3446611

Acquisition Cost = 13198

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Brand Activation: 3-D MODELING

Billboards:

Overview: Billboards are one of the most traditional methods to reach out to the audience. Since

it has more reach than other methods therefore we are using billboard for one of our campaigns.

Our billboard will be placed at the busiest roads of Lahore where we can target maximum

audience. The campaign we’ve designed is “Embrace your beauty” and the main concept behind

this campaign is to allow both genders especially females to embrace their natural look the way it

is without any sort of beauty products or surgeries. Another perspective of this campaign is to

break the stereotype in Pakistan that beauty lies only in fair complexion but in real every person

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is beautiful in their own skin. Our campaign is against the color discrimination therefore the

models for this campaign shows the diversity of skin complexion.

Location: The main locations on which the billboards will be placed are Ghora Chowk, Allah-

Hu roundabout, Sherpao Bridge and DHA Y block. Since, these areas are always jam packed

therefore we get maximum reach from our target audience.

Budget Allocation: 30,00,000/- to 35,00,000/-

Mall activation:

We are going to set up an engagement system to attract and engage maximum audience. The set

will have two portions i.e., a mirror which let our audience to take pictures in the fancy mirror

above which the caption is written “Embrace your beauty”. The other portion is reserved for

fragrance testing of our beauty soaps as fragrance is our USP.

Location: These sets will be placed in the first floor of the two major malls of Lahore i.e.,

Emporium Mall and Packages Mall. So, each person who enters the mall is attracted by it.

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Budget allocation: 280,000 to 350,000/-

Round-about Activation:

Overview: Lux associates itself with flowers and good fragrances hence our plan is to attract our

audience and to deliver the message of lux’s association with flowers. For this we have planned

to set up a bunch of flowers in the spring season at Liberty roundabout. In the middle of these

flowers there will be a huge bottle of Lux Body Wash. This campaign will not only attract

existing customers but also it will increase brand awareness as our product LUX body wash has

very low awareness.

Location: The location of this campaign will be at Liberty roundabout where it will engage our

customers and other audience too.

Budget Allocation: 50,000/- to 100,000/-

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Store Activation:

Overview: The places where our products are sold the most are grocery stores and super marts.

Hence, we plan to setup our own product display kiosk where both our products i.e., soaps and

body wash will be placed.

Location: The plan is to place these product displays kiosk in the most popular stores of Lahore.

Which are as follows:

1. In all five branches of Carrefour

2. Both two branches of Metro

3. And in Imtiaz Super market

4. All branches of Alfatah

Budget allocation: 250,000/- to 450,000/

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Brand Extension:
New Product ‘Lux Shampoo’:
In brand extension phase, we are going to extend our product line from Soap, body wash, hand

wash to Shampoo. LUX will enter the Shampoo Market and compete with the brands like

Sunsilk, Clear, Conatural etc.

Target Market & Product Line:

Target Market for this new product will be same as other products as LUX has always been a

brand for women. Across the world consumers have been struggling when it comes to hair care

and not knowing what product is best for their hair. For this purpose, we are introducing organic

shampoo range that are purely silicon and sulfate free. These products will not only bring shine

to hair but our unique range will help protect them too. While entering into the market of

shampoo, Lux Organic Shampoo rang will compete with Sunsilk, Dove, Garnier and Conatural.

The ideology is a mix of modern aromatherapy, exotic essences and Ayurvedic. All of the

ingredients used are purely natural, where our focus will be its quality, quantity and consistency

collectively. While our product’s manufacturing unit will be in Pakistan but raw material will be

outsourcing from other countries including Africa, US and India.

Marketing Strategy:
From the campaign of “ZARA SA LUX” to “CHAAND SA ROSHAN CHEHRA”, Lux has

always been considered as the brand of celebrities. Using the same technique, LUX will hire

brand ambassadors like Mahira Khan, Dananeer, Mehwish Hayat, Saba Qamar for our

Shampoos. LUX has been always a women-oriented brand so, it will continue being a women-

oriented brand for its new product as well. Besides that, different Ad campaigns will run across

different platforms like OOH, Social Media Advertising and TV and Print Media to get attracted

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and recognized by the people. Brand Activation will be as same as other product line but

Shampoo will be highlighted more as a new and natural product.

Brand Elements:

Packaging:

Tagline: “Aghaaz Khoobsurti Ka”

Smell:

Lavender, Villa, Aloe Vera, Shea Butter, Tea Tree, Keratin and Argon Oil, Celebrities smelling

themselves of a side actor pretending to smell the fragrance of lux has been a vital element of

their advertisements

Sound:

Sound will same as for the other product line. Lux uses exciting music to complement their

brand and maybe to grab the attention of the consumers. The music is elegant yet it has an

excitement in it which discriminates the brand from the advertisements.

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References:
• https://www.mbarendezvous.com/general-awareness/lux-a-success-story/
• https://en.wikipedia.org/wiki/Lux_(soap)
• https://www.unilever.pk/about/who-we-are/our-vision/
• https://dokumen.tips/documents/swot-analysis-of-lux.html
• https://www.slideshare.net/RohitAgarwal86/lux-hul-positioning-of-lux
• https://www.assignmentpoint.com/business/analyzing-the-market-of-lux.html
• https://www.studymode.com/essays/Lux-Target-Audience-40261954.html
• https://www.marketing91.com/marketing-mix-lux/
• https://www.mbaskool.com/marketing-mix/products/17251-lux.html
• https://www.mbaskool.com/pestle-analysis/companies/18109-
lux.html#:~:text=Lux%20PESTLE%20Analysis%20examines%20the,the%20business%
20of%20the%20brand.
• https://www.marketing91.com/marketing-strategy-of-ponds/
• https://brandyuva.in/2019/08/marketing-strategies-of-
lifebuoy.html#:~:text=Lifebuoy%20is%20a%20leading%20soap%20brand%20that%20
manufactures,shower%20gel%2C%20hand%20sanitizers%2C%20and%20exclusive%20
men%E2%80%99s%20range.
• https://www.ukessays.com/essays/marketing/lifebuoy-is-the-worlds-number-one-soap-
marketing-essay.php
• https://www.unilever.com./
• https://www.academia.edu/9498831/DOVE_ASSIGNMENT_2
• https://www.ravimagazine.com/marketing-analysis-of-colgate-palmolive-pakistan/
• https://www.adspace.pk/spaces

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