Marketing Project Report

on Lux Soap

By:
Amit Kumar
Sinha
PGDMRM-002
IPE, Hyderabad
Contents:
Company Profile HUL
Distibution Channel - HUL
Product Mix HUL
Overview Lux Soap
Marketing Mix
SWOT Analysis
Competitor Analysis
Market Segmentation
Recommendation
Reference
Company Profile - HUL
 Company Profile - HUL
A 52% owned subsidiary of Anglo Dutch giant Unilever.
India 1888
India largest FMCG company
Touching 2 out of 3 Indian consumer
20 distinct categories Home and personal care
products, food and beverages.
HLL HUL
100 factories India Manufacturing its diverse
product range
Headquarter: Mumbai
Market share Toilet soap category 54.3%
Revenue Percentage:
Distribution Channel - HUL
Distribution Channel - HUL
2000+ Suppliers and associates

4000 Redistribution stockists

Covering 1 million retail outlets

Reaching 250 million rural consumers

Product Mix- HUL
The width of the HUL
Product
mix:
The width of the product mix refers to the
number of different product line the company
carries
E.g:
Personal wash
Laundry
Skin care
Oral care
Deodorants
Colour cosmetics
Ayurvedic personal and health care
 Shampoo
Tea
Coffee
Foods
Ice cream

Width = 12
The lenght of the HUL
Product
mix:
The Lenght of the product mix refers to the
total number of items in the product mix.
E.g:
Personal wash: Lux, Lifebuoy, Liril, Hamam,
Breeze, Dove, Pears, Rexona
Laundry: Surf excel, Rin, Wheel
Skin care: Fair & Lovely, Ponds, Vaseline,
Aviance
Oral care: Pepsodent, Close up
Deodorants: Axe, Rexona
Colour cosmetics: Lakme
Ayurvedic personal and health care: Ayush
 Shampoo: Sunsilk, Clinic
Tea: Broke bond, Lipton.
Coffee: Bru
Foods: Kissan, Annapurna, Knorr
Ice cream: Kwality walls

Width = 30
 The Depth of the HUL Product
mix:
The depth of the product mix refers to the number
of variants of each product offered in the line
E.g: If close up toothpaste comes in three formulation
and in three sizes, close up has a depth of 9 (3*3)

The Consistency of the HUL

Product mix:of the product mix refers to how
The consistency
closely related the various product lines are in the
use, production requirement, distribution channel or
in any other manner.
HUL Product line are not consistent because of its
large width.
Overview : Lux Soap

1916 Laundry soap

1925 Bathroom soap

India 1929

First brand ambassador: Leela Chitnis

(1929)

Market share is almost equal to Lifebuoy

Marketing Mix:
Product:
Product Classification:

Tangible
Non durable good

Lux and other soaps fall into the

category of convenience good.
Product Life Cycle:

Maturity Stage
Prominent Variants:
Lux almond
Lux orchid
Lux fruit
Lux saffron
Lux sandalwood
Lux rose
Lux international
Lux chocolate
Lux aromatic extracts
Lux oil and honey glow etc.
Logo:

Labelling:
Lux trade character or logo is
present prominently in the package

Female model

Displayed graphically Key

ingredients
Packaging:
Different colors Different
variants( Saffron Saffron variants &
Pink Rose extracts etc. )

Package size 100gm, 120gm, 150

gm

Launched Mini Lux 45gm - Rs 5

Price:
Competitive prices: Neither high
nor low
Place:
HUL distribution network key
strength (Which helps reach out its
product across the length and width
of the vast country)
2000+ Suppliers & Associates
7000 Stockists
Direct coverage in over 1 million
retail outlets
 Network:

Factory Company warehouses

Distributor Market

Factory Wholesaler & Big retailers

(Bulk orders) 30% Sales
Promotion:
Active since 1929
 Featured all top actress of their times.
 Idea: if it is good enough for a film star, it is good
for me.
First Male Brand
Ambassador:
South India:
1970 Jayalalitha
Shriya Sharan
Sales Promotion:
Lux gold star offer: 22 Carat Gold
coin in the Soap First 10 caller
(Extra 30 gm gold)

Lux star bano, Aish karo contest: A

special promotional pack of lux soap
Scratch card -50 lucky winner got
the chance to meet Aishwarya rai.
SWOT Analysis
Strengths:
Strong market research (Door to door
sampling once in a year Rural and
Urban area.)
Many variants (Almond oil, Orchid
extracts, Milk cream, Fruit extracts,
Saffron sandalwood oil and Honey)
Strong sales and distribution network
backed by HUL
Strong brand image
 Dynamically continuous innovations
New variants and innovative
promotions (22 carat gold coin
promotion Chance Hai)
Strong brand promotion but relatively
lower prices Winning combination.
Mass appeal/Market presence across
all segments ( 15% of soap market)
Weakness:
Mainly positioned as beauty soap
targeted towards women, lack unisex
appeal

Some variation like the sunscreen,

international variant did not do well in
the market

Not much popular in rural areas

Opportunities:

Soap industry is growing by 10% in

India
Beauty segments compounded annual
growth rate (CAGR) is very high
Liquid body wash is currently in growth
stage Lux should come out with more
variants in this segment
Large market share Strong hold over
the market
Threats:
High internal competition (Pears
Beauty segment)

New entrants (Vivel)

Maturity stage threat of slipping

down to decline stage if constant
reinvention is not carried out
Competitor Analysis
Internal Competitor:
Lifebuoy: 1895, 18% Market shares

External Competitor:
Godrej consumers products limited
(GCPL):
2nd Largest soap maker after HUL
9.2% Market share
Brands: Cinthol, Fairglow, Nikhar
 Wipro:
Brand: Santoor (No 1 in AP) and
Chandrika

ITC:
1.75% growth in initial five months
Brand: Superia, Fiama di wills and
Vivel
Sold in six states
Market segmentation
Market segmentation of Lux
Gender: Female
Age: 16-35
Income: Middle income group (Rs. 15 to
20)
Highest selling beauty soap in urban area
(Rural area: Lifebuoy)
Expensive Affordable,
Target Area: Urban and Sub urban
Upper middle and middle class people
Product Positioning of Lux
Created Good Position Buyers mind Better
product attributes, price and quality
Offering product in a different way
Offering improved quality of the product
affordable price with high branding to position
the product as a best quality beauty soap in
buyers mind.
Market share of HUL: 54.3%
Market share of LUX: 15%
Better Positioning Market leader of beauty soap
Recommendation:
Recommendation:
Ayurvedic variant

Lux kids special soap

Target rural area

Target male customers

References:
References:
www.capitaline.com
www.hul.com
www.google.com
www.wikipedia.com
www.mbaparadise.com
www.fmcg.com
Questions???