Brand Audit- LUX

-Palak Mehta -Harshit Shah -Shailendra Khirya

History of Lux
y Founded by lever Brothers in 1899 y The name changed from ´Sunlight Flakesµ to ´Luxµ in 1900, y Lux toilet soap was launched in the United States in 1925

and in the United Kingdom in 1928 y Launched in India in 1929 y Since the 1930s, more than 400 of the world·s most famous female celebrities have been associated with Lux.

y Early beginnings y Building beauty soap credentials y 1928 ² 1940: 9 out of 10 stars y 40s & 50s: Romancing the consume y 60s: Romancing the brand y 70s: Dimensionalizing beauty y 80s: Owning the category spac y 90s ² Early 2000s: Advanced skin benefits y 2000s: Beyond movie stars y Status: Enjoys more than 17% market share in the

premium soaps market valued at Rs6,000 crore

arget customer
y Middle class and upper middle class women aged 16 to 25

years y In 2001 introduced mini lux to capture rural market y In 2005 targeted men with shahrukh khan endorsing Lux soaps

Brand Portfolio
y Lux shampoo & conditioner y Lux liquid soap y Lux hairspray y Lux shampoo y Lux Shower jel y Lux hand wash y Lux Bathing soap

Product Variants
The bath soap range comprises of 7 variants: y Caress Me ² with drops of moisturiser y Kiss Me ² with strawberries & cream y Touch Me ² with peach & cream y Taste Me ² with macadamia nut & cream y Wake Me Up ² with mineral salts and seaweed extracts y Shake Me Up ² with mint and cucumber y Young & Radiant ² with aromatic oils Variants: (Sizes - 100 & 200g)

6 brand elements
y Memorability y Meaningfulness y Likability y Transferability y Adaptability y Protectability

Competitor & pod
y Godrej(9.2%)-Cinthol, Fair glow & Nikhar y Nirma soaps(6.74%) y Wipro-Santoor & Chandrika y Itc(1.75%)-Superia,Fiama di wills, vivel y Internally-Lifebouy & Dove

Customer knowledge structure:

3rd most trusted brand

y Constantly promoting itself as beauty soap y Logo, ads and celebrity endorsement

Sources of Brand equity
y Company repute y Unique features y Packaging y Great awareness and familiarity y Latest advertisements y POP·s and POD·s y Promotions & Celebrity endorsement

CBBE Pyramid

y Salience
It satisfy all the needs and wants of female

y Imagery:
y Brand personality of LUX is very attractive y Customer experience is good with LUX y Customer loves that people really who use LUX y Retail store are the best places to buy LUX

y Performance:
y It smoothen our skin y It fairs face completion

y Feelings:
y Customer feels confident while using LUX y They feel warmth feelings y They feel freshness y They feel they are more beautiful

y Judgment:
y Quality is good y Packaging is attractive y Features are outstanding

y Resonance:
y Customer feels proud by using LUX y They feel it is special for us y They really love and want LUX y They purchase the brand whenever they go to store y They really like to use LUX

SWOT analysis of LUX Strengths:
Many variants Strong sales and distribution network Strong brand image Strong supply chain Loyal customers. Positioning focuses on the attractive beauty segment. Perceived to have high value for money. Dynamically continuous innovation of the product, new variants and innovative promotions  Though it is in popular segment, it is having mass appeal/market presence across all segments.  Unique advantage of having access to resources and assets of HLL 

‡ Lux is mainly positioned as beauty soap targeted towards ‡ ‡ ‡


women, hence it lacks unisex appeal. Some variants like the sunscreen, International variant did not do well in the market. Stock out problems exists in some semi-urban/rural areas. Earlier positioning as the ´soap of the starsµ has somewhat alienated the brand from a portion of the consumers especially in rural areas. Has to face internal competition.

‡ Soap industry growing by 10 % in India ‡ More promotions like price-offs and samples ‡ Retentive strategy required as the soap segment is in the ‡ ‡ ‡ ‡

mature stage of its product life cycle Line extension ² probably with more variants catering to the beauty segment like natural, herbal soap etc Liquid body wash is currently in the growth stage ² Lux should come out with more variants in this segment It has a large market share and hence has a strong hold over the market. Market share of more than 17% in India, worth Rs. 6000crores.

‡ New entrants/local competitors. ‡ High internal competition ‡ High inflation rate. ‡ Excessive dependence on beauty segment makes Lux vulnerable to

changing customer tastes.
‡ Change in manufacturing technology. ‡ Increasing interest rates and raw materials.

The 4 p
‡ Product Line
± Shampoos ± Body washes ± Soaps

‡ LuxToilet Soap in the popular segment : with the goodness of a

variety of nourishing ingredients ² rose extracts, almond oil, milk cream, fruit extracts etc
‡ At the upper end of the market is the premium range which

continues to offer specialized skincare : moisturizing, deep cleansing and sunscreen soaps.

‡ USP or the common thread through all the advertisements is

the Presence of Movie Stars through the ages.
‡ The product has been positioned on the basis of

REFERANCE GROUP by using a celebrity popular at that point in time.
‡ Some amount of attribute positioning by mentioning the

various ingredients has also been

‡ Price" is pretty self-explanatory but it¶s very important to success. ‡ It gives value for money to his consumers. It is known for its

competitive pricing. ‡ It has the advantage of quoting a reasonable price due to its economy of scale, superior technology and optimum utilization of inventory.

‡ The LUX Beauty Bars are priced as follows:

100gms: Rs. 13 150gms: Rs. 19
‡ Lux has also introduced the ´Mini Luxµ that has helped in better

penetration of the rural market. Priced at
‡ 45g: Rs. 5

‡ Cutting-edge distribution network

± HLL·s distribution network is recognized as one of its

key strengths
± It has 2000+ suppliers and associates, 45 C&F.A.s,

7,000 stockiest and direct coverage in over 1 million retail outlets across India.
± HLL boasts of placing a product across the country in

less than 72 hrs.

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