LUX SOAP

HISTORY AND PRODUCT

LIFE CYCLE
Presented By
Name- Azhar Ali
Roll- 201316
DEPARTMENT OF BUSINESS ADMINISTRATION
AUDYOGIK SHIKSHA MANDAL INSTITUTE OF BUSINESS MANAGEMENT AND
RESEARCH ,
PUNE
(Affiliated to Savitribai Phule Pune University)
Year: 2020-2021
 LUX SOAP: HISTORY
• LUX is a global brand developed by Unilever
• Lux started as "Sunlight Flakes" laundry soap in 1899
• In 1925, it became the first mass-market toilet soap in the world
• As of 2009, Lux revenue was estimated at €1 billion
• Lux is the market leader in countries like Bangladesh, Brazil, India, Pakistan, South Africa
and Thailand
• Developed by Unilever, Lux (soap) is now headquartered in Singapore.
 EXECUTIVE SUMMARY
• Lux's early advertising campaigns aimed to educate users about its credentials as a laundry
product and appeared in magazines such as Ladies Home Journal.
• By the early 1920s, it was a hugely successful brand and in 1924, the Lever Brothers
conducted a contest that led them to a very interesting finding: women were using Lux as
toilet soap.
• Introduced in the United States in 1924, Lux became the world's first mass market toilet
soap with the tagline "made as fine as French Soap".
• In the first two years of launch, Lux concentrated on building its beauty soap credentials.
Advertisements offered consumers "a beauty soap made in the French method" at an
affordable price, with the promise of smooth skin.
 PRODUCT LIFE CYCLE
• Product life cycle are stages over which a product develops and affect the sales and profit
over time
Stages of product lifecycle are:
• 1. Introduction
• 2. Growth
• 3. Maturity
• 4. Decline
LUX - PRODUCT LIFE CYCLE
 INTRODUCTION STAGE
• Lux launched world's first mass market beauty soap in US in 1924 and had been launched in India in 1929.
At that time there was only 1 competitor which was lifebuoy which was Unilever's own brand. Lux was
launched in major cities of India like Mumbai, Calcutta etc.
• MARKETING OBJECTIVE: to create brand awareness in major cities of India.
• PRODUCT: just entered with 1 product, no differentiation initially.
• PRICE: their initial price was slightly higher than their competitor lifebuoy, as the initial costs were to be
recovered.
• ADVERTISING: They invested a pretty high amount in advertising as they wanted to create brand
awareness and targeted early adopters who were ready to buy the product. their first brand ambassador
was Leela Chitnis.
• DISTRIBUTION: the distribution was very selective, as they launched in major cities only, and channel
was through manufacturer, whole seller and retailer.
 GROWTH STAGE
• A period of rapid market acceptance and substantial profit improvement.
• MARKETING OBJECTIVE: To expand their market in different cities of India and expand
their market share.
• PRODUCT: It remained same till this phase.
• PRICE: Price was slightly cut down, in order to increase the market share.
• ADVERTISING: In this stage, they increased the budget to retain the customers and attract
new customers. Many top naught actresses were signed like Juhi Chawla, Hema Malini,
Zeenat Amaan, Madhuri Dixit, Sharmila Tagore and Sridevi.
• Distribution: Their distribution channels expanded as their market increased to different
cities
 MATURITY STAGE
• A slowdown in sales growth, because the product has achieved acceptance by most potential buyers.
• I believe this to be more of a stable stage for the product, where the graph is almost flat. looking at
Lux soaps, many competitors entered into the market like Cinthol, Fiam Di Wills, Santoor etc.
• MARKETING OBJECTIVE: It was to defend it's market share, maximize profit and expand their
market in rural as well as urban and sub urban areas.
• PRODUCT: The product innovated and introduced new products like Lux almond, Lux Orchid, Lux
chocolate etc.
• PRICE: The price is very competitive to sustain and increase the market share.
• DISTRIBUTION: The network became robust, strong and effective because the reach increased to all
urban, sub urban , and rural places.
• ADVERTISING: They still continued to indulge top actresses, and they did the best innovation by
signing shah rukh khan as the brand ambassador.
 DECLINE STAGE

• Here the sales show a downward drift and profits decrease. This is
where the company has to really think of ways to get its product
back in business. It may try hard at advertising, or may be add
new features, but basically come with a new marketing strategy to
increase its falling profits.
 REASONS FOR PRESENT STAGE OF LUX
• Lux lacks a unisex appeal as it has essentially been portrayed as a women's beauty soap and
has a lot of feminine appeal
• Certain variants of the soap like the Haute Pink, Sunscreen etc. did not performed well in
the market
• Some of its ads were quite controversial especially the one with Shahrukh khan
• The stock replenishment in semi urban areas is quite long
• Wear rate is high
• The company didn’t try to introduce a male variant of the soap to compete with the other
brands
• Number of competitors are high like ITC , P&G etc.
THANK
YOU