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Project report on lux soap
INDEX Sr no. 1.
Title Introduction
2.
LUX Beauty Soap- Form, Features, Style
3.
Study of LUX with respect to 4 P‘s
4.
SWOT ANALYSIS
5.
Market Segmentation
6.
Competitor analysis
7.
Data of Analysis
8.
Weaknesses
9.
Opportunities
10.
Threat
11.
BCG Matrix
12.
Conclusion
Page no. 1.
INTRODUCTION: Lux soap was first launched in 1916 as laundry soap targeted specifically at 'delicates'. 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. The flake-type soap allowed the manufacturer s ome 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 d as suitable for home laundry use. Lux toilet soap was introduced in 1925 as bathroom soap. The name 'Lux' was chosen as a play on the word "luxury." Lux has been marketed in several forms, including bar and flake and liquid (hand wash, shower gel and cream bath soap). Lux in step with the changing trends and evolving beauty needs of the consumers, offers anexciting range of soaps and Body Washes with unique elements to make bathing time more pleasurable. One can choose from a range of skincare benefits like firming, fairness and moisturising. Lux stands for the promise of beauty and glamour as one of India's most trusted personal care b r a n d s . S i n c e i t s l a u n c h i n I n d i a i n the year 1929, Lux has offered a range of soaps indifferent colours and world class fragrances. Lux is a beauty soap of film stars. Lux recognized the need for a compelling message about beauty that would resonate with women of today .From the 1930s right through to the 1970s, Lux soap colours and packaging were altered several times to reflect fashion trends. In 1958 five colours made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap with their bathroom colours .In the early 1990s , Lux responded to the growing trend away from traditional soap bars by launching its own range of shower gels, liquid soaps and moisturizing bars. Lux beauty facialwash, Lux beauty bath and Lux beauty shower were launched in 1992.In 2004, the entire Lux range was re-launched in the UK to include five shower gels, 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, ―Glowing Touch‖ and ―Sparkling Morning‖ shower gels. Lux has recently launched its two fruit extract variants – New Lux Strawberry & Cream and Lux Peach & Cream contain a blend of succulent fruits & luscious Chantilly cream. The most recent addition in the brand is Lux Crystal Shine.
LUX Beauty Soap- Form, Features, Style: With icons of beauty endorsing the brand, the offerings m a d e b y L u x h a v e a l w a y s b e e n superior and have always led the market, setting benchmarks for competition .L u x h a s b e a u t y o f f e r i n g s i n t w o o f t h e f o u r m a r k e t s e g m e n t s – p o p u l a r a n d p r e m i u m , spanning the needs of varied consumers .Lux Toilet Soap in the popular segment has in the past years offered its consumers a range of s o a p s e n r i c h e d w i t h t h e g o o d n e s s o f a v a r i e t y o f n o u r i s h i n g i n g r e d i e n t s – r o s e e x t r a c t s , almond oil, milk cream, fruit extracts and honey which are known to harbour the secrets of incredibly perfect skin .At the upper end of the market is the range which continues to offer specialised skin care to its consumers in the form of International Lux – a range of moisturising, deep cleansing and sunscreen soaps .T o e s t a b l i s h t h e p r e s e n c e o f nourishing ingre di ents in the new Lux,aunique concept,‗ingredient s you c a n s e e i n t h e s o a p ‘ , w a s b o r n . A n o v e l m e t a l l i c s u b s t r a t e p a c k a g i n g bea utifully showcased the ingredients and its globally accepted ingredient -linked perfume she ightened the sensorial experience .Each of the soaps in the range has milk cream, with the active ingredients of rose extracts,s a n d a l s a f f r o n , a l m o n d o i l a n d f r u i t e x t r a c t s . T h e s e c r e a t e a n e x p e r i e n c e i n p a m p e r i n g indulgence and luxury designed to bring out the star in every woman. This is the first time in the Indian chapter of the brand that the beauty bar variant was being differentiated on the basis of its ingredients rather than its perfume and colours .T h o u g h L u x I n t e r n a t i o n a l , a p r e m i u m v a r i a n t o f t h e t o i l e t s o a p , l a u n c h e d i n 1 9 8 9 , i s differentiated on the basis of its ingredients, the popular version, Lux Beauty Bar was always projected as a ―pure and mild‖ solution to soft and smooth skin. The LUX Trade Character or Logo is present prominently on the package. A novel metallicsubstrate packaging showcases the ingredients, and a female model is shown on the pack .Also displayed graphically are the key ingredients.
Study of LUX with respect to 4 P’s: a. Product: A product is anything that can be offered to a market to satisfy a need or want. Products thata r e m a r k e t e d i n c l u d e p h ys i c a l g o o d s , s e r v i c e s , e x p e r i e n c e s , e v e n t s , p e r s o n s , p l a c e s , properties, organizations, information and ideas.Product Classification • LUX is a Tangible, Non Durable Good on the basis of this classification. • LUX and other soaps fall into the category of Convenience Good
Some of the prominent variants:
Lux Almond Lux Orchid Lux Fruit Lux Saffron Lux Sandalwood Lux Rose Lux International Lux Chocolate Lux Aromatic ExtractsLux Oil and Honey Glow Lux Provocateur
Logo:
Packaging: The colors are different for different variants such as saffron for the saffron variant, pink for the rose extracts etc.The Bars come in package sizes of 100g, 120g, 150 gLux has also launched a 45 g variant called Mini Lux priced at Rs. 5.
b. Promotion: The great Indian brand wagon started nearl y four decades a g o . G r e a t b r a n d s s o m e t i m e s out last their ambassadors as proven by Lux which celebrated its 75th anniversary in India. The first ambassador, Leela Chitnis featured in a Lux ment which flagged off theLux wagon. She gave way to a galaxy of stars which includes Madhubala, Nargis, MeenaKumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema Malini, Zeena Amaan, Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai and Kareena Kapoor. The lastfrontier for most actors aspiring to stardom is becoming a Lux ambassador. The brand haso u t l a s t e d m a n y s o a p s . From the beginning, Lux became a household name across the country.
Advertising: Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. Ads can be a cost effective way to disseminate messages, whether to build a brand preference or to educate people.
Leela Chitnis in the first Lux print adverstisement featuring an indian actress
Katrina kaif in the Lux adverstisement featuring an indian actress
Rekha in the Lux adverstisement featuring an indian actress
Change in communication strategy: However, the communication was slowly seen to be losing relevance, as consumers were beginning to question if the film star actually used the brand. I n a d d i t i o n t o t h i s , s e v e r a l c o m p e t i t i v e b e a u t y s o a p b r a n d s h a d b e g u n a d v e r t i s i n g u s i n g similar methods of communication. In this context, the global brand team for Lux develope new communication strategy. This strategy – bring out the star in you – for the first time moved the brand away from the long-running film star route. The film star still features in the new communication but not as her gorgeous self but rather as an alter ego/projection of the protagonist (a regular girl), for a few seconds of the entire ad. Thus, for the first time the film star was used as a communication device and not as the main feature of the ad. The move away from the film star and her fantasy world to a regular Lux , with the focus on the protagonist‘s star quality, is a change from the norms set by Lux advertising in the past. With the new communication strategy, the film star is used purely as a communication device to portray star quality in every Lux . This can be significantly seen in the latest TV commercial of Lux Crystal Shine where Priyanka Chopra is portrayed asa normal woman .This idea – bring out the star in you – puts the consumer at the heart of the brands‘ promise .T h i s p r o m i s e g o e s b e y o n d t h e f u n c t i o n a l d e l i v e r a b l e s o f s o a p , b e y o n d b a t h i n g a n d t h e bathroom to the world outside. It‘s a world where with Lux on her side, an ordinary woman can impact her world with her own star qualitty Sales promotion, a key ingredient in marketing campaigns, consists of a collection of incentiv e tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion includes tools for
Prominent Sales Promotion Schemes Used By LUX
Lux presented 30 gm gold each to the first three winners of the Lux Gold Star offer from Delhi. According to the promotional offer that Lux unveiled in October 2000, a consumer finding a 22-carat gold coin in his or her soap bar got an opportunity to win a n a d d i t i o n a l 3 0 g m g o l d . T h e f i r s t 1 0 c a l l e r s e v e r y w e e k g o t a 3 0 g m g o l d e a c h . The offer could be availed only on 100 gm and 150 gm packs of Lux soap. Lux Star Bano, Aish Karo contest: All one needed to do was buy a special promotiona l pack of Lux soap. The pack comes with a special scratch card. The 50l u c k y w i n n e r s a n d t h e i r s p o u s e s w e r e f l o w n d o w n t o M u m b a i t o l i v e a d a y l i k e Aishwarya Rai would. They could also be given gift vouchers worth Rs 50,000 from S h o p p e r s ' S t o p a l o n g w i t h a n e x c l u s i v e l y d e s i g n e d N e e t a L u l l a s a r i a n d a b e a u t y makeover by Michelle Tung, Aishwarya's preferred designer and stylist. The pièce derésistance was a dinner date with Aishwarya Rai herself.
Lux celebrated 75 years of stardom with the Har Star Lucky Star activity. All wrappers of Lux had a star printed inside them. If the consumer found written inside the star, any number from ―1‖ to ―5‖, she would get an equivalent discount (in r u p e e s ) o n h e r p u r c h a s e f r o m h e r s h o p k e e p e r . I f t h e c o n s u m e r f o u n d ― 7 5 y e a r s ‖ written inside the star, she will get a year‘s supply of Lux free.
Public Relations: Not only must the company relate constructively to customers, suppliers and dealers, it mus talso relate to a large number of interested publics. A public is any group that has an actual or potential interest in or impact on a company‘s ability to achieve its objectives. PR involves a variety of programs designed to promote or protect a company‘s image or its individual products.
LUX PR Activities: Press relations: Lux has been maintaining constant communicating with its customers and potential customers, of the various developments taking place in the brand by using press relations.
Events: Lux celebrated 75 years of existence in a grand way by unveiling Shahrukh Khan as their latest brand ambassador. Kareena Kapoor, Juhi Chawla, Sridevi and HemaMalini graced the event and made it special. All the stars have endorsed Lux in the past. The event was held at the grand Intercontinental in Mumbai.
Limited edition: Coming up with limited edition of the brand is also a way of attracting attention towards the brand. It creates a buzz and a feeling of urgency to try out the product and helps in promotion of the brand. This strategy was also implemented by Lux by bringing out limited editions like Chocolate Seduction, Aromatic Glow, Festive Glow and Haute Pink.
c. Price: If price is too high then a company may never sell a single item of it. If price is too low theno n e c a n l o s e m o n e y o n e v e r y s a l e o n c e a l l o f c o s t s o f d o i n g b u s i n e s s a r e c o n s i d e r e d . Therefore the key is to price it in such way that it appears attractive to the customer as well as p r o f i t a b l e t o t h e c o m p a n y. H U L s e e m s t o h a v e m a s t e r e d t h i s i d e a . P r i c e s o f H U L a r e considered the most competitive in Indian market. The main fact for this huge success storyis the strategic pricing decision the company has adopted from time to time.H U L a l w a y s g i v e s v a l u e f o r m o n e y t o t h e i r c o n s u m e r s . I t i s k n o w n f o r i t s c o m p e t i t i v e pricing. It has the advantage of quoting a reasonable price due to its economies of scale. HULa l s o c a n q u o t e a v e r y c o m p e t i t i v e p r i c e d u e t o i t s s u p e r i o r t e c h n o l o g y a n d o p t i m u m utilization of inventory. It h as the product r a n g e t h a t m e e t s t h e n e e d s o f a l l c l a s s e s o f consumers. It has the products that are categorized as and mass products. HUL matches its prices with the competitor who is operating in the same category.
d. Place: Cutting-edge distribution network : HUL‘s distribution network is recognized as one of its key strengths -- that which helps reach out its products across the length and breadth of this vast country. The need for a strong distribution network is imperative, since HUL‘s corporate purpose is ―to meet the every day needs of people everywhere.‖At Hindustan Unilever Limited, distribution network is one of the key strengths that help them reach their products across the length and breadth of this vast country. It has 2000+suppliers and associates 7,000 stockists and direct coverage in over 1 million retail out lets across India. To meet the ever-changing needs of the consumer, HUL has set up a distribution network that ensures availability of all their products, in all outlets, at all times. This includes, maintaining favourable trade relations, providing innovative incentives to retailers and organizing demand generation activities among a host of other things. HUL boasts of placing a product across the country in less than 72 hrs. The first phase of the HUL distribution network had wholesalers placing bulk orders directly with company. Large retailers also placed direct orders, which comprised almost 30 per cent of the total orders collected. Today, the goods are transferred from the factory to the company warehouses and are sent to the distributor from there on a daily basis. From the distributor, the stock reaches the market through daily sales. Typically, these include the salesman ing the order of a retail outlet and delivering the goods the next day .Recently HUL has changed its traditional way distribution and came out with a new strategy of distribution. It‗s because of the change in buying pattern of the con sumer due to more disposable income. There are different channels of distribution like Modern Trade, which covers all chains of super markets like Food World, who get the stocks directly from the company. Wholesalers and second leg of big retail outlets called Super Value stores come under the surveillance of the distributor along with the mass retail outlets. There is also this new concept in the HUL distribution channel called Kiosk. Kiosk is a small shop that sell sonly sachets and low priced items (below Rs.10/-). Kiosk also does not come under the surveillance of the distributor .In addition to the ongoing commitment to the traditional grocery trade, HUL is building a special relationship with the small but fast emerging modern trade. HUL's scale enables it provide superior customer service including daily servicing, improving their rangeavailability whilst reducing inventories. HUL is using the opportunity of interfacing more directly with consumers in this retail environment through specially designed communication and promotions. This is building traffic into the stores while yielding high growth for the business.
SWOT ANALYSIS: SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential un favorable conditions for an organization). The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed ,SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity), or if it indicates an obstacle that must be overcome or minimized to achieve desired results (weakness or threat) (Marketing Strategy, 1998).The SWOT analysis summarizes the external environmental factors as a list of opportunities and threats.
SWOT PROFILE OF LUX STRENGTHS: 1.Strong Market Research (door to door sampling is done once a year in Urban and Rural areas) 2.Many variants (Almond Oil, Orchid Extracts, Milk Cream, Fruit Extr a c t s , S a f f r o n , Sandalwood Oil, and Honey to name a few) 3. Strong sales and distribution network backed by HLL 4. Strong brand image 5. Positioning focuses on the attractive beauty segment 6.Dynamically continuous innovation of the product and brand rejuvenation – new variants(Aromatic Glow and Chocolate Seduction and Lux White Spa body wash) and innovative promotions (22 carat gold coin promotion – ‗Chance Hai‘) 7. Perceived to have high value for money (strong brand promotion but relatively lower price which is a winning combination in the popular segment) 8.Though it is in popular segment, it is having mass appeal/market p r e s e n c e a c r o s s a l l segments (15% of the soap market captured by Lux (sales / volume) 9.Unique advantage of having access to resources and assets of HLL
Market Segmentation: ―One cannot be everything to everyone, but can be everything to a selected few‖. This is the basis for segmentation. The definition of segmentation is ―market segmentation is a process of dividing a heterogeneous market into homogeneous sub units. Market segmentation is the identification of portions of the market that a re different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers .A good market segmentation will result in segment that are internally homogenousa n d e x t e r n a l l y h e t e r o g e n e o u s ; t h a t i s , a s s i m i l a r a s p o s s i b l e w i t h i n t h e s e g m e n t , a n d a s different as possible between segments.
Market segmentation of Lux As mentioned above, market segmentation is done so as to satisfy the customers more efficiently. For a brand like Lux, which has a broad customer base, this factor become sabsolutely critical. The segmentations are done basically on the basis of factors like :Lux soap concentrates in the beauty soap category. A brief description of the various factors Lux considers are:
Gender: Lux has been, since its introduction seen as a soap for women. Lux as a brand symbolises beauty. The Lux ads has hosted a bevy of film stars such as from Madhubala, Babita, Hema, Karisma to Kareena all endorsing the goodness of Lux over generations. This was done in order to attract women who wanted to look and feel like the stars they idolised.
Age : Lux is seen to mainly attract customers that fall within the age group of 16 to 35. In order to cater them, Lux comes up with new and interesting variants. One of the latest entrants, Lux Crystal Shine is mainly targeted at the youth .So is the Black Provocateur which symbolises boldness. Another example is the chocolate variant lux which was a novel idea. All these are introduced to catch the attention of the youth.
Income : One of the essential characteristic of an FMCG product is an affordable price which is very important for its fast sales. It‘s the meeting point of demand for a product and its price that decide whether the product will sell or not. And the demand for a product is highly dependent on the income of the customer. Lux is not very costly toilet soap. Its price varies from Rs.15to rs.20.Therefore its target market starts from the middle income group.
Positioning Lux—derived from the word luxury— was launched in 1899 as a laundry soap in the UK. In1925, the brand was extended to the toilet soap category. It was positioned as a beauty soap in India, and HUL has since used successful film actors of the time—such as Leela Chitnis ,Madhubala, Hema Malini and Kareena Kapoor—to endorse the product .Lux‘s secret of longevity has been its consistent evolution—be it the soap colour, packaging o r n e w variants, the brand has banked on innovation to keep its youthful i m a g e i n t a c t . Extending the soap cake to a range of shower gels, liquid soaps and moisturizing bars has helped the brand keep consumers excited and the competition at bay. What has not changed is the consistency in its communication and its positioning. Its taglines—if it‘s good enough for a film star, then it‘s good for you too to Play with beauty— have conve yed the same message over the years. It taps into a n e m o t i o n v e r y c l o s e t o humanity‘s basic need—social interaction. The brand has always hired celebrities when they have reached a certain height rather than using them at the start of their careers. This has helped the customers to relate to their idols on screen .From being a soap for the stars, Lux has recently started positioning itself in such a way that the ordinary woman can relate to the brand. The ments show not the star, but the actress in the character of an ordinary girl or woman, which any woman can identify with. This positioning has helped the brand in striking a chord with the target consumers.
Market segmentation of Lux
Competitor analysis: Internal competitors: Lifebuoy: Born: 1895History: Owned by Unilever Plc., the parent company of Hindustan Unilever Ltd .Status: Has 18% market share in the bathing soaps category, worth Rs6,000 crore Lifebuoy landed on Indian shores in 1895, when the country was in the grip of a plague epidemic. With its positioning as a powerful germicidal and disinfectant, and with a strong car bolic smell, it was what the nation was looking for. But the health advantage waned over time as competitors came out with soaps that promised both health and beauty .It was around 2002 that the product moved from being a hard soap to a mild soap that delivered a significantly superior bathing experience. The new soap had a refreshing fragrance and its overall positioning changed, painting its promise of health in softer, more versatile and responsible hues—for the entire family. The packaging was also changed: The rugged looking packs were soon replaced with a softer pinkish cover. This was followed by a series of ads highlighting the soap‘s germ-fighting benefits. Lifebuoy had become a family soap with hygiene as its core promise. Right from the early days, the brand has preferred effective communication to celebrities. An exception is it recent, limited exposure campaign with cricketer Yuvraj Singh.
External Competitors Santoor: Santoor is the flagship brand in the Wipro Consumer Care & Lighting stable and the 2ndlargest brand of soap in India in the popular segment of the category. The brand enjoys two decades of trust since its launch in 1986 and has grown to be counted amongst the top brands in the Country in an intensively competitive market. Millions of women across the country have discovered the secret of younger looking skin with Santoor. It is a truly unique soap that combines the goodness of natural ingredients - Sandal, Turmeric and natural Skin Softeners .Sandal provides a cooling and soothing effect that softens skin, while turmeric controls formation of skin darkening pigments like melanin, to give skin a radiant glow. Natural Skin Softeners make skin soft and supple. The end result, skin that is so healthy and beautiful, it lies about your actual age! Amongst the first brands in the Country to launch an offering with the t w i n i n g r e d i e n t benefits of Sandal and Turmeric Santoor has over the years moved from a purely natural ingredient based appeal, to one of the most preferred beauty soaps of the day. Today, Santoor is one of the fastest growing soap brands in India. Santoor is available in three variants – Santoor (Sandal & Turmeric), Santoor White (Sandal & Almond milk) and Santoor Chandan which is a soap manufactured with extracts of Sandalwood oil
Data Analysis Do you use soaps for every bath/ shower? •Yes • No
Do you use soaps for every bath/ shower? 100 90 80 70 60 50 40 30 20 10 0
Do you use soaps for every bath/ shower?
Yes
No
Many people use soap for every bath / shower.
2. How many bath soaps do you personally require every month? •1
•2
•3
•4
How many bath soaps do you personally require every month? 45 40 35 30 25 20 15 10 5 0
How many bath soaps do you personally require every month?
1
2
3
4
Many of people uses 4 bath saop in every month.
3. How many bath soaps do you buy for your household every month? •1
•3
•5
•7
How many bath soaps do you buy for your household every month? 50 40 30
How many bath soaps do you buy for your household every month?
20 10 0 1
3
5
7
Maximum 5 bath saops people buy for their household every months.
4. Which kind of bath soaps do you like?(Tick as many you think appropriate) •Foamy
•Transparent
•Glycerin
•Medicical
Which kind of bath soaps do you like? 45 40 35 30 25
Which kind of bath soaps do you like?
20 15 10 5 0 Foamy
Transparent
Glycerin
Medicical
Most of the people like the transparent bath saop.
5.Which brand do you prefer the most? •Lux
•Dove
•Lifebuoy
•Santoor
Which brand do you prefer the most? 70 60 50 40 Which brand do you prefer the most?
30 20 10 0 Lux
Dove
Lifebuoy
santoor
Most of the people prefer Lux and after that Dove bath saop.
6. Do you change from one brand of soap to another? •Yes
•no
Do you change from one brand of soap to an other? 80 70 60 50 40
Do you change from one brand of soap to another?
30 20 10 0 Yes
No
Many of the people does not always change from one brabd of saop to another.
7. Have you ever used Lux soap? •Yes
• No
Have you ever used Lux soap? 90 80 70 60 50 Have you ever used Lux soap?
40 30 20 10 0 Yes
No
Very few people were didn’t used Lux because they don’t like the product.
8. If yes, please specify why? • perfume
•colour
•hygienic
• protect skinsuits your skin
If yes, please specify why? 45 40 35 30 25 20
If yes, please specify why?
15 10 5 0 perfume
colour
hygienic
protect skinsuits your skin
Most of the people used the saop because it cantains perfume.
9. If no, it is because: •Lack of awareness
•Lack of availability
•You find it expensive
•You don‘t like the product
If no, it is because 60 50 40 30 If no, it is because
20 10 0 Lack of awareness
Lack of availabilityYou find it expensive
You don’t like the product
Very few people used Lux saop because they don’t like the product.
10.Which type of Lux Soap you like the most? •Peach Milk
•Cream Milk
•Pink Cream
•Badam Milk
Which type of Lux Soap you like the most 50 45 40 35 30 25 20 15 10 5 0
Which type of Lux Soap you like the most
Peach milk
Cream milk
pink cream
Badam milk
Many people are uses the pink cream saop.
11.What is the size of the Lux Soap you usually purchase? •100g
•200g
•300g
What is the size of the Lux Soap you usually purchase? 45 40 35 30 25 20 15 10 5 0
What is the size of the Lux Soap you usually purchase?
100.g
200.g
300.g
Many of the people usually purchase 200.g size of the Lux saop rather than any other size. 12. How frequently you purchase Lux Soap? •Every Week
•Every fortnight
•Every month
•Occasionally
How frequently you purchase Lux Soap? 70 60 50 40 How frequently you purchase Lux Soap?
30 20 10 0 Every Week
Every fortnight Every month Occasionaly\
People usually purchase Lux saop in every month for use .
WEAKNESSES: 1.Lux is mainly positioned as beauty soap targeted towards women, hence it lacks unisex appeal 2.Usage rate/ wear rate is high and is generally mushy and soggy 3.Some variants like the sunscreen, International variant did not do well in the market 4.Certain ments like the recent one with ShahRukh Khan resulted in controversial interpretations of the message of the ment and lead to some loss of focus (of message of the ments) 5.Stock out problems - replenishment time is high in semi-urban/rural areas 6.Earlier positioning as the ―soap of the stars‖ has somewhat alienated the brand from a portion of the consumers especially in rural areas
OPPORTUNITIES: 1.Soap industry growing by 10% in India 2.Beauty segment‘s Compounded Annual Growth Rate (CAGR) is very high. An indication of this is that Fair and Lovely‘s segment is increasing at a fast rate - Lux must reinforce its presence in the beauty segment 3.More promotions like price-offs and samples 4.Retentive strategy required as the soap segment is in the mature stage of its product lifecycle 5.Line extension – probably with more variants catering to the beauty segment like natural ,herbal soap etc 6.Liquid body wash is currently in the growth stage – Lux should come out with more variants in this segment 7.Level of servicing is high during sales promotion schemes – this could be brought down8. It has a large market share and hence has a strong hold over the market
THREATS: 1.New entrants/local competitors/MNCs would increase the competition (Camay, P&G) 2.High internal competition – Pears also catering the beauty segment (also from HLL stable) 3.Excessive dependence on beauty segment makes Lux vulnerable to changing customer tastes 4.T e c h n o l o g i c a l c h a n g e m a k e s t h e e x i s t i n g p r o d u c t s o b s o l e t e – L u x s h o u l d f o c u s o n technological innovations like Body Wash 5. Its in the maturity stage in the Product Life Cycle and has a threat of slipping down to decline stage if constant reinvention of the brand is not carried out.
BCG Matrix: BCG matrix method is a portfolio management tool developed by Boston ConsultingGroup .It is a method based on the product life cycle theory that can be u sed to know what priorities should be given in the product portfolio of a business unit. To ensure value creation a company should have a portfolio of products that contains both high growth products in need of cash inputs and low growth products that generate a lot of cash. There are2 dimensions: market share and market growth. Placing products in the
BCG matrix results in four categories in a portfolio of a company: Star: High market growth and high market share Cash cows: Low market growth and high market share Question marks: High market growth and low market Share Dogs: Low market growth and low market share Innovation seems to be the main theme of the Indian soap industry in 2008. With the entry of ITC, the stage is all set for a major tussle between the new entrant and existing players in the Rs 6,500-crore branded toilet soaps sector in India. The soap industry is seen to have a market growth rate of about 10%. This shows that industry has a high growth rate. HUL is a market leader in the industry and its soap Lux enjoys a market share of 17 % in India. So according to the concept of BCG matrix any product which has high market growth and market share is classified as STARS. The major objective of products coming in Stars is to maintain their high market share. HUL comes up with various variants in LUX quite frequently in order to maintain their position.
Ansoff model for Lux: The Ansoff Growth matrix is a tool that helps businesses decide their product and marketgrowth strategy. Ansoff‘s product/market growth matrix suggests that a business‘ attempts to grow depend on whether it markets new or existing products in new or existing markets. Lux has been in this industry for more than 75 years.
Conclusion: Lux soap was first launched in the UK in 1899 as a flaked version of Sunlight soap .Subsequently it was launched in the US in 1916, and marketed as a laundry soap targeted specifically at 'delicates'. Lever Brothers encouraged women to home launder their clothes without fear of satins and silks being turned yellow by harshlyes that were often used in soaps at the time. 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 das suitable for home laundry use. Lux is currently a product of Unilever . The name "Lux"was chosen as the Latin word for "light" and because it was suggestive of "luxury‖.In Pakistan Lux was first introduced in 1957. Lux has been following a trend of constant product development and improvement since its inception. This has always proved to be successful for the brand. Therefore a similar strategy can be followed in the future: Lux can go for a high end Ayurvedic variant. Lux has been associated with beauty and feminine grace till now. In the present day consumers are in to naturopathy and believe in natural treatments like the Ayurveda. Keeping with this trend, Lux can foray into Ayurvedic variant. HUL already has Hamam soap in this category. But it is a low priced soap whose target audience is quite different from Lux. This new variant can provide the current customers of Lux with a blend of both class and natural goodness. Today‘s children are tomorrow‘s customers. Children have a major share in the decision m a k i n g process of consumers. Therefore it will be a viable decision to launch L u x K i d s Special soap. By doing this Lux can ―catch them young‖ and get a loyal customer base from them. This variant can be in vibrant colours as opposed to the soft colours used currently. The fragrances can also be made more ―fun‖ and vibrant. Lux has high penetration in the urban and semi urban a reas. However, it has only 19.8% penetration in the rural areas. The rural market has great untapped potential, which HUL ha s not concentrated on till now. Consumers are becoming more and more aware and under going a surge in disposable income. This huge opportunity can be explored by Lux. HUL already has a strong distribution channel in almost all regions. What is needed here is a change in the c o m m u n i c a t i o n s t r a t e g y t o r e a c h o u t t o t h e r u r a l c u s t o m e r s . T h e v a r i o u s c h a n n e l s o f communication should be made more appealing to this rural segment of customers.
Questionnaire: To study the brand performance of Lux bath soap Name : Address: Gender: Age: 1. Do you use soaps for every bath/ shower: •Yes
• No
2. How many bath soaps do you personally require every month? •1
•2
•3
•4
3. How many bath soaps do you buy for your household every month? •1
•3
•5
•7
4. Which kind of bath soaps do you like?(Tick as many you think appropriate) •Foamy
•Transparent
•Glycerin
•Medicinal
5.Which brand do you prefer the most? •Lux
•Dove
•Lifebuoy
•Santoor
6. Do you change from one brand of soap to another? •Yes
•no
7. Have you ever used Lux soap? •Yes
• No
8. If yes, please specify why? • perfume
•colour
•lather
•long lasting
•hygienic
• protect skinsuits your skin
•value for money 9. If no, it is because: •Lack of awareness
•Lack of availability
•You find it expensive
•You don‘t like the product
•Others… 10 From where do you usually purchase Lux Soap? •Nearby Store
•Retail Store
•Whole Seller 11.Which type of Lux Soap you like the most? •Peach Milk
•Cream Milk
•Pink Cream
•Badam Milk
12.What is the size of the Lux Soap you usually purchase? •100g
•200g
•300g 13. How frequently you purchase Lux Soap? •Every Week
•Every fortnight
•Every month
•Occasionally
14. Tick the level of importance according to your preference: Attribute very important, moderately important, least important? •Color •Fragrance
•Thickness
•Lack of awareness
•Lack of availability
•You find it expensive
•You don‘t like the product
•Others… 10 From where do you usually purchase Lux Soap? •Nearby Store
•Retail Store
•Whole Seller 11.Which type of Lux Soap you like the most? •Peach Milk
•Cream Milk
•Pink Cream
•Badam Milk
12.What is the size of the Lux Soap you usually purchase? •100g
•200g
•300g 13. How frequently you purchase Lux Soap? •Every Week
•Every fortnight
•Every month
•Occasionally
14. Tick the level of importance according to your preference: Attribute very important, moderately important, least important? •Color •Fragrance
•Thickness
INDEX Sr no. 1.
Title Introduction
2.
LUX Beauty Soap- Form, Features, Style
3.
Study of LUX with respect to 4 P‘s
4.
SWOT ANALYSIS
5.
Market Segmentation
6.
Competitor analysis
7.
Data of Analysis
8.
Weaknesses
9.
Opportunities
10.
Threat
11.
BCG Matrix
12.
Conclusion
Page no. 1.
INTRODUCTION: Lux soap was first launched in 1916 as laundry soap targeted specifically at 'delicates'. 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. The flake-type soap allowed the manufacturer s ome 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 d as suitable for home laundry use. Lux toilet soap was introduced in 1925 as bathroom soap. The name 'Lux' was chosen as a play on the word "luxury." Lux has been marketed in several forms, including bar and flake and liquid (hand wash, shower gel and cream bath soap). Lux in step with the changing trends and evolving beauty needs of the consumers, offers anexciting range of soaps and Body Washes with unique elements to make bathing time more pleasurable. One can choose from a range of skincare benefits like firming, fairness and moisturising. Lux stands for the promise of beauty and glamour as one of India's most trusted personal care b r a n d s . S i n c e i t s l a u n c h i n I n d i a i n the year 1929, Lux has offered a range of soaps indifferent colours and world class fragrances. Lux is a beauty soap of film stars. Lux recognized the need for a compelling message about beauty that would resonate with women of today .From the 1930s right through to the 1970s, Lux soap colours and packaging were altered several times to reflect fashion trends. In 1958 five colours made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap with their bathroom colours .In the early 1990s , Lux responded to the growing trend away from traditional soap bars by launching its own range of shower gels, liquid soaps and moisturizing bars. Lux beauty facialwash, Lux beauty bath and Lux beauty shower were launched in 1992.In 2004, the entire Lux range was re-launched in the UK to include five shower gels, 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, ―Glowing Touch‖ and ―Sparkling Morning‖ shower gels. Lux has recently launched its two fruit extract variants – New Lux Strawberry & Cream and Lux Peach & Cream contain a blend of succulent fruits & luscious Chantilly cream. The most recent addition in the brand is Lux Crystal Shine.
LUX Beauty Soap- Form, Features, Style: With icons of beauty endorsing the brand, the offerings m a d e b y L u x h a v e a l w a y s b e e n superior and have always led the market, setting benchmarks for competition .L u x h a s b e a u t y o f f e r i n g s i n t w o o f t h e f o u r m a r k e t s e g m e n t s – p o p u l a r a n d p r e m i u m , spanning the needs of varied consumers .Lux Toilet Soap in the popular segment has in the past years offered its consumers a range of s o a p s e n r i c h e d w i t h t h e g o o d n e s s o f a v a r i e t y o f n o u r i s h i n g i n g r e d i e n t s – r o s e e x t r a c t s , almond oil, milk cream, fruit extracts and honey which are known to harbour the secrets of incredibly perfect skin .At the upper end of the market is the range which continues to offer specialised skin care to its consumers in the form of International Lux – a range of moisturising, deep cleansing and sunscreen soaps .T o e s t a b l i s h t h e p r e s e n c e o f nourishing ingre di ents in the new Lux,aunique concept,‗ingredient s you c a n s e e i n t h e s o a p ‘ , w a s b o r n . A n o v e l m e t a l l i c s u b s t r a t e p a c k a g i n g bea utifully showcased the ingredients and its globally accepted ingredient -linked perfume she ightened the sensorial experience .Each of the soaps in the range has milk cream, with the active ingredients of rose extracts,s a n d a l s a f f r o n , a l m o n d o i l a n d f r u i t e x t r a c t s . T h e s e c r e a t e a n e x p e r i e n c e i n p a m p e r i n g indulgence and luxury designed to bring out the star in every woman. This is the first time in the Indian chapter of the brand that the beauty bar variant was being differentiated on the basis of its ingredients rather than its perfume and colours .T h o u g h L u x I n t e r n a t i o n a l , a p r e m i u m v a r i a n t o f t h e t o i l e t s o a p , l a u n c h e d i n 1 9 8 9 , i s differentiated on the basis of its ingredients, the popular version, Lux Beauty Bar was always projected as a ―pure and mild‖ solution to soft and smooth skin. The LUX Trade Character or Logo is present prominently on the package. A novel metallicsubstrate packaging showcases the ingredients, and a female model is shown on the pack .Also displayed graphically are the key ingredients.
Study of LUX with respect to 4 P’s: a. Product: A product is anything that can be offered to a market to satisfy a need or want. Products thata r e m a r k e t e d i n c l u d e p h ys i c a l g o o d s , s e r v i c e s , e x p e r i e n c e s , e v e n t s , p e r s o n s , p l a c e s , properties, organizations, information and ideas.Product Classification • LUX is a Tangible, Non Durable Good on the basis of this classification. • LUX and other soaps fall into the category of Convenience Good
Some of the prominent variants:
Lux Almond Lux Orchid Lux Fruit Lux Saffron Lux Sandalwood Lux Rose Lux International Lux Chocolate Lux Aromatic ExtractsLux Oil and Honey Glow Lux Provocateur
Logo:
Packaging: The colors are different for different variants such as saffron for the saffron variant, pink for the rose extracts etc.The Bars come in package sizes of 100g, 120g, 150 gLux has also launched a 45 g variant called Mini Lux priced at Rs. 5.
b. Promotion: The great Indian brand wagon started nearl y four decades a g o . G r e a t b r a n d s s o m e t i m e s out last their ambassadors as proven by Lux which celebrated its 75th anniversary in India. The first ambassador, Leela Chitnis featured in a Lux ment which flagged off theLux wagon. She gave way to a galaxy of stars which includes Madhubala, Nargis, MeenaKumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema Malini, Zeena Amaan, Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai and Kareena Kapoor. The lastfrontier for most actors aspiring to stardom is becoming a Lux ambassador. The brand haso u t l a s t e d m a n y s o a p s . From the beginning, Lux became a household name across the country.
Advertising: Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. Ads can be a cost effective way to disseminate messages, whether to build a brand preference or to educate people.
Leela Chitnis in the first Lux print adverstisement featuring an indian actress
Katrina kaif in the Lux adverstisement featuring an indian actress
Rekha in the Lux adverstisement featuring an indian actress
Change in communication strategy: However, the communication was slowly seen to be losing relevance, as consumers were beginning to question if the film star actually used the brand. I n a d d i t i o n t o t h i s , s e v e r a l c o m p e t i t i v e b e a u t y s o a p b r a n d s h a d b e g u n a d v e r t i s i n g u s i n g similar methods of communication. In this context, the global brand team for Lux develope new communication strategy. This strategy – bring out the star in you – for the first time moved the brand away from the long-running film star route. The film star still features in the new communication but not as her gorgeous self but rather as an alter ego/projection of the protagonist (a regular girl), for a few seconds of the entire ad. Thus, for the first time the film star was used as a communication device and not as the main feature of the ad. The move away from the film star and her fantasy world to a regular Lux , with the focus on the protagonist‘s star quality, is a change from the norms set by Lux advertising in the past. With the new communication strategy, the film star is used purely as a communication device to portray star quality in every Lux . This can be significantly seen in the latest TV commercial of Lux Crystal Shine where Priyanka Chopra is portrayed asa normal woman .This idea – bring out the star in you – puts the consumer at the heart of the brands‘ promise .T h i s p r o m i s e g o e s b e y o n d t h e f u n c t i o n a l d e l i v e r a b l e s o f s o a p , b e y o n d b a t h i n g a n d t h e bathroom to the world outside. It‘s a world where with Lux on her side, an ordinary woman can impact her world with her own star qualitty Sales promotion, a key ingredient in marketing campaigns, consists of a collection of incentiv e tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion includes tools for
Prominent Sales Promotion Schemes Used By LUX
Lux presented 30 gm gold each to the first three winners of the Lux Gold Star offer from Delhi. According to the promotional offer that Lux unveiled in October 2000, a consumer finding a 22-carat gold coin in his or her soap bar got an opportunity to win a n a d d i t i o n a l 3 0 g m g o l d . T h e f i r s t 1 0 c a l l e r s e v e r y w e e k g o t a 3 0 g m g o l d e a c h . The offer could be availed only on 100 gm and 150 gm packs of Lux soap. Lux Star Bano, Aish Karo contest: All one needed to do was buy a special promotiona l pack of Lux soap. The pack comes with a special scratch card. The 50l u c k y w i n n e r s a n d t h e i r s p o u s e s w e r e f l o w n d o w n t o M u m b a i t o l i v e a d a y l i k e Aishwarya Rai would. They could also be given gift vouchers worth Rs 50,000 from S h o p p e r s ' S t o p a l o n g w i t h a n e x c l u s i v e l y d e s i g n e d N e e t a L u l l a s a r i a n d a b e a u t y makeover by Michelle Tung, Aishwarya's preferred designer and stylist. The pièce derésistance was a dinner date with Aishwarya Rai herself.
Lux celebrated 75 years of stardom with the Har Star Lucky Star activity. All wrappers of Lux had a star printed inside them. If the consumer found written inside the star, any number from ―1‖ to ―5‖, she would get an equivalent discount (in r u p e e s ) o n h e r p u r c h a s e f r o m h e r s h o p k e e p e r . I f t h e c o n s u m e r f o u n d ― 7 5 y e a r s ‖ written inside the star, she will get a year‘s supply of Lux free.
Public Relations: Not only must the company relate constructively to customers, suppliers and dealers, it mus talso relate to a large number of interested publics. A public is any group that has an actual or potential interest in or impact on a company‘s ability to achieve its objectives. PR involves a variety of programs designed to promote or protect a company‘s image or its individual products.
LUX PR Activities: Press relations: Lux has been maintaining constant communicating with its customers and potential customers, of the various developments taking place in the brand by using press relations.
Events: Lux celebrated 75 years of existence in a grand way by unveiling Shahrukh Khan as their latest brand ambassador. Kareena Kapoor, Juhi Chawla, Sridevi and HemaMalini graced the event and made it special. All the stars have endorsed Lux in the past. The event was held at the grand Intercontinental in Mumbai.
Limited edition: Coming up with limited edition of the brand is also a way of attracting attention towards the brand. It creates a buzz and a feeling of urgency to try out the product and helps in promotion of the brand. This strategy was also implemented by Lux by bringing out limited editions like Chocolate Seduction, Aromatic Glow, Festive Glow and Haute Pink.
c. Price: If price is too high then a company may never sell a single item of it. If price is too low theno n e c a n l o s e m o n e y o n e v e r y s a l e o n c e a l l o f c o s t s o f d o i n g b u s i n e s s a r e c o n s i d e r e d . Therefore the key is to price it in such way that it appears attractive to the customer as well as p r o f i t a b l e t o t h e c o m p a n y. H U L s e e m s t o h a v e m a s t e r e d t h i s i d e a . P r i c e s o f H U L a r e considered the most competitive in Indian market. The main fact for this huge success storyis the strategic pricing decision the company has adopted from time to time.H U L a l w a y s g i v e s v a l u e f o r m o n e y t o t h e i r c o n s u m e r s . I t i s k n o w n f o r i t s c o m p e t i t i v e pricing. It has the advantage of quoting a reasonable price due to its economies of scale. HULa l s o c a n q u o t e a v e r y c o m p e t i t i v e p r i c e d u e t o i t s s u p e r i o r t e c h n o l o g y a n d o p t i m u m utilization of inventory. It h as the product r a n g e t h a t m e e t s t h e n e e d s o f a l l c l a s s e s o f consumers. It has the products that are categorized as and mass products. HUL matches its prices with the competitor who is operating in the same category.
d. Place: Cutting-edge distribution network : HUL‘s distribution network is recognized as one of its key strengths -- that which helps reach out its products across the length and breadth of this vast country. The need for a strong distribution network is imperative, since HUL‘s corporate purpose is ―to meet the every day needs of people everywhere.‖At Hindustan Unilever Limited, distribution network is one of the key strengths that help them reach their products across the length and breadth of this vast country. It has 2000+suppliers and associates 7,000 stockists and direct coverage in over 1 million retail out lets across India. To meet the ever-changing needs of the consumer, HUL has set up a distribution network that ensures availability of all their products, in all outlets, at all times. This includes, maintaining favourable trade relations, providing innovative incentives to retailers and organizing demand generation activities among a host of other things. HUL boasts of placing a product across the country in less than 72 hrs. The first phase of the HUL distribution network had wholesalers placing bulk orders directly with company. Large retailers also placed direct orders, which comprised almost 30 per cent of the total orders collected. Today, the goods are transferred from the factory to the company warehouses and are sent to the distributor from there on a daily basis. From the distributor, the stock reaches the market through daily sales. Typically, these include the salesman ing the order of a retail outlet and delivering the goods the next day .Recently HUL has changed its traditional way distribution and came out with a new strategy of distribution. It‗s because of the change in buying pattern of the con sumer due to more disposable income. There are different channels of distribution like Modern Trade, which covers all chains of super markets like Food World, who get the stocks directly from the company. Wholesalers and second leg of big retail outlets called Super Value stores come under the surveillance of the distributor along with the mass retail outlets. There is also this new concept in the HUL distribution channel called Kiosk. Kiosk is a small shop that sell sonly sachets and low priced items (below Rs.10/-). Kiosk also does not come under the surveillance of the distributor .In addition to the ongoing commitment to the traditional grocery trade, HUL is building a special relationship with the small but fast emerging modern trade. HUL's scale enables it provide superior customer service including daily servicing, improving their rangeavailability whilst reducing inventories. HUL is using the opportunity of interfacing more directly with consumers in this retail environment through specially designed communication and promotions. This is building traffic into the stores while yielding high growth for the business.
SWOT ANALYSIS: SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential un favorable conditions for an organization). The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed ,SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity), or if it indicates an obstacle that must be overcome or minimized to achieve desired results (weakness or threat) (Marketing Strategy, 1998).The SWOT analysis summarizes the external environmental factors as a list of opportunities and threats.
SWOT PROFILE OF LUX STRENGTHS: 1.Strong Market Research (door to door sampling is done once a year in Urban and Rural areas) 2.Many variants (Almond Oil, Orchid Extracts, Milk Cream, Fruit Extr a c t s , S a f f r o n , Sandalwood Oil, and Honey to name a few) 3. Strong sales and distribution network backed by HLL 4. Strong brand image 5. Positioning focuses on the attractive beauty segment 6.Dynamically continuous innovation of the product and brand rejuvenation – new variants(Aromatic Glow and Chocolate Seduction and Lux White Spa body wash) and innovative promotions (22 carat gold coin promotion – ‗Chance Hai‘) 7. Perceived to have high value for money (strong brand promotion but relatively lower price which is a winning combination in the popular segment) 8.Though it is in popular segment, it is having mass appeal/market p r e s e n c e a c r o s s a l l segments (15% of the soap market captured by Lux (sales / volume) 9.Unique advantage of having access to resources and assets of HLL
Market Segmentation: ―One cannot be everything to everyone, but can be everything to a selected few‖. This is the basis for segmentation. The definition of segmentation is ―market segmentation is a process of dividing a heterogeneous market into homogeneous sub units. Market segmentation is the identification of portions of the market that a re different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers .A good market segmentation will result in segment that are internally homogenousa n d e x t e r n a l l y h e t e r o g e n e o u s ; t h a t i s , a s s i m i l a r a s p o s s i b l e w i t h i n t h e s e g m e n t , a n d a s different as possible between segments.
Market segmentation of Lux As mentioned above, market segmentation is done so as to satisfy the customers more efficiently. For a brand like Lux, which has a broad customer base, this factor become sabsolutely critical. The segmentations are done basically on the basis of factors like :Lux soap concentrates in the beauty soap category. A brief description of the various factors Lux considers are:
Gender: Lux has been, since its introduction seen as a soap for women. Lux as a brand symbolises beauty. The Lux ads has hosted a bevy of film stars such as from Madhubala, Babita, Hema, Karisma to Kareena all endorsing the goodness of Lux over generations. This was done in order to attract women who wanted to look and feel like the stars they idolised.
Age : Lux is seen to mainly attract customers that fall within the age group of 16 to 35. In order to cater them, Lux comes up with new and interesting variants. One of the latest entrants, Lux Crystal Shine is mainly targeted at the youth .So is the Black Provocateur which symbolises boldness. Another example is the chocolate variant lux which was a novel idea. All these are introduced to catch the attention of the youth.
Income : One of the essential characteristic of an FMCG product is an affordable price which is very important for its fast sales. It‘s the meeting point of demand for a product and its price that decide whether the product will sell or not. And the demand for a product is highly dependent on the income of the customer. Lux is not very costly toilet soap. Its price varies from Rs.15to rs.20.Therefore its target market starts from the middle income group.
Positioning Lux—derived from the word luxury— was launched in 1899 as a laundry soap in the UK. In1925, the brand was extended to the toilet soap category. It was positioned as a beauty soap in India, and HUL has since used successful film actors of the time—such as Leela Chitnis ,Madhubala, Hema Malini and Kareena Kapoor—to endorse the product .Lux‘s secret of longevity has been its consistent evolution—be it the soap colour, packaging o r n e w variants, the brand has banked on innovation to keep its youthful i m a g e i n t a c t . Extending the soap cake to a range of shower gels, liquid soaps and moisturizing bars has helped the brand keep consumers excited and the competition at bay. What has not changed is the consistency in its communication and its positioning. Its taglines—if it‘s good enough for a film star, then it‘s good for you too to Play with beauty— have conve yed the same message over the years. It taps into a n e m o t i o n v e r y c l o s e t o humanity‘s basic need—social interaction. The brand has always hired celebrities when they have reached a certain height rather than using them at the start of their careers. This has helped the customers to relate to their idols on screen .From being a soap for the stars, Lux has recently started positioning itself in such a way that the ordinary woman can relate to the brand. The ments show not the star, but the actress in the character of an ordinary girl or woman, which any woman can identify with. This positioning has helped the brand in striking a chord with the target consumers.
Market segmentation of Lux
Competitor analysis: Internal competitors: Lifebuoy: Born: 1895History: Owned by Unilever Plc., the parent company of Hindustan Unilever Ltd .Status: Has 18% market share in the bathing soaps category, worth Rs6,000 crore Lifebuoy landed on Indian shores in 1895, when the country was in the grip of a plague epidemic. With its positioning as a powerful germicidal and disinfectant, and with a strong car bolic smell, it was what the nation was looking for. But the health advantage waned over time as competitors came out with soaps that promised both health and beauty .It was around 2002 that the product moved from being a hard soap to a mild soap that delivered a significantly superior bathing experience. The new soap had a refreshing fragrance and its overall positioning changed, painting its promise of health in softer, more versatile and responsible hues—for the entire family. The packaging was also changed: The rugged looking packs were soon replaced with a softer pinkish cover. This was followed by a series of ads highlighting the soap‘s germ-fighting benefits. Lifebuoy had become a family soap with hygiene as its core promise. Right from the early days, the brand has preferred effective communication to celebrities. An exception is it recent, limited exposure campaign with cricketer Yuvraj Singh.
External Competitors Santoor: Santoor is the flagship brand in the Wipro Consumer Care & Lighting stable and the 2ndlargest brand of soap in India in the popular segment of the category. The brand enjoys two decades of trust since its launch in 1986 and has grown to be counted amongst the top brands in the Country in an intensively competitive market. Millions of women across the country have discovered the secret of younger looking skin with Santoor. It is a truly unique soap that combines the goodness of natural ingredients - Sandal, Turmeric and natural Skin Softeners .Sandal provides a cooling and soothing effect that softens skin, while turmeric controls formation of skin darkening pigments like melanin, to give skin a radiant glow. Natural Skin Softeners make skin soft and supple. The end result, skin that is so healthy and beautiful, it lies about your actual age! Amongst the first brands in the Country to launch an offering with the t w i n i n g r e d i e n t benefits of Sandal and Turmeric Santoor has over the years moved from a purely natural ingredient based appeal, to one of the most preferred beauty soaps of the day. Today, Santoor is one of the fastest growing soap brands in India. Santoor is available in three variants – Santoor (Sandal & Turmeric), Santoor White (Sandal & Almond milk) and Santoor Chandan which is a soap manufactured with extracts of Sandalwood oil
Data Analysis Do you use soaps for every bath/ shower? •Yes • No
Do you use soaps for every bath/ shower? 100 90 80 70 60 50 40 30 20 10 0
Do you use soaps for every bath/ shower?
Yes
No
Many people use soap for every bath / shower.
2. How many bath soaps do you personally require every month? •1
•2
•3
•4
How many bath soaps do you personally require every month? 45 40 35 30 25 20 15 10 5 0
How many bath soaps do you personally require every month?
1
2
3
4
Many of people uses 4 bath saop in every month.
3. How many bath soaps do you buy for your household every month? •1
•3
•5
•7
How many bath soaps do you buy for your household every month? 50 40 30
How many bath soaps do you buy for your household every month?
20 10 0 1
3
5
7
Maximum 5 bath saops people buy for their household every months.
4. Which kind of bath soaps do you like?(Tick as many you think appropriate) •Foamy
•Transparent
•Glycerin
•Medicical
Which kind of bath soaps do you like? 45 40 35 30 25
Which kind of bath soaps do you like?
20 15 10 5 0 Foamy
Transparent
Glycerin
Medicical
Most of the people like the transparent bath saop.
5.Which brand do you prefer the most? •Lux
•Dove
•Lifebuoy
•Santoor
Which brand do you prefer the most? 70 60 50 40 Which brand do you prefer the most?
30 20 10 0 Lux
Dove
Lifebuoy
santoor
Most of the people prefer Lux and after that Dove bath saop.
6. Do you change from one brand of soap to another? •Yes
•no
Do you change from one brand of soap to an other? 80 70 60 50 40
Do you change from one brand of soap to another?
30 20 10 0 Yes
No
Many of the people does not always change from one brabd of saop to another.
7. Have you ever used Lux soap? •Yes
• No
Have you ever used Lux soap? 90 80 70 60 50 Have you ever used Lux soap?
40 30 20 10 0 Yes
No
Very few people were didn’t used Lux because they don’t like the product.
8. If yes, please specify why? • perfume
•colour
•hygienic
• protect skinsuits your skin
If yes, please specify why? 45 40 35 30 25 20
If yes, please specify why?
15 10 5 0 perfume
colour
hygienic
protect skinsuits your skin
Most of the people used the saop because it cantains perfume.
9. If no, it is because: •Lack of awareness
•Lack of availability
•You find it expensive
•You don‘t like the product
If no, it is because 60 50 40 30 If no, it is because
20 10 0 Lack of awareness
Lack of availabilityYou find it expensive
You don’t like the product
Very few people used Lux saop because they don’t like the product.
10.Which type of Lux Soap you like the most? •Peach Milk
•Cream Milk
•Pink Cream
•Badam Milk
Which type of Lux Soap you like the most 50 45 40 35 30 25 20 15 10 5 0
Which type of Lux Soap you like the most
Peach milk
Cream milk
pink cream
Badam milk
Many people are uses the pink cream saop.
11.What is the size of the Lux Soap you usually purchase? •100g
•200g
•300g
What is the size of the Lux Soap you usually purchase? 45 40 35 30 25 20 15 10 5 0
What is the size of the Lux Soap you usually purchase?
100.g
200.g
300.g
Many of the people usually purchase 200.g size of the Lux saop rather than any other size. 12. How frequently you purchase Lux Soap? •Every Week
•Every fortnight
•Every month
•Occasionally
How frequently you purchase Lux Soap? 70 60 50 40 How frequently you purchase Lux Soap?
30 20 10 0 Every Week
Every fortnight Every month Occasionaly\
People usually purchase Lux saop in every month for use .
WEAKNESSES: 1.Lux is mainly positioned as beauty soap targeted towards women, hence it lacks unisex appeal 2.Usage rate/ wear rate is high and is generally mushy and soggy 3.Some variants like the sunscreen, International variant did not do well in the market 4.Certain ments like the recent one with ShahRukh Khan resulted in controversial interpretations of the message of the ment and lead to some loss of focus (of message of the ments) 5.Stock out problems - replenishment time is high in semi-urban/rural areas 6.Earlier positioning as the ―soap of the stars‖ has somewhat alienated the brand from a portion of the consumers especially in rural areas
OPPORTUNITIES: 1.Soap industry growing by 10% in India 2.Beauty segment‘s Compounded Annual Growth Rate (CAGR) is very high. An indication of this is that Fair and Lovely‘s segment is increasing at a fast rate - Lux must reinforce its presence in the beauty segment 3.More promotions like price-offs and samples 4.Retentive strategy required as the soap segment is in the mature stage of its product lifecycle 5.Line extension – probably with more variants catering to the beauty segment like natural ,herbal soap etc 6.Liquid body wash is currently in the growth stage – Lux should come out with more variants in this segment 7.Level of servicing is high during sales promotion schemes – this could be brought down8. It has a large market share and hence has a strong hold over the market
THREATS: 1.New entrants/local competitors/MNCs would increase the competition (Camay, P&G) 2.High internal competition – Pears also catering the beauty segment (also from HLL stable) 3.Excessive dependence on beauty segment makes Lux vulnerable to changing customer tastes 4.T e c h n o l o g i c a l c h a n g e m a k e s t h e e x i s t i n g p r o d u c t s o b s o l e t e – L u x s h o u l d f o c u s o n technological innovations like Body Wash 5. Its in the maturity stage in the Product Life Cycle and has a threat of slipping down to decline stage if constant reinvention of the brand is not carried out.
BCG Matrix: BCG matrix method is a portfolio management tool developed by Boston ConsultingGroup .It is a method based on the product life cycle theory that can be u sed to know what priorities should be given in the product portfolio of a business unit. To ensure value creation a company should have a portfolio of products that contains both high growth products in need of cash inputs and low growth products that generate a lot of cash. There are2 dimensions: market share and market growth. Placing products in the
BCG matrix results in four categories in a portfolio of a company: Star: High market growth and high market share Cash cows: Low market growth and high market share Question marks: High market growth and low market Share Dogs: Low market growth and low market share Innovation seems to be the main theme of the Indian soap industry in 2008. With the entry of ITC, the stage is all set for a major tussle between the new entrant and existing players in the Rs 6,500-crore branded toilet soaps sector in India. The soap industry is seen to have a market growth rate of about 10%. This shows that industry has a high growth rate. HUL is a market leader in the industry and its soap Lux enjoys a market share of 17 % in India. So according to the concept of BCG matrix any product which has high market growth and market share is classified as STARS. The major objective of products coming in Stars is to maintain their high market share. HUL comes up with various variants in LUX quite frequently in order to maintain their position.
Ansoff model for Lux: The Ansoff Growth matrix is a tool that helps businesses decide their product and marketgrowth strategy. Ansoff‘s product/market growth matrix suggests that a business‘ attempts to grow depend on whether it markets new or existing products in new or existing markets. Lux has been in this industry for more than 75 years.
Conclusion: Lux soap was first launched in the UK in 1899 as a flaked version of Sunlight soap .Subsequently it was launched in the US in 1916, and marketed as a laundry soap targeted specifically at 'delicates'. Lever Brothers encouraged women to home launder their clothes without fear of satins and silks being turned yellow by harshlyes that were often used in soaps at the time. 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 das suitable for home laundry use. Lux is currently a product of Unilever . The name "Lux"was chosen as the Latin word for "light" and because it was suggestive of "luxury‖.In Pakistan Lux was first introduced in 1957. Lux has been following a trend of constant product development and improvement since its inception. This has always proved to be successful for the brand. Therefore a similar strategy can be followed in the future: Lux can go for a high end Ayurvedic variant. Lux has been associated with beauty and feminine grace till now. In the present day consumers are in to naturopathy and believe in natural treatments like the Ayurveda. Keeping with this trend, Lux can foray into Ayurvedic variant. HUL already has Hamam soap in this category. But it is a low priced soap whose target audience is quite different from Lux. This new variant can provide the current customers of Lux with a blend of both class and natural goodness. Today‘s children are tomorrow‘s customers. Children have a major share in the decision m a k i n g process of consumers. Therefore it will be a viable decision to launch L u x K i d s Special soap. By doing this Lux can ―catch them young‖ and get a loyal customer base from them. This variant can be in vibrant colours as opposed to the soft colours used currently. The fragrances can also be made more ―fun‖ and vibrant. Lux has high penetration in the urban and semi urban a reas. However, it has only 19.8% penetration in the rural areas. The rural market has great untapped potential, which HUL ha s not concentrated on till now. Consumers are becoming more and more aware and under going a surge in disposable income. This huge opportunity can be explored by Lux. HUL already has a strong distribution channel in almost all regions. What is needed here is a change in the c o m m u n i c a t i o n s t r a t e g y t o r e a c h o u t t o t h e r u r a l c u s t o m e r s . T h e v a r i o u s c h a n n e l s o f communication should be made more appealing to this rural segment of customers.
Questionnaire: To study the brand performance of Lux bath soap Name : Address: Gender: Age: 1. Do you use soaps for every bath/ shower: •Yes
• No
2. How many bath soaps do you personally require every month? •1
•2
•3
•4
3. How many bath soaps do you buy for your household every month? •1
•3
•5
•7
4. Which kind of bath soaps do you like?(Tick as many you think appropriate) •Foamy
•Transparent
•Glycerin
•Medicinal
5.Which brand do you prefer the most? •Lux
•Dove
•Lifebuoy
•Santoor
6. Do you change from one brand of soap to another? •Yes
•no
7. Have you ever used Lux soap? •Yes
• No
8. If yes, please specify why? • perfume
•colour
•lather
•long lasting
•hygienic
• protect skinsuits your skin
•value for money 9. If no, it is because: •Lack of awareness
•Lack of availability
•You find it expensive
•You don‘t like the product
•Others… 10 From where do you usually purchase Lux Soap? •Nearby Store
•Retail Store
•Whole Seller 11.Which type of Lux Soap you like the most? •Peach Milk
•Cream Milk
•Pink Cream
•Badam Milk
12.What is the size of the Lux Soap you usually purchase? •100g
•200g
•300g 13. How frequently you purchase Lux Soap? •Every Week
•Every fortnight
•Every month
•Occasionally
14. Tick the level of importance according to your preference: Attribute very important, moderately important, least important? •Color •Fragrance
•Thickness
•Lack of awareness
•Lack of availability
•You find it expensive
•You don‘t like the product
•Others… 10 From where do you usually purchase Lux Soap? •Nearby Store
•Retail Store
•Whole Seller 11.Which type of Lux Soap you like the most? •Peach Milk
•Cream Milk
•Pink Cream
•Badam Milk
12.What is the size of the Lux Soap you usually purchase? •100g
•200g
•300g 13. How frequently you purchase Lux Soap? •Every Week
•Every fortnight
•Every month
•Occasionally
14. Tick the level of importance according to your preference: Attribute very important, moderately important, least important? •Color •Fragrance
•Thickness
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