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ASSIGNMENT ON Lux soap Submitted To Dewan Md. Nur A Yazdani Lecturer Faculty of Business ASAUB Submitted By NO Name ID No Secti on Batc h INTERNATIONAL BUSINESS 1

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Page 1: Documentit

ASSIGNMENT ON

Lux soap

Submitted To Dewan Md. Nur A YazdaniLecturer Faculty of Business

ASAUB Submitted By

NO Name ID No Section

Batch

1. Zahir Uddin Ahamed 071-12-101 A 1st 2. Mutasim Billah Ratul 071-12-108 A 1st

3. Hasanuzzaman 071-12-113 A 1st

INTERNATIONAL BUSINESS

1

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Objectives

The objectives of the report are:

To know about the selected product broad marketing strategy that means market positioning,

promotion, distribution.

To know the International product or services

To know the different three types international market on the Lux soap

To develop the new promotional plan for each international market.

Methodology

We have made this assignment by using the secondary source of information, which is the Internet.

We have used primary source of information. Many relevant websites were searched for gathering

required information. But we also collect much information from the international business &

principle of marketing.

Limitation

We have faced various obstacles during the making of this assignment. These are following below:

Enough information were not found in the web sites

Lack of knowledge for preparing a report in a perfect way

Problems were occurred during working at lab. Because the lab was small to facilitate this

large number of student. So the access in web was not so easy.

There were many class tests, mid-term, presentations and other assignments. This is why we

couldn’t make this report using enough time.

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Introduction

Lux is a brands name of Uniliver Company. The name Lux means ‘light’ and it’s a Latin word. Lux

soap was first launched in the UK in 1899 as a flaked version of Sunlight soap. Lux has been

making waves since 1924, when it launched the world's first mass-market beauty soap at a fraction

of the cost of some expensive brands. Lux was first introduced as toilet soap in 1925. It arrived in

the UK in 1928, offering people a chance to pamper themselves for a modest price. 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 1990s, Lux responded to the growing trend away from traditional soap

bars by launching its own range of shower gels, liquid soaps and moisturising bars. Lux beauty

facial wash, Lux beauty bath and Lux beauty shower were launched in 1992. In 2004, the entire

Lux range was 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.          

Source: http://en.wikipedia.org/wiki/Lux_(soap)

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Product concept

Product concept holds that consumer will favor products that in quality, performance and

innovative features. Under this concept marketing strategy focuses on making conditions product

improvements. Lux product is a Uniliver company product. They need to develop product and

service features, design a quality level, brand name on packaging. Lux is a branding which has

many different products. Lux soap products are used by customer. Every people need to use the

Lux soap product. So Lux product is introduced to every people for better quality product.

Technological change makes the existing products obsolete – Lux should focus on technological

innovations like Body Wash Lux soap product provides in France, Germany, U.S.A, Italy and

Brazil. The product range of soap such as Lux Nature Pure, Lux Aqua Sparkle, Lux Strawberry

Cream, and Lux Peach Cream.

Servicing

Lux soap product is serving in many countries. When designing marketing programs after the

product provides in all countries. The Lux soap product has designing marketing programs

intangibility, inseparability, and variability and perishes ability. By servicing of Lux soap product

the company get gaining profit. Marketing by a service firm to train and effectively motives its

customer contract employees and all the supporting service people to work as a team to provide

customer satisfaction.

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Branding and packaging

A brand is an identifying mark for products on services. When a company registers a brand

legally, it is a trademark. A brand gives a product or service instant recognitions may save

promotional cost. Lux is a brand name of Unilever Company. Under this branding have many

products such as Lux soap, Lux shampoo, Lux hairspray, Lux liquid soap. Branding can add

value to a product. Brand names help consumers identify products that might benefit them.

Brands also tell the buyer something about product quality. Branding also give the seller several

advantages. The brand name becomes the basis on which a whole story can be built about a

product special quality.

Packaging involves designing and producing the container for a product. This package includes a

products primary container. Companies are realizing the power of good. Packaging to create

instant consumer recognition of the product. Product safety his also become a major packaging

concern.

Lux Soaps range

Lux Strawberry and Cream: Every woman wants to be indulged! Use Lux Strawberry

and Cream to fill your skin smooth and silky. Lovingly created with a sumptuous mix of

luscious strawberries and moisturizing cream extracts that leaves your skin soft.

Lux Peach and Cream: No women can resist the pleasure of being pampered. Use Lux

Peach and Cream, lovingly created with the blend of juicy peach and moisturizing cream

extracts, for a velvety, soft skin. Just gorgeous!

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Aqua Sparkle: Wake up to a body that looks fresh and full of life. Lux Aqua Sparkle,

with refreshing mineral salts and seaweed extracts, is the best kept secret to help renew

your skin from bored to full of life! There won’t be dull days!

Crystal Shine: Blackout, silence! A breathtaking moment: your first step on the stage. A

solitary spotlight on you. When your skin meets the drops of moisturizer and the shine of

crystals that you can see and feel, there is a silent applause. Crystal Shine!

Nature Pure: Don’t let lazy skin get you down. Nature Pure is rich with chilled mint and

refreshing cucumber extracts that help revive you. Go from zero to fabulously exciting in

seconds.

Lux Nature Pure Lux Aqua Sparkle Lux Strawberry & Cream Lux Peach & Cream

Source: http://www.unilever.com.bd/ourbrands/personalcare/Lux.asp

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Marketing strategy

Marketing strategy is developed on the basis of product quality. Since the Lux soap is a usable and quality product so the company has more powerful marketing strategy. Marketing strategy describes the target market, the planned product positioning and the sales, market share and profit goals. Besides it describes outlines the products planned price, distribution and marketing budget. Marketing strategy is developed for a new product based on the product concept. The Lux soap product provides in local area and foreign area for better quality product. Then increasing the marketing strategy and market operate hoe, when, where will service the product. The soap product is demandable product in market. Consumer buys the product for fulfilling of demand. In this circumstances product is playing vital role for marketing strategy.

Market positioning

Market positioning is arranging for a product to occupy a clean, distinctive and desirable place

relative to competing products in the minds of target consumers. Usually marketers plan positions

that distinguish their products from competing brands and give strategic advantages in their

target market. Before market positioning the company should have market segmentation and

target market .At first we discussed about market segmentation it means dividing a market into

smaller of buyers distinct needs, characteristics, or behavior or who might require product or

marketing mixes. The company identifies different way to segment the market and develop

profiles of the resulting market segments. Such as: Geography segmentation calls for dividing the

market into different geographical units Such as nations, regions, states, counties, cities, pr even

neighborhoods. A company may decide to operate in one or a few geographical areas, or to

operate in all areas but pay attention to geographical differences in needs and wants.

Demographic segmentation divides the market into groups based on variables such as ages,

gender, family size, family life style, income, occupation, education, religion, race, generation, and

nationality. Demographic factors are the most important bases for segmenting customer groups.

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Psychographic segmentation divides buyers into different groups based on social class, personal

characteristics. Lux soap is affecting their target consumer for using. Because they are providing

different favorable soaps in global market. In this case, Lux soap day by day is increasing their

global consumers.

Marketing promotion

Promotion is the presentation of messages intended to help sell a product or service. For the

market promotion the company should establish Advertising, sales promotion, and public

relation.

Advertising

Advertising can reach masses of geographically dispersed buyers at a low cost. We see the

advertising of Lux soap product by TV, News. The product is promoted by advertising since most

of people must need the idea of product. Generally the soap products are useable product to

customer so this advertising is short time.

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Personal selling

Personal selling is the most effective tool at certain stages of the buying process. It involves

personal interaction between two or more people. In case of Lux soap product, with personal

selling. The buyer usually feels a greater need to listen and respond. Actually Lux soap products

are promoted corresponding person to person.

Sales promotion

Advertising often works closely with another promotion tool sales promotion. Sales promotion

consists of short term incentives to encourage purchase or sale of a product. Whereas the

Advertising offers reason to buy a product sales promotion offers reason to buy now.

Sales promotion objective vary widely. Seller may use consumer promotion to increase short term

sales or to help the build long term market share.

Direct marketing

There are many forms of direct marketing – telephone marketing, direct mail, and online

marketing. The message is normally directed to a specific person. Direct marketing is well suited

to highly targeted marketing efforts and to building one to one customer relationship.

Sources: Principles of marketing, Phillip kotler & Gary Armstrong (11th edition), Pages no 455-475.

(Chapter 15)

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Distribution

A company may accurately assess market potential, design goods or services for that market, price

them appropriately and promote them to probable consumer. Distribution is the course – physical

path or legal title – that goods take between production and consumption. In international

marketing, a company must decide on the method of distribution among countries as well as the

method within the country where final sale occurs.

Internal handling

Distribution may be handled internally –

o When volume is high.

o When companies have sufficient resources.

o When price or technology is high or when there is complex after sale servicing.

o When there is need to deal directly with the customer due to the nature of the product.

o When the customer is global.

o To enable the company to gain a competitive advantage.

Distributor’s qualifications

Some evaluation criteria for distributors include their –

o Financial strength.

o Connections with customer.

o Other business commitments.

o Other resources.

Source: International Business, “Tenth Edition”, “John D. Daniels, Lee H. Radebaugh, Daniel P. Sullivan”.

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PROMOTIONAL PLAN FOR THREE INTERNATIONAL MARKETS

USA International Market

Market position of Lux soap

The marketing position is standard in USA for servicing the Lux soap. There have more

competitive advantage. Customers are buying the Lux soap product. Generally the product price is

limited even the product is high quality. It is need able product so the country segments the product

in all area. So the marketing position is standard for good economic condition, price stability, steps

the Government, customer satisfaction. USA, as international market the country sales the product

in all country and the country earns profit by servicing the Lux soap product. The government

gives permission and takes action for processing the product. So the product continuous provide in

market for fulfilling the demand. The country market competitive is high with other international

market. For better quality product, the company must the effectively communicate and deliver the

chosen position to the market. Goal is to create and implement effective marketing strategies for

great ideas to become real, and expose our clients to the masses.

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Market Promotion of Lux soap

As international market USA, companies promote Lux soap to the target market. They give some

benefits for identifying product in world market. USA marketing Promotion is more promoting

direct marketing and advertising. We get more information from direct marketing such as online

servicing, telephone, Fax. Besides as advertising they give television advertising for this reason the

market strategy is better to promote in international market. Advertising can succeed only if

Advertisements gain attention and communicate well. Good Advertising messages are especially

important in todays costly. The advertising is a play vital role the identification for market

Promotion. Whether it is brand management, media buying, creative services, Internet marketing,

or public relations, our goal is to reach the with messaging to facilitate the selling process. Using a

mix of marketing techniques including the latest Internet technologies as well as traditional

marketing communications methods, we create targeted programs maximizing the market reach,

while minimizing cost.

Sales promotions have traditionally been heavily regulated in many advanced industrial nations,

with the notable exception of the United States.

Market Distribution of Lux soap

The country goal is to create and implement effective marketing strategies for great ideas to

become real, and expose our clients to the masses. The Lux soap product is distributed by different

channel. USA International Market, they Distribute the Lux soap product by direct and indirect

selling. A distributor sells to a customer who is neither wholesaler nor retailer

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India International market

Before developing the new promotional plan we need to know about the market positioning and

distribution of the Lux soap in India market.

Market position of Lux soap

Lux in India is manufactured by Hindustan Lever Limited (HLL), a subsidiary of the multinational

Unilever Limited. Lux was initially a premium brand. The increasing competition in the soap

category forced Lux to rethink on its targeting strategy. The brand had a choice either to

compromise on market share and uphold the premium positioning or to retain the market share and

dilute the positioning. Lux wanted to ensure that the brand be positioned as premium but also did not

wanted to compromise on the share. Thus born International Lux which is the premium variant and

the affordable segment was catered by Lux beauty soap.

Although the brand enjoyed success and has sustained its leadership position, of late this brand has

been facing issues of stagnation. The stagnation is caused by the plethora of brands competing for the

market share and the scope for differentiation has reduced to almost nil. Together with the rush for

celebrities to endorse anything from salt to cars, Lux is finding it difficult to sustain growth in this

cluttered market.

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Market Distribution of Lux soap

Hindustan Lever Limited (HLL) has been constantly bringing new and world-class products for

the Indian people to remove the daily drudgery of life.  Over 90% of the country’s households

use one or more of Lux soap. Mainly it is distributing the Hindustan Lever Limited in Indian

market. The Lux soap Sales & Distribution Strategy Institutional Selling Distributor

Management Trade Marketing Sales Strategy Framework Sales Management Control System

SPIN Approach To Selling Sales Force Management Incentive Planning Sales Meeting &

Everyday Effectiveness. Distribution Strategy Framework Buying Situation Account Targeting

Strategy Buying Center Organizational Buyer Behavior Relationship Strategy Sales Strategy

Account Salesperson Buying Process Sales Channel Strategy Buying Needs Selling Strategy.

Source: http://marketingpractice.blogspot.com/20

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Germany International Market

Market position of Lux soap

To ensure our customers a firm position of any product coming from abroad. Being as a group,

a friend and collaborator of each one and of all those companies all over the world. We offer

following services and resources which are within our scope. A plan must identify a target

customer group, explain what those customers want, and develop positioning strategy. As a

result of our extensive experience in marketing and numerous business relations in Germany,

you will be on the right track to push forward your sales activities toward the German market

and to develop a successful business.

Market Promotion of Lux soap

The product has experienced in developing the most effective and efficient online marketing

strategies for its clients. Strategic online initiatives are most effective when they are integral

components of corporate goals, defining how the organization will successfully engage

customers, prospects, and competitors on the Web and across all channels. As the customer

constitutes the source of a company's revenue, initiatives are closely linked with sales. Germany

is notorious for having the strictest regulations. Famous examples include the car wash that was

barred from giving free car washes to regular customers.

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Market Distribution of Lux soap

Distribution Strategy provides a Selling Distributor Management which Trade Marketing

Channel Design Management Control System Channel. The best tips and advice from library of

articles, a, videos business tools. As international market, the company reaches to customer by

wholesaling, retailing .Basically Lux soap product are distributed by Business to Business. Mainly

Lux soap is distributing by the on-line distribution system in Germany market. . Distribution

Strategy Framework Buying Situation Account Targeting Strategy Buying Center Organizational

Buyer Behavior Relationship Strategy Sales Strategy Account Salesperson Buying Process Sales

Channel Strategy Buying Needs Selling Strategy.

Findings

We find out Lux is mainly positioned as beauty soap targeted towards women, hence it lacks

unisex appeal

We find out High internal competition – Pears also catering the beauty segment.

We find out Strong brand image.

We find out Soap industry growing by 4% in India.

We find out Level of servicing is high during sales promotion schemes – this could be brought

down.

We find out India promoting the production different channel such as TV, News.

We find out Germany promoting the production by online service.

We find out U.S.A promoting the production online servicing, telephone, Fax.

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Conclusion

A promotional plan can have a wide range of objectives, including: sales increases, new product

acceptance, creation positioning, competitive retaliations, Promotion, and distribution. The

competitive advantage is high USA International Market. They have strong servicing for positioning,

promotion, and distribution.