product life cycle of lux soap
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Production & material managementLife cycle of Lux soap
A new product progresses through a sequence of stages from introduction togrowth, maturity, and decline. This sequence is known as the product life
cycle and is associated with changes in the marketing situation, thus impactingthe marketing strategy and the marketing mix.
The product revenue and profits can be plotted as a function of the life-cyclestages as shown in the graph below:
Product Life Cycle Diagram
Introduction Stage
In the introduction stage, the firm seeks to build product awareness anddevelop a market for the product. The impact on the marketing mix is asfollows:
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Product branding and quality level is established, and intellectualproperty protection such as patents and trademarks are obtained.
Pricing may be low penetration pricing to build market share rapidly, orhigh skim pricing to recover development costs.
Distribution is selective until consumers show acceptance of theproduct.
Promotion is aimed at innovators and early adopters. Marketingcommunications seeks to build product awareness and to educate
potential consumers about the product.
Growth StageIn the growth stage, the firm seeks to build brand preference and increasemarket share.
Product quality is maintained and additional features and supportservices may be added.
Pricing is maintained as the firm enjoys increasing demand with littlecompetition.
Distribution channels are added as demand increases and customers
accept the product. Promotion is aimed at a broader audience.
Maturity Stage
At maturity, the strong growth in sales diminishes. Competition may appearwith similar products. The primary objective at this point is to defend marketshare while maximizing profit.
Product features may be enhanced to differentiate the product from that
of competitors. Pricing may be lower because of the new competition.
Distribution becomes more intensive and incentives may be offered toencourage preference over competing products.
Promotion emphasizes product differentiation.
Decline Stage
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As sales decline, the firm has several options:
Maintain the product, possibly rejuvenating it by adding new featuresand finding new uses.
Harvest the product - reduce costs and continue to offer it, possibly to aloyal niche segment.
Discontinue the product, liquidating remaining inventory or selling it toanother firm that is willing to continue the product.
The marketing mix decisions in the decline phase will depend on the selectedstrategy. For example, the product may be changed if it is being rejuvenated, orleft unchanged if it is being harvested or liquidated. The price may be
maintained if the product is harvested, or reduced drastically if liquidated.
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Lux soap was first launched in the UK in 1899 as a
flaked version of Sunlight soap. Subsequently it waslaunched in the US in 1916, and marketed as a laundry soap targetedspecifically at 'delicates'. Lever Brothers encouraged women to home laundertheir clothes without fear of satins and silks being turned yellow by harsh lyesthat were often used in soaps at the time. The flake-type soap allowed themanufacturer some leeway from lye because it did not need to be shaped intotraditional cake-shaped loaves as other soaps were. The result was a gentlersoap that dissolved more readily and was advertised as suitable for homelaundry use.Lux is currently a product of Unilever. The name "Lux" was chosen as theLatin word for "light" and because it was suggestive of "luxury."Lux toilet soap was introduced as a bathroom soap in the US in 1925, and inthe UK in 1928 as a brand extension of Lux soap flakes. Subsequently Luxsoap has been marketed in several forms, including handwash, shower gel andcream bath soap.Lux soap was launched inIndia in 1929. The very first advertisement in 1929featured Leela Chitnis as its brand ambassador. It was branded in India as "the
beauty soap of film stars'.As of June 2009 Lux is sold in over 100 countries .
From the 1930s right through to the 1970s, Lux soapcolours and packaging were altered several times toreflect fashion trends. In 1958 five colours made up therange: pink, white, blue, green and yellow. People enjoyed matchingtheir soap with their bathroom colours.
In the early 1990s, Lux responded to the growing trend away fromtraditional soap bars by launching its own range of shower gels, liquid
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soaps and moisturising bars. Lux beauty facial wash, Lux beauty bathand Lux beauty shower were launched in 1992.
In 2004, the entire Lux range was relaunched in the UK & Ireland toinclude five shower gels, three bath products and two new soap bars.2005 saw the launch of three exciting new variants with dreamy namessuch as Wine & Roses bath cream, Glowing Touch and SparklingMorning shower gels.
Did you know?
Since the 1930s, over 400 of the worlds most stunning and sensuouswomen have been proudly associated with Lux advertisements. Marilyn
Monroe, Brigitte Bardot, Demi Moore and, more recently, our ownCatherine Zeta-Jones, have all been part of the Lux glamour story.
The name Lux means light in Latin, however the name was chosen forits play on the word luxury.
Lux soap was first launched in the UK in 1899 as a flaked version of Sunlightsoap.Subsequently it was launched in the US in 1916, and marketed as laundry
soap targeted specifically at 'delicates'. Lever Brothers encouraged women tohome 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 soapallowed the manufacturer some leeway from lye because it did not need to beshaped into traditional cake-shaped loaves as other soaps were. The result wasa gentler soap that dissolved more readily and was advertised as suitable forhome laundry use Lux is currently a product of Unilever. The name "Lux" waschosen as the Latin word for "light" and because it was suggestive of "luxury."Lux soap was introduced as bathroom soap in the US in 1925 and in the UK in1928 as a brand extension of Lux soap flakes. Subsequently Lux soap has beenmarketed in several forms, including hand wash, shower gel and cream bathsoap.Lux soap was launched in India in 1929. The very first advertisement in 1929featured Leela Chitnis as its brand ambassador. It was branded in India as "the
beauty soap of film stars'.As of June 2009 Lux is sold in over 100 countries
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Lux launched the worlds first mass-market beauty soap in the US in 1924 &had beenlaunched in India in 1929.At that time there was only one competitor of Lux, which was from its own
brand LIFEBUOY.In the initial stages Lux was introduced in the major cities of INDIA likeCalcutta, Mumbai etc.
MARKETING OBJETIVES - was to create the product awareness and toattract thecustomers towards the product.
The Lux MARKETING STRATEGIES in the initial stages :
Product = They offer only on product in the market. They did not come upwith thedifferentiated product.Price =In the initial stages of the product, they offer the relatively higher price
than their competitor (LIFEBUOY). Because, they want to recover their initialcost of making the product.
Advertising =In the initial stages, they allocate more advertising budgetSo that more and more customers could be attracted towards the product.In ads they targeted the early adopters, who were readiest to buy the product.The first ambassador, Leela Chitnis. Distribution =was selective and only covers the major cities of INDIAto get recognition in those cities. Their distribution channel was through: Manufacturer Wholesaler &
Retailer
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In the growth stage, their sales rapidly started rising.
They have expanded their market to the other cities of INDIA.MARKETING OBJECTIVES = The marketing objectives of the Lux wereto expand their market to the other cities of INDIA.
Another objective was to maximize more market share.
In the growth stage, company had the following MARKETING
STRATEGIES :
Product = In the growth stage, the company had offered the same product in
the market.Price = In this stage, the company had changed their price to some extent
because of maximizing the market share. ( Slightly cut down the prices )
Advertising = In the growth stage, they had increased their advertising budget
as in the initial stages because of attracting the new customers or to retain the
existing customers.
Sharmila Tagore, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit,
Sridevi
Distribution = In this stage, company had expanded their market to the other
cities of INDIA. Their distribution channel was the same as in the initial stages
of the product.
Promotion = In the growth stage, the company had also used the differentproportioning strategies to attract the new and the existing customers
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They modified the product by adding some changes in the product.
In this stage, few competitors enter into the market like ( CINTHOL,FAIRGLOW, SANTOOR, CHANDRIKA, FIAMA DI WILLS and VIVEL ).
The company has expanded their market to almost all the cities of INDIA.
MARKETING OBJECTIVES = The marketing objective of Lux is tomaximize more profit while defending the market share. And to expand themarket to all the cities of INDIA.
MARKETING STRATEGIES In this stage are based on:Product= The Lux has made the modification in the product by introducing:
Lux Almond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Sandalwood, LuxRose,Lux International, Lux Chocolate, Lux Aromatic Extracts, Lux Oil andHoney.etc
Price = The Lux products are now available at higher prices in the market, thereason behind is that the companys marketing objectives is to maximize more
profit.
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Distribution = Now Lux products are available in almost all the cities ofINDIA. Their distribution channel is same as in the initial stage.
Advertising = In this stage Lux advertising has been reduced to some extentbecause of the more brand awareness in the minds of customers.Recently, they have shown Aishwarya Rai , Kareena kapoor & Shah Rukhkhan.
PROMOTIONAL OFFERS :---- Like buy 3 get 1 free.
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Besides of all campaigns for the sales promotion of Lux .The reasons for itsdecline are :
1. Currency fluctuations: Unilever products are in over 100 countriesworldwide, As a result, it is exposed to adverse currency fluctuations.For instance, in 2004, a 5.9% decline in turnover was primarily due to a 4%appreciation in the average Euro exchange rate.
2.SLOWDOWN: In year 2008 - 09 due to hard economic conditions inINDIA and other countries the sales were highly affected as the consumerstarted looking for some alternate products with a cheaper price than Lux.
3.Competition: Lux has been facing competition from HUL itself (Lifebuoy)& from other companies like:-Godrej Consumer Products : GCPL, Indias second largest soap maker with9.2% market share.with leading brands such as CINTHOL, FAIRGLOW & NIKHAR.
Fairglow brand, India's first Fairness soap, has created marketing history as oneof the most successful innovations
Wipro : The presence of Wipro in the toilet soap industry can be seen through
their brands such as SANTO OR and CHANDRIKA. In the southern market ofIndia it is a major market player in toilet soap.
ITC :It entered the segment last year and has made a strong headway in ashort time by growing to 1.75% in just five months. With the brands like:Superia, Fiama Di Wills and Vivel
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PRICE:-price level,
Discount,
Special offers.
PLACE:- supermarkets,
Shops,
Mail orders,etc.
PRODUCT:- quality,
Design,
Image,
Name &
Packaging.
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PROMOTION:- advertising,
Competitions,
Sampling &
In-store display.
PRICE:-
Competitive prices: Neither high nor low
Price segment of toilet soaps
Segments Prices/weightPremium >Rs.15/75gms
Popular Rs.8-15/75gms
Economy
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PRODUCT:-
Product classification:- Tangible
Non durable
Logo:-
Labelling:- Lux trade character or logo is present prominently in the package.
Female models.
Displayed graphically- Key ingredients.
Packaging:- Differents colours- different
variants(Saffron-Saffron
variants & Pink Rose extracts etc.)
Packages size-100gm, 120gm, 150gm.
Launched- Mini Lux- 45gm- Rs.5/-
Promiinent variants:- Lux almond Lux orchid Lux pearl glow
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Lux renewal massage Lux crystal shine Lux rose
Lux
international Lux chaocolate Lux aromatic extracts
Creamy delight Lux Purple lotus Lux
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Lux body wash
Lux Shower gel range
Lux hand wash
Lux SPA
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PROMOTION:- Sales Promotion:- Lux presented 30gm gold each to the first
three winner of the Lux Gold Star offer
from Delhi. According to the promotional offers that Lux unveiled in
October 2000, a consumer finding a 22-carat gold in his or her soap bar
got an opportunity to win an additional 30gm gold. The first 10 caller of
every week got a 30gm gold each. The offer could be availed only on
100gm and 150gm pack of Lux soap.
Lux star bano, Aish karo contest. All one neede to do was
to buy a promotional pack of Lux soap. The pack comes
with a special scratch card. The 50 lucky winner and their
spouse were flown down to Mumbai to live a day like
Aishwarya Rai would. They could also be given gift
voucher worth Rs.50,000/- from Shopper Stops alongwith an exclusively designed by Neeta Lulla and a beauty makeover by
Michelle Tung, Aishwaryas preferred designer and stylist. The piece de
resisitance was a dinner date with Aishwarya Rai herself.
Lux celebrated 75year of stardom with the
Har Star Lucky Star Activity. All wrappers
of Lux had a star printed inside them. If theconsumer found written inside the star, any
number from 1 to 5, he or she would get an
equivalent discount (in rupees) on his or her
purchase from his or her shopkeeper. If the consumer found the 75
years written inside the star, he or she will get a years supply of Lux
free.
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Lux FNF Lux Shampoo
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Lux, the brand synonymous with beauty and stars, now takes its legacy a notch
higher by introducing the Lux Superstar offer. The
offer gives an opportunity to consumers to meet
Bollywood's Superstar couple Abhishek Bachchan
and Aishwarya Rai Bachchan in London.
Now anyone can get a taste of stardom and rub
shoulders with the power couple, all you need is to
purchase Lux soap and complete a slogan to stake a claim to an evening full of
glamour, glitz and glory. 12 lucky couples will be flown to meet Abhi & Ash in
London. Well, this is not all... there are exclusive signed photographs of thecouple to be won.
12 lucky couples could win a chance to go to London and spend an evening
with Abhishek and Aishwarya Rai Bachchan.
Promotion:-The first ambassador Leela Chitnis featured in a Lux advertisement which
flagged off the Lux wagon. She gave way to a galaxy of stars which includeMadhubala, Nargis, Meena Kumari, Mala Sinha, Rekha, parveen babi,Sharmila
Tagore, Waheeda Rehman, Sairah Banu, Hema Malini, Zeenat Aman, Juhi
Chawla, Madhuri Dixit, Sridevi, Aishwaria Rai Bachchan, Kareena
Kapoor,Priyanka Chopra and most recently Katrina Kaif.
The last frontier for most actors aspiring to stardom is becoming a Lux
ambassador. The brand has outlasted many soaps.
From the beginning, Lux became a household name in the country.
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in creating excitement in the market. Some argue that HLL was testing a newpositioning appeal to male users while others say that
it was a one time endorsement to break the clutter. Arecent ad of Lux featured the golden coupleAishwarya Ra i Bachchan and Abhishek Bachchan.They were paid Rs.25crore for this ad. But in all these advertisements thecelebrity never shadowed thebrand.From the beginning Lux, by using a leading film starof the time has fulfilled the consumers aspirations of us ing beauty soaps viathe rationale if its good enough for a film star, its good for me. This latermoved into a transformation role of having a bathwith Lux, which transports the user into a fantasyworld of icons, film stars and fairy lands.
Events:Lux celebrated 75 years of existence in a grand
way by unveiling Shah Rukh Khan as their latest brand ambassador.
Kareena Kapoor, Juhi Chawla, Sridevi and Hema Malini graced the event andmade it special. All this stars have endorsed Lux in the past. The event was heldat the Grand Intercontinental in Mumbai.
South Indian:-
JAYALALITHA (1970)
SHRIYA SHARAN
Change in communication strategyLux was always changing with the times. Whether in terms of product or interms of promotions, the brand kept the consumers excited. Lux was initially a
premium brand. It was being projected as an aspirational brand and the
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endorsements by stars further reinforced the positioning. However thecommunication was slowly seemed to be losing relevance, as consumers were
beginning to question if the film star actually used the brand. The increasingcompetition in the soap category also forced Lux to rethink on its targetingstrategy. Several competitive beauty soap brands had begun advertising usingsimilar methods of communication. The brand had a choice either tocompromise on market share or dilute the positioning. In this context, theglobal brand team for Lux developed a new communication strategy. Thisstrategy -bring out the star in you -for the first time moves the brand away fromthe long running film star route. The film stars still features in the newcommunication but not as her gorgeous self but rather as an alter ego/projectionof the protagonist, for a few seconds of the entire ad. Thus, for the first time thefilm star was used as a communication device and not as the main feature ofthe ad. The move away from the film star and her fantasy world to the regularLux user with the focus on the protagonists star quality is a change from thenorms set by the Lux advertising in the past. With the new communicationstrategy, the filmstar is used purely as a communication device to po rtray star quality in everyLux user. This can be significantly seen in the latest TV commercial of LuxCrystal Shine where Priyanka Chopra is portrayed as a normal woman. Thisidea-bring out the star in you -puts the consumer at the heart of brands promise.
The promise goes beyond the functional deliverables of soap, beyond bathingand bathroom to the world outside. Its the world where Lux on her side, anordinary woman can impact her world with her own star quality. This is asuccessful attempt to bring the brand closer to its users and give it a more usefuland contemporary image. Breaking away from tradition, HLL resorts to a maleand metro sexual Shah Rukh Khan to revive Lux which turned 75 in 2005.
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Marketing Project Reporton Lux Soap
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By:
Amit Kumar SinhaPGDMRM-002IPE, Hyderabad
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Contents:Company Profile HUL
Distibution Channel - HUL
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Product Mix HUL
Overview Lux SoapMarketing Mix
SWOT Analysis
Competitor Analysis
Market Segmentation
Recommendation
Reference
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Company Profile - HUL
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Company Profile - HUL
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A 52% owned subsidiary of Anglo Dutch giant Unilever.
India 1888
India largest FMCG company
Touching 2 out of 3 Indian consumer
20 distinct categories Home and personal care products, food
and beverages.
HLL HUL
100 factories India Manufacturing its diverse product range
Headquarter: Mumbai
Market share Toilet soap category 54.3%
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Revenue Percentage:
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Distribution Channel - HUL
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Distribution Channel - HUL
2000+ Suppliers and associates
4000 Redistribution stockists
Covering 1 million retail outlets
Reaching 250 million rural consumers
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Product Mix- HUL
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The width of the HULProduct mix: The width of the product mix refers to the
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number of different product line the company
carriesE.g: Personal wash
Laundry
Skin care
Oral care
Deodorants
Colour cosmeticsAyurvedic personal and health care
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Shampoo
TeaCoffee
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Foods
Ice creamWidth = 12
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The lenght of the HULProduct mix: The Lenght of the product mix refers to the totalnumber of items in the product mix.E.g: Personal wash: Lux, Lifebuoy, Liril, Hamam,Breeze, Dove, Pears, Rexona
Laundry: Surf excel, Rin, WheelSkin care: Fair & Lovely, Ponds, Vaseline, Aviance
Oral care: Pepsodent, Close up
Deodorants: Axe, Rexona
Colour cosmetics: Lakme
Ayurvedic personal and health care: Ayush
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Shampoo: Sunsilk, Clinic
Tea: Broke bond, Lipton.Coffee: Bru
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Foods: Kissan, Annapurna, Knorr
Ice cream: Kwality wallsWidth = 30
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The Depth of the HUL Productmix: T h e d e p t h o f t h e p r o d u c t m i x r e f e r s t ot h e n u m b e r o f variants of each product offered in the lineE.g: If close up toothpaste comes in three formulation and inthree sizes, close up has a depth of 9 (3*3)
The Consistency of the HULProduct mix:The consistency of the product mix refers to how closelyrelated the various product lines are in the use, productionrequirement, distribution channel or in any other manner.HUL Product line are not consistent because of its large width.
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Overview : Lux Soap 1916 Laundry soap
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1925 Bathroom soap
India 1929
First brand ambassador: Leela Chitnis (1929)
Market share is almost equal to Lifebuoy
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Marketing Mix:
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Product:Product Classification:Tangible
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Non durable good
Lux and other soaps fall into thecategory of convenience good.
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Product Life Cycle:Maturity Stage
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Prominent Variants:Lux almond
Lux orchid
Lux fruit
Lux saffron
Lux sandalwood
Lux rose
Lux international
Lux chocolate
Lux aromatic extracts
Lux oil and honey glow etc.
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Logo:Labelling:
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Lux trade character or logo is
present prominently in the packageFemale modelDisplayed graphically Key
ingredients
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Packaging:
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Price: Competitive prices: Neither highnor low
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Place: HUL distribution network key
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strength (Which helps reach out its
product across the length and widthof the vast country)
2000+ Suppliers & Associates 7000 Stockists
Direct coverage in over 1 millionretail outlets
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Network:Factory Company warehouses Distributor Market
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Factory Wholesaler & Big retailers
(Bulk orders) 30% Sales
Promotion:
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Active since 1929
Featured all top actress of their times.
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Idea: if it is good enough for a film star, it is goodfor me.
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First Male BrandAmbassador:
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South India:1970 JayalalithaShriya Sharan
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Sales Promotion: Lux gold star offer: 22 Carat Goldcoin in the Soap First 10 caller
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(Extra 30 gm gold)
Lux star bano, Aish karo contest: A
special promotional pack of lux soap Scratch card -50 lucky winner gotthe chance to meet Aishwarya rai.
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SWOT AnalysisStrengths:
Strong market research (Door to door sampling once in a year Rural andUrban area.)
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Many variants (Almond oil, Orchid extracts, Milk cream, Fruit extracts,Saffron sandalwood oil and Honey).
Strong sales and distribution network backed by HUL. Strong brand image Dynamically continuous innovations New variants and innovative
promotions (22 carat gold coin promotion Chance Hai) Strong brand promotion but relatively lower prices Winning combination. Mass appeal/Market presence across all segments ( 15% of soap market)
Weakness:-
Mainly positioned as beauty soap targeted towards women, lack unisex appeal Some variation like the sunscreen, international variant did not do well in themarket
Not much popular in rural areas
Opportunities:-
Soap industry is growing by 10% in India. Beauty segments compounded annual growth rate(CAGR) is very high. Liquid body wash is currently in growth stage- Lux should come out with more
variant in this segments. Large market share- Strong hold over the market
Threats:-
High internal competitions (Pears-beauty segments) New entrants (Vivel) Maturity stage-threats of slipping down to decline stage- if constant reinvention
is not carried out.
Internal Competitor:- Lifebuoy: 1895, 18% market shares
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External competitiors:-
Herbaria Merci
Clarin
Gender: female
Age:16-35
Income: middle income group (Rs.15-20)
Highest selling beauty soap in urban areas (rural area-lifebuoy)
Expensive-affordable
Target area: urban and sub-urban upper middle and middle class
people
Created good position: Buyers mind- Better product attributes, price and
quality.
Offering product in a different way
Offering: improved quality of the product- affordable price with high
branding- to position the product as a best quality beauty soap in buyersmind.
Market shares of Lux: 15%
Better positioning: market leader of beauty soap.
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Ayurvedic Variants
Lux Kids Special Soap
Target Rural Area
Target Male Customers
The beauty soap industry of India consists of a few producers in the industry.The Demand for this product is very much vulnerable in terms of pricing.Hindustan Unilever is providing LUX at a price which is affordable to most ofthe people in the country. Beauty soap is an uprising product in India as agreater portion of the population, both male and female, are now getting more
beauty conscious. As a multinational company Hindustan Unilever with heavypromotional activities, has been able to penetrate the market. With six differentfragrances, three different sizes, international standard and high quality design,as a product, LUX has been highly successful over the years. Its distribution
process is highly efficient. Its promotional activities, like the beauty contest has
been a milestone in attracting a huge number of customers. Overall with itsmarketing activities LUX has been a successful brand.
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beauty.html
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HUL-RU-Q3FY09-29-01-20091.pdf
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