Marketing Project Report on Lux Soap

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Marketing Project Report on Lux Soap

• By
• Amit Kumar Sinha
• PGDMRM-002
• IPE, Hyderabad

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Contents

• Company Profile HUL
• Distibution Channel - HUL
• Product Mix HUL
• Overview Lux Soap
• Marketing Mix
• SWOT Analysis
• Competitor Analysis
• Market Segmentation
• Recommendation
• Reference

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Company Profile - HUL
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Company Profile - HUL

• 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 HUL Product mix

• The width of the product mix refers to the
  number of different product line the company
  carries
• E.g
• Personal wash
• Laundry
• Skin care
• Oral care
• Deodorants
• Colour cosmetics
• Ayurvedic personal and health care

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• Shampoo
• Tea
• Coffee
• Foods
• Ice cream
• Width 12

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The lenght of the HUL Product mix

• The Lenght of the product mix refers to the
  total number of items in the product mix.
• E.g
• Personal wash Lux, Lifebuoy, Liril, Hamam,
  Breeze, Dove, Pears, Rexona
• Laundry Surf excel, Rin, Wheel
• Skin 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
• Foods Kissan, Annapurna, Knorr
• Ice cream Kwality walls
• Width 30

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The Depth of the HUL Product mix

• The depth of the product mix refers to the
  number of variants of each product offered in the
  line
• E.g If close up toothpaste comes in three
  formulation and in three sizes, close up has a
  depth of 9 (33)

The Consistency of the HUL Product mix

• The consistency of the product mix refers to how
  closely related the various product lines are in
  the use, production requirement, 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
• 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
• Non durable good
• Lux and other soaps fall into the category 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
Lux trade character or logo is present
prominently in the packageFemale
modelDisplayed graphically Key ingredients
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Packaging
Different colors Different variants( Saffron
Saffron variants Pink Rose extracts etc.
)Package size 100gm, 120gm, 150 gmLaunched
Mini Lux 45gm - Rs 5
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Price

• Competitive prices Neither high nor low

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Place

• HUL distribution network key strength (Which
  helps reach out its product across the length and
  width of the vast country)

• 2000 Suppliers Associates

• 7000 Stockists

• Direct coverage in over 1 million retail outlets

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Network

• Factory Company warehouses Distributor
  Market
• Factory Wholesaler Big retailers (Bulk
  orders) 30 Sales

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Promotion

• Active since 1929

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• Featured all top actress of their times.

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• Idea if it is good enough for a film star, it is
  good
• for me.

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First Male Brand Ambassador
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South India
1970 JayalalithaShriya Sharan
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Sales Promotion

• Lux gold star offer 22 Carat Gold coin in the
  Soap First 10 caller (Extra 30 gm gold)
• Lux star bano, Aish karo contest A special
  promotional pack of lux soap Scratch card -50
  lucky winner got the chance to meet Aishwarya rai.

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SWOT Analysis
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Strengths

• Strong market research (Door to door sampling
  once in a year Rural and Urban area.)
• 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

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• 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)

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Weakness

• Mainly positioned as beauty soap targeted towards
  women, lack unisex appeal
• Some variation like the sunscreen, international
  variant did not do well in the market
• Not much popular in rural areas

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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 variants in this
  segment
• Large market share Strong hold over the market

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Threats

• High internal competition (Pears Beauty
  segment)
• New entrants (Vivel)
• Maturity stage threat of slipping down to
  decline stage if constant reinvention is not
  carried out

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Competitor Analysis
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Internal Competitor

• Lifebuoy 1895, 18 Market shares

External Competitor

• Godrej consumers products limited (GCPL)
• 2nd Largest soap maker after HUL
• 9.2 Market share
• Brands Cinthol, Fairglow, Nikhar

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• Wipro
• Brand Santoor (No 1 in AP) and Chandrika
• ITC
• 1.75 growth in initial five months
• Brand Superia, Fiama di wills and Vivel
• Sold in six states

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Market segmentation
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Market segmentation of Lux

• Gender Female
• Age 16-35
• Income Middle income group (Rs. 15 to 20)
• Highest selling beauty soap in urban area (Rural
  area Lifebuoy)
• Expensive Affordable,
• Target Area Urban and Sub urban Upper middle
  and middle class people

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Product Positioning of Lux

• 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
  buyers mind.
• Market share of HUL 54.3
• Market share of LUX 15
• Better Positioning Market leader of beauty soap

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Recommendation
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Recommendation

• Ayurvedic variant
• Lux kids special soap
• Target rural area
• Target male customers

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References
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References

• www.capitaline.com
• www.hul.com
• www.google.com
• www.wikipedia.com
• www.mbaparadise.com
• www.fmcg.com

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Questions???