19445408 integrated-marketing-communication-of-lux

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    PROJECT REPORT

    ON

    INTEGRATED MARKETING COMMUNICTION OF LUX SOAP

    BY HINDUSTAN UNLEVER LIMITED

    Submitted by

    Lalit Kothari 17028

    Ravi Kumar 17041

    Soniya Yadav 17048

    Faculty

    Prof. Dr. Madhavi Pandya

    Siva Sivani Institute of Management

    Kompally, Secunderabad

    (2008-2010)

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    ABSTRACT

    Hindustan Unilever Ltd. is a well-known and largest FMCG company in India. HUL has always

    revamped its products to meet the changing needs of the consumer without compromising on the

    quality. This report deals with one of its premier brands "LUX". HUL leads the market in the

    toilet soap category with 54.3% market share. Lux has inched up to be on par with Lifebuoy in

    HUL's soaps portfolio. The Lux brand now has an almost equal market share as Hindustan

    Lever's largest selling soap brand - Lifebuoy. This report gives an overview of the history of the

    company and the brand "Lux", the various strategies adopted to survive in the market for over 75

    years and the various competing brands. The promotional activities adopted, the brand's strengths

    and weaknesses, threats faced are also analysed. The FMCG category is always a battleground

    for all the competing firms and the bathing soap category is no different. With more firms

    entering the market, maintaining the customer base is not very easy. Within six months, ITC's

    soap products have been able to capture 1.75% of the market share.

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    Table of Contents

    ABSTRACT ........................................................................................................................... 2

    TABLE OF CONTENTS ........................................................................................................ 3

    EXECUTIVE SUMMARY ..................................................................................................... 4

    INDUSTRY ANALYSIS ........................................................................................................ 5

    MAJOR PLAYERS ................................................................................................................ 5

    EXTERNAL COMPETITORS....................................................................................................8

    HINDUSTAN UNILEVER LIMITED (HUL) ...........................................................................

    Company profile ................................................................................................................... 10

    Mission ................................................................................................................................. 11

    Principles of the Quality Policy ............................................................................................ 12

    Present stature ....................................................................................................................... 12

    Divisions ............................................................................................................................... 13

    Hindustan Lever network ...................................................................................................... 14

    Exports ................................................................................................................................. 15

    Water ..................................................................................................................................... 15

    Corporate Responsibility ....................................................................................................... 16

    PRODUCT PROFILE ........................................................................................................... 17

    PRODUCT CATEGORY, MARKET SEGMENTATION, TARGET MARKETING AND

    POSITIONING..18

    TACTICAL MARKETING TOOLS

    Product ................................................................................................................................. 20

    Promotion ............................................................................................................................. 20

    Price............21 Place ..................................................................................................................................... 21

    INTEGRATED MARKETING COMMUNICATION

    PROMOTION.23

    PUBLIC RELATIONS24

    POINT OF PURCHASES.26

    ADVERTISEMENTS.27

    PUBLIC RELATIONS40

    DISTRIBUTION.40

    BIBLOGRAPHY.42

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    Executive Summary

    Unilever is a multinational consumer product manufacturing giant operating in over hundred

    countries all around the globe. Unilever Bangladesh is the Bangladesh chapter of Unilever,

    where the company holds 60.75% share whereas the Government of Peoples Republic of

    Bangladesh holds 39.25% share. Unilevers one of the most popular brand is LUX. They

    segments LUX.s market according to geographical locations. It further differentiates these

    segments into Socio Economic Cluster (SEC) which takes into account the criteria of education

    and profession which ultimately measures the financial ability of consumers. The cluster is

    divided into five parts starting from A to E. Unilever targets the urban and sub urban upper

    middle class and middle class segment of the population, who falls under A to C of SEC.

    Tactical marketing tools, 4Ps, are extensively used by the company to market LUX. Though

    LUX is produced in Bangladesh, Unilever Bangladesh maintains the same standard all around

    the globe. The product is available in six different fragrances under three different sizes. Since

    the demand for beauty soap market is to a great extent oligopolistic, variations in price lead to

    price war which can eventually break down the companys market share. Thus Unilever cannot

    provide a better price than its competitors. But the price is affordable by most of the people.

    Unilever Bangladesh has outsourced its distribution channels to third party distributors which

    allow them to distribute LUX in massive bulks amounting to around ten million pieces. It

    undertakes the largest promotional activities in the beauty soap industry.

    The beauty soap industry has a few major producers of which Unilever holds market share of

    slightly less than 50%. Other competing brands like Tibbet, Aromatic and Keya have started to

    have a strong consumer base, but LUX.s product features distribution and promotional activities

    have created high brand loyalty for which it is still the market leader. Unilever, with the aid of its

    heavy promotional activities, has been able to penetrate the market. But the other producers in

    the industry are posing a threat towards Unilevers market share as they have moved towards the

    rural masses of the population. Therefore, Unilever Bangladesh should undertake further steps

    such as moving towards the rural and/or poorer segment; attract children (by making a special

    product for kids) and other innovative promotional activities to retain its command in the

    industry.

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    Industry analysis

    The toilet soaps market is estimated at 530,000 tpa including small imports. The market is

    littered over with several, leading national and global brands and a large number of small brands,

    which have limited markets. The popular and premium brands include Lifebuoy, Lux, Cinthol,

    Liril, Rexona, and Nirma.

    Toilet soaps, despite their divergent brands, are not well differentiated by the consumers. It is,

    therefore, not clear if it is the brand loyalty or experimentation lured by high volume media

    campaign, which sustain them. A consequence is that the market is fragmented. It is obvious that

    this must lead to a highly competitive market. Toilet soap, once only an urban phenomenon, has

    now penetrated practically all areas including remote rural areas. The incremental demand flows

    from population increase and rise in usage norm impacted as it is by a greater concern for

    hygiene. Increased sales revenues would also expand from up gradation of quality or per unit

    value.

    As the market is constituted now, it can be divided into four price segments: premium, popular,

    discount and economy soaps. Premium soaps are estimated to have a market volume of about

    80,000 tonnes. This translates into a share of about 14 to 15%.

    Soaps form the largest pie of the FMCG Market with bathing & toilet soaps accounting for

    around 30% of the soap market, by value. Currently, the soap industry is divided into three

    segments namely Premium, Popular and Economy/ Sub popular.

    To fight competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer Products

    Ltd (GCPL) and Wipro Consumer Care & Lighting are now drawing up fresh game plans. And

    the accent is clearly on innovation to gain mind share as well as market share in this

    overcrowded category.

    Major Players

    Hindustan Unilever Ltd.

    With over seven brands LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE and

    PEARS has 54.3% share of the overall soap market. HUL is India's largest Fast Moving

    Consumer Goods Company; its journey began 75 years ago, in 1933, when the company was

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    first incorporated. The company stirring the lives of two out of three Indians with over 20

    distinct