Acknowledgement

First and foremost, we would like to thank ALMIGHTY Allah for His help. He granted us the ability to undertake this subject. It is by His Will that we have been able to complete our term report.

We are truly indebted to Miss Sameena Hassan for giving us this incredible opportunity to gain tremendous knowledge in the subject of marketing. She showed commendable gesture of believing in our potentials and guided us throughout the completion of this term report.

I am highly indebted to Unilever for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.

I would like to express my special gratitude and thanks to Mr. Samir Sultan for giving us such attention and time.

We thank and appreciate our colleagues who helped us in developing the project and people who have willingly helped us out with their abilities.

Executive Summary

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The following report gives an overview of the recently introduced Lux Body Wash in the market. Moreover, the report will briefly outline the marketing strategy used by Unilever. It will also include the target market and product price.

This report will also focus on the SWOT analysis, factors influencing buyer’s behavior and market segmentation and targeting.

ContentsCurrent Marketing Situation....................................................................................................................4

SWOT Analysis.........................................................................................................................................6

Objectives and Issues..............................................................................................................................7

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Marketing Strategy..................................................................................................................................7

Action Programs....................................................................................................................................17

Budgets..................................................................................................................................................19

Controls.................................................................................................................................................21

Current Marketing Situation

Lux, which holds a reputed place in the market for bar soaps, now plans to hit the market with liquid body wash .In Pakistan, the body wash market comprises of Johnson’s, Gillette, Adidas, Palmolive, pears etc. The use of body wash is not really common and therefore, the main goal is to convert people using bar soaps to body washes.

Market Description:

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We all want to be pampered, to look good and to feel great, to enjoy that moment when anything seems impossible and that is just what Lux offers you on a daily basis at a price that you can afford. Unilever Pakistan segments their market according to geographical areas. The population of the country is segmented into three parts which are urban, sub-urban and rural area consumers. Lux , for its body wash campaign targets consumers who fall under the urban and sub-urban areas and completely ignores the rural, as they don’t have much recognition and knowledge. Target consumers include the household, students and mainly women aged 18-30, women who are personal care conscious, interested in retaining soft and smooth skin and have high brand loyalty towards personal care products.

Product Review:

The Lux range of fragrant body washes are designed to leave your skin feeling refreshed and smelling delicious. Its main characteristics are:

It contains methadol giving a crystal opaque like look It contains pearlizing agent which gives it a more premium and flashy texture It has 5 times the amount of extract to give added vitamins and nutrition to skin It leaves you feeling squeaky clean It is economical in terms of its superior lather volume It has added silk protein extract which forms a creamy layer that retains skin moisture It has three variants:

i) Peach and Creamii) Strawberry and Creamiii) Magical Beauty

It comes in 2 types of packaging:i) Body Wash 220 ml for Rs.175ii) Loofah Pack (Loofah & 220 ml Body Wash) for Rs.195

Competitive Review:

Competition always exists in the market. Key competitors of Lux body wash include:

1) Gillette:

When it comes to feeling your best every day, it’s all about getting clean. Gillette’s full line of body wash for men gives you the power and performance you need to wash away oil, dirt, sweat and body odor, every time you step in the shower. They have six variants and all for men.

2) Johnsons :

This delightfully scented body wash does more than indulge skin with irresistibly soft lather. It's also shown to moisturize for 24 hours, leaving skin feeling irresistibly soft and smooth.

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3) Pears :

It is especially made to take care of sensitive and delicate skin, cleansing thoroughly yet gently rinsing clean. 100% soap free. It is hypoallergenic and contains mild cleansers.

4) Palmolive:

The Palmolive Naturals range of shower gels are enriched with the goodness of natural ingredients to help moisture and care for your skin in one easy step. All of them are dermatologicaly tested.

5) Bar soaps :

90% of the cleansing market is based on bar soaps. Soap still has a loyal following, particularly among women and older people. Some bar soaps have exfoliating properties that are generally not found in body washes. A 10-ounce bottle of body wash will cost you approximately $0.17 per wash, while a single bar of soap will cost you just $0.012 per wash.

Channels and Logistics Review:

Since Lux Body wash is a premium product, its distribution and channel strategy differs from the norm. It will be launched only in the top 23 towns of Pakistan which include Karachi, Lahore, Islamabad, Faislabad, Gujranwala, Sialkot, Multan, Hyderabad, Bahawalpur etc. It will be not made available in rural areas as they have little or no recognition. Modern trade is the preferred channel and all major supermarkets/superstores nationally will be carrying the product.

SWOT Analysis

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Objectives and Issues

Objectives:

Lux Body Wash has the set the following objectives for entering the market:

-To increase market share.-To increase earnings.-Conversion from the usage of bar soaps to liquids through Lux Body Wash.-Make Lux Body Wash the most preferred brand among body washes.

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STRENGTHS>Strong market research.

>Perceived to have high value for money (strong brand

promotion but relatively lower price which is a winning

combination in the popular segment)

>Strong sales and distribution method

>Strong brand image.>Positioning focuses on the attractive beauty segment>Katrina Kaif- strong asset.

WEAKNESSES>Not much popular in the rural

areas>Don’t have line for shampoos

or body washes>Mainly positioned towards

women( lacks uni-sex appeal)

OPPORTUNITIES>Untapped Market: The body

wash market is unnoticed in the rural areas, so our opportunity

would be to get people into using body washes.

THREATS>Resistance of the format

>More competition (Basically imports)

Issues:

The major issue that the product faces is that the usage of body washes is not very common here. Out of all the skin cleansing products, the usage of body washes is just 1%. Thus, in order to capture the market Unilever uses effective techniques and marketing strategies to promote the product and build usage of liquids and body washes among consumers.

Marketing Strategy

Lux Body Wash mainly targets urban women aged 18 to 30 who are very conscious about their personal care and want to retain soft and smooth skin. They have a high brand loyalty towards personal care products. For this, they hit the markets of tier 1 cities i.e. Karachi, Lahore and Islamabad. On the other hand they also target women dwelling in sub-urban cities like Bhawalpur, Multan and Hyderabad who have the buying power but little to no recognition or exposure of such products.

Unilever doesn’t use the traditional 4p’s approach for marketing. Their marketing strategy is based on the MDM Wheel (Market Development Model) which is a finer version of the traditional approach. The model comprises of 9 key elements which are:

1. Product is Hero2. Right Size/ Price3. Education Campaign4. Product Experience5. Product Availability6. Product Visibility7. Alligned Promo Strategy8. Scale9. Customer Buy-in

Market Development Model

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Product is Hero:

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• Cross promotion with bars • Out-of-category display • In-store merchandizing

Conversion from soap bars to

liquids through Lux Body Wash

Premium and Superior bathing experience vs. bar to add to Customer

A&P Investment: Rs. 140 million

Yr 1 50%, Yr 2 70%

TV, Radio, Outdoors, DigitalMassive sampling Program

- Available in supermarkets/ super stores nationally

- - 23 urban towns

- -7500 stores- -Avoid in-

store

Product Sampling:- Valet Parking- -vending

machine• Direct

Experience- - Lux Luxury

Education through• In-store BAs• TV content

Integration -Entice-Inspire - Educate

- Lux Body Wash 220 ml @ Rs. 175

- -Loofah pack 220 ml @ Rs. 195, 120 ml @ Rs. 99

-Superior formulation than bar soaps.-Methadol and Pearlizing agents.-silk protein extracts to retain skin moisture.-3 variants.-Attractive packaging

Lux body wash offers a superior formulation than bar soaps in terms of lather and skin feel. It contains methadol and pearlizing agents to give it a crystal opaque look and a flashy texture. It also contains extracts that give added vitamins and nutrition to your skin and additional silk protein extracts that forms a creamy layer which helps retain skin moisture. The product has three variants:

-Strawberry and Cream

-Magical Beauty

-Peach and Cream

Attractive packaging is another element that adds on to the product.

Right Size/Price:

The pricing strategy of Lux Body Wash is as follows:

Education Campaign

The main campaign idea of Lux Body Wash is, “Dress your skin in liquid silk”. Lux introduces a luxurious bathing experience with Lux Body Wash which gives a new kind of softness to your skin –just like liquid silk.

For any product to be successful, it is necessary to educate the consumers about it. Unilever used the following media to educate their target consumers about Lux Body Wash.

In Store Brand Ambassadors:

Unilever Pakistan used in store brand ambassadors who were good looking girls dressed in purple silk gowns to educate people about the product efficacy and loofah usage and hand over product samples to them.

They also carried iPad to show a demo on how the lather is created using loofah with Lux Body Wash.

Content Integration:

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Size PriceBody Wash (All 3 variants)

220 ml Rs. 175

Loofah Pack 220 ml Rs. 195120 ml Rs. 99

They used communication flow through TV to educate people about the product. This communication flow was broken down into three phase:

Entice:In this phase of the communication flow an 8 second teaser was broadcasted on TV and an audio version of it was played on Radio. At this point only the brand name was revealed. However, the product was kept under the mask to leave people curious about what was coming up.

Inspire:The second phase of the communication flow revealed the launch of Lux Body Wash and broadcasted a 30 second thematic on different television and radio channels all over Pakistan. Apart from this, the following strategies were also used in this phase:

-Channel Linking:Visual cues can make a marvelous impact on what the audience can retain. Hence, they planned to own TV as a platform that can visually trigger the audience through channel linking where a band of 5 celebrities endorsed the product and talked about the benefits and luxury of Lux liquids. The band included Ayesha Omar, Kiran Khan, Javeria Abbasi, Nazia Malik and Eshita.

-On-ground Events:Testimonials and comments about Lux Body Wash were taken by people, celebrities and ambassadors to amplify the activity across channels.

-Evolution Game:They came up with a mix and match game of products that have evolved over time just like bar soaps have evolved into body washes. The winners got free spa vouchers. However, this was a very successful medium.

-Online Advertising:As majority of the people now spend more time on internet than on TV, Unilever used online advertisement on various famous websites like Facebook, Msn, Tribune, Fashion Central etc.

Educate:In this phase of communication flow a 15 second tactical campaign on loofah usage with Lux Body Wash was broadcasted on various TV channels to educate the target audience.

Product Experience:

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Product sampling and direct product experience play a vital role in make a product a successful one. Unilever Pakistan used the following techniques to capture the interests of their target consumers:

DIRECT PRODUCT EXPERIENCE:

-Lux Luxury Lounge:With the activation of Lux Luxury Lounge, they tried to make their consumers feel special by providing them with a sensorial experience of liquid luxury and that of being pampered. A well Decorated set up was taken to malls and supermarkets like Metro and Macro where women were given manicure and pedicure and had the product tried on.

-Salons:Experiential zones were created in some salons where Bas gave product experience and educational sampling to all visiting clients.

-Floats:Fancy and well equipped vans were parked in universities, girl colleges, apartments and clubs where women were given luxurious experience of Lux Liquids.

PRODUCT SAMPLING:

-Sampling Units:The sampling units included 30ml bottles of Lux Peach & Cream in beautiful satin draw-string pouches. 50,000 sampling units were given away.

-SMS Based Sampling Through Vending Machines:Unmanned vending machines were placed in places like cinemas, gaming areas, restaurants, cafes and female salons.

-Valet Services:Lux sponsored Valet parking services were provided at major restaurants, cinemas and shopping markets. Well suited valet boys parked the cars for the people coming in and left behind a sample Lux Body Wash.

Channel Experiential Sampling

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Malls √ √

Universities/Colleges √ √

Apartments √ √

Clubs √ √

Salons √ √

Recreational Areas √

Sunday Bazaar √

Markets √

Product Availability:

Since Lux Body Wash is a premium product, its distribution and channel strategy is different from the norm. It is launched in the top 23 towns of Pakistan only and not in the rural areas. Unilever prefers modern trade and monitors its product availability in smooth manner to avoid shortages. Lux Body Washes are available in all supermarkets and superstores nationally. There are now 7500 stores in Pakistan carrying the product.

Product Visibility:

“To succeed in business it is necessary to make others see things as you want them to see.”

-John H. Patterson

Product visibility is the principle idea behind the success of any product. Marketers strive hard to make their product visible to consumers in the best possible way. Unilever uses cross category display, primary and secondary shelf display and attractive promotional setups in all major super markets like Hyper star, Metro and Macro.

Aligned Promotional Strategy:

Unilever used a large, sustained and consistent level of investment for the promotion of Lux Body Wash. TV, Radio, Outdoors and Digital were the main media used to influence the target consumers.

TV:Visual cues can make a marvelous impact on what the audience can retain. Hence Unilever decided to own TV as a platform that can trigger the audience by associating with various morning shows, TV Serials, magazine shows and talk shows and sponsoring them.

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During the launch they decided to have a ‘Big Bang Entry’ and have more than 16 hours of brand exposure for 3 days on 15 channels where the first and last promotional ad during every interval would be of Lux Body Wash.

CHANNEL STRATEGYEntertainment – 63% Geo Entertainment, Hum Tv, ARY

Digital, A plusMusic & Movies – 10% HBO, PlayNews – 27% Geo News, Dawn News, Express,

Samaa, ARY News

After the 3 days of big bang entry they decided to continue with their normal advertising taking the sponsorship of high affinitive programs

They also used channel linking for the product promotion where celebrity endorsers talked about the product’s benefits and their sensuous experience of using Lux Body Wash.

Radio:Through research they projected the peak times at which housewives and female students listened to radio. The commercial signature tune was played as the background score of every transmission being aired at those times. After the launch they created a slot named ‘Soft Melodies with Lux Liquids’ where customized playlists were played across the channels at the same time.

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Peak Listening Hours

Major radio channels selected were: FM 91, FM 107, FM 99 and FM 89.

Outdoors:Outdoors is another media to grab the attention of the target consumers. Unilever Pakistan used heavy outdoor promotions like attractive and eye catching hoardings with silky flap cutouts and backlit bottles, gantry signs, building wraps, bridge panels, wall panels, pylon signs, pole signs and streamers to influence the consumers.

Outdoor Summary

City Outdoor Type NumberLahore Spectaculars 7

Gantry Signs 2Building Wraps 1

Islamabad Bridge Panels/ Gantry Signs 2Pylon Signs 10

Faisalabad Building Wrap 1Karachi Spectaculars 5

Gantry Signs 2Pole Signs 60Streamers 900

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Print:Loofah cutouts as inserts, magazine covers and full page ads were used printed in leading magazines and newspapers like:

-Dawn Images -News Instep -Fashion Collection -She Magazine

-Jang Sunday Magazine -GT -Diva -Women’s Own

-Akhbar e Jahan -Readers Digest -Visage

Digital:To promote their product in the best possible way, Unilever tried to cover all possible touch points to reach their target females. They used online advertisment websites like Facebook, Msn, Fashion Central and Tribune. A facebook fan page was also created which introduced different apps and an Evolution game to attract the target audience.

Scale:

Unilever has invested a substantial amount of around Rs. 140 millions for the advertisement and promotion of Lux Body Wash which has contributed a great deal towards the success of the product and increasing its sales. Projected contribution was 50% in year 1 and 70% in year 2. The sales had risen incredibly and reached their peak within the first 10 weeks of launch.

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Customer Buy-in:

Lux Body Wash provides a premium and superior bathing experience as compared to bar soaps, this quality adds on to customers’ assortment of the product. The liquid silk luxury that the product provides definitely gets the target consumers to buy it.

Unilever Pakistan used experiential and sampling phases in malls, colleges and supermarkets which encouraged customers to buy Lux Body Wash there and then from the counters. Their immediate purchase was incentivized with a free loofah. These phases included:

-Lux Luxury Lounge -Floats -Product Demos

-On shelf fragrance testers -Valet Services -Vending Machine Sampling

Gaining Long-term Consistency:

Unilever Pakistan strives hard to gain long-term consistency in all their efforts to make their marketing strategy a success. They ensure that the quality of the product is up to the mark and the raw materials used are available in the right quantity and at the right time. It also takes into account that the prices of the product offered are in accordance with the customers’ perceived value. Apart from this the company has a well established distribution system that makes sure that the product is readily available in the market and there are no on-shelf shortages.

Marketing Research:

Effective marketing research is the key to the success of any company; it helps to bring innovation and development. Unilever considers innovation as the lifeblood of its business, for this they have a Research and Development Department which is treated as an asset. The R&D Department strives to build capacity in the market and gain greater customer value and understanding.

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Action Programs

The action program of Lux Body Wash is divided into three main parts:

1. Entice:A teaser of the product will be launched

2. Inspire:Lux thematic will be broadcasted. All female centric time slots like morning, matinee, early prime time, prime time and late prime time will be covered.

3. Educate:In this part of the action program a 15 second trailer will be broadcasted educating the users by showing them the step by step usage.

Key Timelines:

• Package Materia/ Sleeves Arrival: Week 7 (Feb 16)

• Product/Raw Material Arrival: Week 8 (Feb 22)

• Production: Week 9 (Feb 26)

• Primaries: Week 10 ( March 07)

• Theatrization: Week 13 (March 25)

• Entice ATL Break: Week 13 (March 25)

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Campaign Calendar:

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DNOSAJJMAMFJ

Entice – Escape Away Teaser – 3rd April

Inspire – Reveal Lux Liquid Silk Lux Thematic – 7th April

Educate – Step by step usage 15 Sec Educational

Budgets

Gross Margin Summary

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Pack Size x Variants

Price Volumes 2011 Cont% GM%

LUX LIQUIDS

174 100% 45.8%

BOTTLES : 133 77% 45.8%

220ml x 3 variants

175 116 87% 47.1%

120ml x 1 variant

99 17 13% 37.1%

POUCHES: 41 23% 45.9%

180 Ml x 1 Variant

140 9 22% 43.6%

180 Ml x 2 Variants

125 32 78% 46.6%

Investment Mix

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TotalTotal SpendSpend

140 Mn140 Mn

ATL

96 Million

69%

BTL

16 million

11%

Trade/In store: 17 Million - 12%

Packmat: 5mn – 4 %

Sample: 6mn- 4%

TV: 71 Million

Outdoor: 15 Million

Content /PR: 4 Million

Print: 2 Million

Radio: 2 Million

Digital: 2 Million

IMTs/LMTs

Salons

Malls

Schools/Colleges

Controls

For every medium Unilever has different controls and tools.

1) Media:When it comes to TV and other types of media Unilever has intermediaries (3rd parties). These 3rd party agencies track down TVC across channels. These agencies provide Unilever with duration, spots, GRPs, timings and channel mix.

2) Outdoor:Likewise for outdoors (billboards) Unilever has 3rd parties who track the daily wear and tear of the sites.

3) Stores:As for trade, Unilever officials often step out and do market visits themselves.

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