Assignment PoM MysoreSandal Lux1

Market Analysis of Market Analysis of Mysore Sandal And LUXMysore Sandal And LUX

Name SMS ID

Rakesh RamachandranRakesh Ramachandran 106106

Mohan Reddy JMohan Reddy J 105916

Vinay KashyapVinay Kashyap 106440

Sona JoySona Joy 105694

Purushotham NaiduPurushotham Naidu 106499

Praveen SinghPraveen Singh 105742

Batch 17

Faculty Professor Pingali Venugopal

Group 18

Mysore Sandal Soap (KSDL Product)Mysore Sandal Soap (KSDL Product)

KSDL – Company OverviewKSDL – Company Overview Mysore Sandal Soap is a brand of soap manufactured by the Karnataka Soaps and Detergents Mysore Sandal Soap is a brand of soap manufactured by the Karnataka Soaps and Detergents

Limited (KSDL), a company owned by the Government of Karnataka in India. Limited (KSDL), a company owned by the Government of Karnataka in India.

The Government Soap Factory was established by the Maharaja of Mysore his Highness The Government Soap Factory was established by the Maharaja of Mysore his Highness Nalwadi Krishnaraja Wodeyar and Diwan Sir.M.Visvesvaraya during the year 1916. Nalwadi Krishnaraja Wodeyar and Diwan Sir.M.Visvesvaraya during the year 1916.

In 1980, Authorities of Mysore joint the Sandal oil factories at Metropolis and Shimoga and In 1980, Authorities of Mysore joint the Sandal oil factories at Metropolis and Shimoga and Regime Max Mill at City and definite State Soaps & Detergents Qualified KSDL (Karnataka Regime Max Mill at City and definite State Soaps & Detergents Qualified KSDL (Karnataka Soaps & Detergents Limited), which has been merged as a Consort under Troupe's Act 1956. Soaps & Detergents Limited), which has been merged as a Consort under Troupe's Act 1956.

The KSDL's soap factory in Bangalore that manufactures the Mysore Sandal Soap is one of the The KSDL's soap factory in Bangalore that manufactures the Mysore Sandal Soap is one of the largest of its kind in India having an installed capacity to produce 26,000 tonnes of soap per largest of its kind in India having an installed capacity to produce 26,000 tonnes of soap per annum annum

As the name suggest, one of the main raw materials required for production is Sandalwood. As the name suggest, one of the main raw materials required for production is Sandalwood.

Mysore Sandal soap held a 6500 tonnes share among the 450 thousand tonnes of soap Mysore Sandal soap held a 6500 tonnes share among the 450 thousand tonnes of soap produced and marketed annually in India.produced and marketed annually in India.

KSDL had sales of Rs 1.15 billion (about $ 28.75 million) in the recent past with the Mysore KSDL had sales of Rs 1.15 billion (about $ 28.75 million) in the recent past with the Mysore Sandal Soap having an average monthly sale of about Rs. 75 million ($ 1.87 million). Sandal Soap having an average monthly sale of about Rs. 75 million ($ 1.87 million).

About 85% of the sales of this soap are from the South Indian states of Karnataka, Andhra About 85% of the sales of this soap are from the South Indian states of Karnataka, Andhra Pradesh and Tamil Nadu. Pradesh and Tamil Nadu.

KSDL's products are regularly exported to UAE, Bahrain, USA, Arabian Arabia, Kuwait, KSDL's products are regularly exported to UAE, Bahrain, USA, Arabian Arabia, Kuwait, Southeastern Easternmost Eastern countries etc. Southeastern Easternmost Eastern countries etc.

The company is diversified and manufactures incense sticks, talcum powder and detergents; The company is diversified and manufactures incense sticks, talcum powder and detergents; apart from soaps. apart from soaps.

Head office : BangaloreHead office : Bangalore

KSDL – Company OverviewKSDL – Company Overview

Mysore Sandal Soap has good presence in South Indian states like Karnataka, Mysore Sandal Soap has good presence in South Indian states like Karnataka, Andhra Pradesh & Tamil Nadu. Andhra Pradesh & Tamil Nadu.

Mysore Sandal Soap have different varieties to cater to different customer Mysore Sandal Soap have different varieties to cater to different customer requirementsrequirements

Mysore Sandal Gold & Classic Soap Mysore Sandal Gold & Classic Soap Mysore Sandal Baby Soap Mysore Sandal Baby Soap Carbolic Soap, Wave Turmeric Soap – Ayurvedic BrandsCarbolic Soap, Wave Turmeric Soap – Ayurvedic Brands Mysore Rose Soap & Mysore Herbal Care SoapMysore Rose Soap & Mysore Herbal Care Soap

Mysore Sandal Soap not popular in North Indian StatesMysore Sandal Soap not popular in North Indian States

Mysore Sandal Soap is facing huge competition from other national and Mysore Sandal Soap is facing huge competition from other national and International brands like Lux, Dove, Johnson & Johnson etc which easily appeal to International brands like Lux, Dove, Johnson & Johnson etc which easily appeal to current youth.current youth.

The Soap has not been marketed in a high profile manner and only during the year The Soap has not been marketed in a high profile manner and only during the year 2006-07, M. S. Dhoni, the Indian Cricketer was selected as the first brand 2006-07, M. S. Dhoni, the Indian Cricketer was selected as the first brand ambassador of the Mysore Sandal soap. ambassador of the Mysore Sandal soap.

Situation AnalysisSituation Analysis

Mugdha Godse (model/actress) was selected in 2009 to promote Mysore Sandal Gold. Mugdha Godse (model/actress) was selected in 2009 to promote Mysore Sandal Gold.

The ads were aired for a brief period of time and did not create any impact.The ads were aired for a brief period of time and did not create any impact.

Other marketing strategies being employed to market this soap include a scheme where the Other marketing strategies being employed to market this soap include a scheme where the distributors who meet the targeted sales could enter a lucky draw where they could win distributors who meet the targeted sales could enter a lucky draw where they could win silver or gold coins. silver or gold coins.

All efforts to market this product has not paid rich dividends and the market share of Mysore All efforts to market this product has not paid rich dividends and the market share of Mysore Sandal Soap is gradually diminishing. Sandal Soap is gradually diminishing.


SWOT AnalysisSWOT AnalysisParameterParameter Environmental VariableEnvironmental Variable O/TO/T ActionAction S/WS/W

Availability of Availability of ProductProduct

Non-Availability of Raw MaterialsNon-Availability of Raw Materials Shortage of Sandalwood which Shortage of Sandalwood which

is the key for production. is the key for production.

TT Increase Availability of Raw materials Increase Availability of Raw materials by encouraging plantation of by encouraging plantation of Sandalwood trees.Sandalwood trees.

Procure sandalwood by bidding in the Procure sandalwood by bidding in the open marketopen market

Consider importing the Sandalwood Consider importing the Sandalwood from other countries from other countries

SS

Low Production CapacityLow Production Capacity TT Increase the number of production Increase the number of production units across the state.units across the state.

Increase Production Capacity by use of Increase Production Capacity by use of TechnologyTechnology

SS

Low penetration in northern partsLow penetration in northern partsof Indiaof India

OO Market Product in less penetrated Market Product in less penetrated areas and increase the visibilityareas and increase the visibility

Increase Distribution Network in such Increase Distribution Network in such areasareas

SS

FunctionalityFunctionality Scarcity of water for good bathing Scarcity of water for good bathing experienceexperience

TT Increase availability of waterIncrease availability of water WW

Ability to function in hard water andAbility to function in hard water andsoft watersoft water

OO Improve the ingredients so that the Improve the ingredients so that the soap functions in both forms of water soap functions in both forms of water

SS

Not suitable for daily use under Not suitable for daily use under different weather conditions. different weather conditions.

TT Improve the ingredients so that the Improve the ingredients so that the soap can be used during all weathers.soap can be used during all weathers.

Manufacture different varieties for Manufacture different varieties for different weather conditions. different weather conditions.

SS

WW

O/T – Opportunity/Threat ; S/W – Strength/ WeaknessO/T – Opportunity/Threat ; S/W – Strength/ Weakness


Utility Of ProductUtility Of Product Availability of other foreign brands Availability of other foreign brands (like Lux, Cinthol etc) which easily (like Lux, Cinthol etc) which easily appeal to current youth. appeal to current youth.

TT Reduce the availability of foreign Reduce the availability of foreign brands in the marketbrands in the market

Rebrand the product and market it to Rebrand the product and market it to increase the visibility of the product to increase the visibility of the product to the current youth. the current youth.

WW

SS

Availability of substitute productsAvailability of substitute productssuch as liquid soapssuch as liquid soaps

TT Reduce Availability of Liquid soapsReduce Availability of Liquid soaps WW

Availability of other local and Availability of other local and cheaper soapscheaper soaps

TT Reduce availability of other cheaper Reduce availability of other cheaper soaps soaps

WW

DemandDemand South India - Low Income and South India - Low Income and Middle Middle

Income group familiesIncome group families

SS Product accepted as it a reputed brand Product accepted as it a reputed brand from Govt of Karnataka. from Govt of Karnataka.

Trusted BrandTrusted Brand

SS

Target huge youth and baby Target huge youth and baby segment in Indiasegment in India

OO Company can provide the soap for Company can provide the soap for Youth and Babies at a lesser cost due Youth and Babies at a lesser cost due to local production advantage. to local production advantage.

SS

Negative PropagandaNegative Propaganda TT Address the negative propaganda Address the negative propaganda through campaigns. through campaigns.

WW



Acceptance Of ProductAcceptance Of Product Health Conscious Families Health Conscious Families OO Address the health consciousness byAddress the health consciousness by emphasizing on “natural” productemphasizing on “natural” product Highlight the good effects of Highlight the good effects of

Sandalwood on skin through Sandalwood on skin through campaignscampaigns

SS

Style consciousness among youthStyle consciousness among youth

OO Market the product through ad’s Market the product through ad’s

endorsed by Style icons of the youth. endorsed by Style icons of the youth. SS

Swadeshi product, has a good Swadeshi product, has a good heritage backgroundheritage background

OO Increase awareness in people about Increase awareness in people about the product and its history the product and its history

WW

Low Income Group FamiliesLow Income Group Families OO Use the low cost advantage to market Use the low cost advantage to market it to lower income group families who it to lower income group families who cannot afford other brands. cannot afford other brands.

Reach out to lower income group Reach out to lower income group through ads on regional channels and through ads on regional channels and use local stars. use local stars.

SS

SS


Current PositioningCurrent Positioning

Product Universe Attribute Competition Effort

Mysore Sandal (Normal) All EmotionalHealth

Low Low

Mysore Sandal Classic MIG, HIG Beauty Consciousness High High

Mysore Sandal Gold HIG StatusBeauty Consciousness

High High

Mysore Sandal Baby Soap

MIG Health High High

Marketing Effort : (Currently What marketing is trying to achieve)

Possible Solution & SuggestionsPossible Solution & Suggestions Mysore Sandal Soap is manufactured using the Sandalwood Oil extracts. The Mysore Sandal Soap is manufactured using the Sandalwood Oil extracts. The

product should be marketed highlighting the benefits of using the product made product should be marketed highlighting the benefits of using the product made more from natural sources. This will target lot of beauty conscious people. more from natural sources. This will target lot of beauty conscious people.

Increase the risk of using other products available in the market as most of them are Increase the risk of using other products available in the market as most of them are not from similar natural sources.not from similar natural sources.

Since Mysore sandal has a very strong back ground and history behind it, It should Since Mysore sandal has a very strong back ground and history behind it, It should

cash in on these attributes to bring in a good awareness of the product legacy. This cash in on these attributes to bring in a good awareness of the product legacy. This can target middle age and above people.can target middle age and above people.

Presentation of the product needs to be enhanced and has to be made more Presentation of the product needs to be enhanced and has to be made more

attractive with better cover designs and colors. attractive with better cover designs and colors.

Improve the distribution network and retail network to other parts of India. Start Improve the distribution network and retail network to other parts of India. Start with major cities in North and gradually penetrate to other two tier cities. with major cities in North and gradually penetrate to other two tier cities.

Possible Solution & SuggestionsPossible Solution & Suggestions Invest more in creating different sets of advertisement through reputed agency. Invest more in creating different sets of advertisement through reputed agency.

Reach out to the masses through advertisements. Hire one of the style icons and Reach out to the masses through advertisements. Hire one of the style icons and market the product.market the product.

Market the product through regional channels and local stars to gain more mileage Market the product through regional channels and local stars to gain more mileage from the product.from the product.

Baby Soap to be marketed through campaigns and awareness programs as well as Baby Soap to be marketed through campaigns and awareness programs as well as Ads. Highlight the cost effectiveness and product from natural resourcesAds. Highlight the cost effectiveness and product from natural resources

ProductProduct UniverseUniverse AttributeAttribute CompetitionCompetition EffortEffort

Mysore Sandal Soap Mysore Sandal Soap (Normal)(Normal)

AllAll EmotionalEmotionalHealthHealthSwadeshi Campaign

LowLow LowLow

Mysore Sandal ClassicMysore Sandal Classic MIG,HIGMIG,HIG Beauty ConsciousnessBeauty ConsciousnessHealth (Natural Product)

HighHigh HighHigh

Mysore Sandal GoldMysore Sandal Gold HIGHIG StatusStatusBeauty ConsciousnessBeauty ConsciousnessHeritage Soap

Low Medium

Mysore Sandal Baby Mysore Sandal Baby Soap Soap

MIGMIG HealthHealthCost

Low Medium

Marketing Effort: Suggestions to change by adding additional attributes

Possible Solution & SuggestionsPossible Solution & Suggestions

LUX a HUL ProductLUX a HUL Product

HUL – Company OverviewHUL – Company Overview Hindustan Unilever Ltd. is a well-known and largest FMCG company in India. HUL has always 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 revamped its products to meet the changing needs of the consumer without compromising on the quality. quality.

HUL leads the market in the toilet soap category with 54.3% market share. Lux has inched up to be on 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 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.Hindustan Lever's largest selling soap brand - Lifebuoy.

Unilever is one of the world’s largest & leading MNCs in India. Unilever commenced their activities on Unilever is one of the world’s largest & leading MNCs in India. Unilever commenced their activities on a large scale by setting up their first factory in Netherlands in the year1872.a large scale by setting up their first factory in Netherlands in the year1872.

The usage of Unilever products by over 90% of people in Bangladesh stands a testimony to their The usage of Unilever products by over 90% of people in Bangladesh stands a testimony to their successful operation.successful operation.

The FMCG category is always a battleground for all the competing firms and the bathing soap 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 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 very easy. Within six months, ITC's soap products have been able to capture 1.75% of the market share.share.

Hindustan Unilever Limited (HUL), a 52%-owned subsidiary of Anglo-Dutch giant Unilever, has been Hindustan Unilever Limited (HUL), a 52%-owned subsidiary of Anglo-Dutch giant Unilever, has been working its way into India since 1888. Formerly known as Hindustan Lever Limited. The Group's working its way into India since 1888. Formerly known as Hindustan Lever Limited. The Group's principal activities are to manufacture and market consumer products. Hindustan Unilever Limited principal activities are to manufacture and market consumer products. Hindustan Unilever Limited (HUL), a subsidiary of Unilever, is a fast moving consumer goods (FMCG) company based in India. The (HUL), a subsidiary of Unilever, is a fast moving consumer goods (FMCG) company based in India. The company focuses on efficient delivery to consumers with an improved supply chain, brand building company focuses on efficient delivery to consumers with an improved supply chain, brand building initiatives and innovation, which has helped the company to sustain its leadership position in the initiatives and innovation, which has helped the company to sustain its leadership position in the overall FMCG category in India. overall FMCG category in India.

LUX stands for promise of beauty & glamour as one of India’s most trusted personal care brands.

LUX soap was launched in India in 1929.

LUX is the largest personal wash brand in the country with a value share of 15%.

Three in every five Indian consumers enjoy the luxurious bathing pleasure of Lux during the course of a year.

It has been winning hearts of Indian consumers for last 80 years.

It is considered as reliable & trustworthy.

It ranks first in the list of India’s most trusted brands & the others are Colgate, RIN, Thumps Up, Dettol, Fair & Lovely, Surf, Coca Cola, Pepsi, Horlicks in the order from second to tenth.

LUX - IntroductionLUX - Introduction

LUX soap was launched in India in 1929. The name "Lux" was chosen as the Latin word for "light" LUX soap was launched in India in 1929. The name "Lux" was chosen as the Latin word for "light" and because it was suggestive of "luxury.“and because it was suggestive of "luxury.“

LUX soap was first launched in the UK in 1899 as a flaked version of Sunlight soap. Subsequently LUX soap was first launched in the UK in 1899 as a flaked version of Sunlight soap. Subsequently it was launched in the US in 1916, and marketed as a laundry soap targeted specifically at it was launched in the US in 1916, and marketed as a laundry soap targeted specifically at 'delicates'. Lever Brothers encouraged women to home launder their clothes without fear of 'delicates'. Lever Brothers encouraged women to home launder their clothes without fear of satins and silks being turned yellow by harsh lye that were often used in soaps at the time. satins and silks being turned yellow by harsh lye that were often used in soaps at the time. The flake-type soap allowed the manufacturer some leeway from lye because it did not need The flake-type soap allowed the manufacturer some leeway from lye because it did not need to be shaped into traditional cake-shaped loaves as other soaps were. The result was a to be shaped into traditional cake-shaped loaves as other soaps were. The result was a gentler soap that dissolved more readily and was advertised as suitable for home laundry gentler soap that dissolved more readily and was advertised as suitable for home laundry use. Lux is currently a product of Unilever.use. Lux is currently a product of Unilever.

LUX was first introduced as a toilet soap in 1925 in U.S.A. Produced by Lever Brothers, it arrived LUX was first introduced as a toilet soap in 1925 in U.S.A. Produced by Lever Brothers, it arrived in the UK in 1928, offering people a chance to pamper themselves for a modest price.in the UK in 1928, offering people a chance to pamper themselves for a modest price.

LUX - OriginLUX - Origin


Availability of Availability of ProductProduct

Replenishment time high in semi Replenishment time high in semi urban & rural Areaurban & rural Area

TT Decrease the Replenishment by better Decrease the Replenishment by better distribution networkdistribution network

SS

Strong sales force and vast Strong sales force and vast penetration in the marketpenetration in the market

SS Increase in making the product Increase in making the product available in all segmentsavailable in all segments

SS

FunctionalityFunctionality Technological change makes the Technological change makes the existing products obsolete existing products obsolete

TT LUX should focus on technological LUX should focus on technological innovations like Body Wash.innovations like Body Wash.

WW

Usage Rate /wear rate high SS Customer education on usage of the soap SS

Beauty soap targeted towards women

TT Should work on Unisex appealShould work on Unisex appeal SS

WW



Utility Of ProductUtility Of Product Availability of other cheaper soapsAvailability of other cheaper soaps TT Make the pricing competitive Make the pricing competitive WW

Availability of substitute productsAvailability of substitute productssuch as liquid soapssuch as liquid soaps

TT Reduce Availability of Liquid soapsReduce Availability of Liquid soaps WW

New entrants/local competitors/ New entrants/local competitors/ MNCs would increase the MNCs would increase the competition competition

TT Reduce availability of other productsReduce availability of other products WW

DemandDemand Soap industry is growing by 10% in Soap industry is growing by 10% in IndiaIndia

OO Strong market presence Strong market presence SS

Large market share Large market share SS Strong hold over market Strong hold over market SS

Negative PropagandaNegative Propaganda TT Address the negative propaganda Address the negative propaganda through campaigns. through campaigns.

WW



Acceptance Of ProductAcceptance Of Product Excessive dependence on beauty Excessive dependence on beauty segment makes LUX vulnerable segment makes LUX vulnerable to changing customer tastesto changing customer tastes

TT Try to make LUX not only as a beauty Try to make LUX not only as a beauty product.product.

WW

Controversial interpretations Controversial interpretations of advertisement with Shah of advertisement with Shah resulting in loss of focusresulting in loss of focus

TT Look at all possible interpretation of Look at all possible interpretation of the message given by advertisement the message given by advertisement

SS

Positioning as the “soap of the stars” Positioning as the “soap of the stars” is not working well in rural area is not working well in rural area

OO Bring out advertisements which Bring out advertisements which influence rural area also influence rural area also

SS

Low Income Group FamiliesLow Income Group Families OO Cannot target this segment and Cannot target this segment and reduce the brand image of LUXreduce the brand image of LUX

TT



Today, LUX is one of India’s Largest exporters of branded Fast Moving Consumer Goods. It has been recognized by the Government of India as a Golden Super Star Trading House.

Consumers are loyal to the product. The company should work increasing market share basis loyalty.

LUX is catering to variety seeking behavior by way of variants.

LUX has created this image of beauty soap visually as well by the color of soap (white) and emphasizing milk as the key ingredient.

Currently Product Life Cycle Lux is in" maturity/decline" phase.

Current PositioningCurrent Positioning

Product Universe Attribute Competition Effort

Lux Women-All Age groupWomen-All Income

Group

Beauty ConsciousnessSkin Consciousness

High High

Marketing Effort : (Currently What marketing is trying to achieve)

Unique Attribute : Beauty Soap for Women

Possible Solution & SuggestionsPossible Solution & Suggestions

LUX has to bring more than one uniqueness- by may be introducing a Lux-Men's variant

Bring in a "macho quotient" attribute to the LUX Men's soap to cater to youth as well as other age group of men

Re- energies the "emotional " attribute of LUX Product by means of advertisement campaign which has some retro content or history content in it (like from leela chitnis-praveen bhabi to kareena etc.)

LUX has high penetration in urban & semi-urban areas. However, it has only 19.8% penetration in rural areas. Must increase distribution in rural area.

The company should keep a close watch on the competition body wash product as it does not take long to change peoples prospective.

ProductProduct UniverseUniverse AttributeAttribute CompetitionCompetition EffortEffort

Lux Women’s SoapLux Women’s Soap Women-All Age groupWomen-All Income

Group

Beauty ConsciousnessSkin ConsciousnessEmotional

Medium High

Lux Men’s SoapLux Men’s Soap Men-All Age groupMen-All Income Group

Macho Quotient MediumMedium MediumMedium

Marketing Effort: Suggestions to change by adding additional attributes

Possible Solution & SuggestionPossible Solution & Suggestion

Documents

Assignment PoM MysoreSandal Lux1