Homework Title / No. : launch of lux deo Course Code : _MGT514 Course Instructor: Mr. Manish Rajput Course Tutor (if applicable) : _____________
Date of Allotment: _____________________ Date of submission : 12/12/09
Student’s Roll No A (23) Section No. : S1901
Declaration: I declare that this assignment is my individual work. I have not copied from any other student’s work or from any other source except where due acknowledgment is made explicitly in the text, nor has any part been written for me by another person.
Evaluator’s comments: _____________________________________________________________________
Marks obtained : ___________ out of ______________________
Content of Homework should start from this page only:
OF Marketing Management [Launching lux deo]
SUBMITTED TO:- SUBMITTED BY:-
Mr. Manish Rajput Sahil Chauhan
Regd no. 10904914
Sec – RS1901 (A23)
1. Overview of company2. Product description3. Product profile/brand value 4. Market Analysis & Strategy of LUX Deos 5. Marketing Plan, Objectives and Strategies
6. Product mix and line
7. Launching of Deo
8. Market growth of deodorant
9. Swot analysis of HUL 10. Bibliography
First of all I would like to take this opportunity to express my gratitude towards all those people who have helped me in the successful completion of this term paper, directly or indirectly. I would also like to express my sincere gratitude towards “Mr. Manish Rajput” for her guidance and help which she willingly provided at every step of my term paper.
Finally, I would like to thank all my family and friends for their encouragement,
support and good wishes
Hindustan Unilever Ltd (HUL)
We all know that Hindustan liver limited is one of India’s (FMCG) fast moving
consumer goods company and have brands like Lifebuoy, Lux , Surf Excel, Rin, Wheel, Fair &
Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr ,
Kwality Wall's are household names across the country and other products such as soaps,
detergents, personal products, tea, coffee etc
In the 19th and 20th century Unilever export its products to India. Firstly HLL
began to export Sunlight soap in 1888, which was followed by Lifebuoy in 1895 and other
brands like Pears, Lux. Unilever set up its first Indian subsidiary, Hindustan Vanaspati
Manufacturing Company In 1931, followed by Lever Brothers India Limited in 1933 and United
Traders Limited in 1935. The three companies were merged and the new entity that came into
existence after merger was called as Hindustan Lever Limited in November 1956. HLL offered
10% of its equity shares to the Indian public, and was the first foreign subsidiaries to do so. HLL
acquired many companies like Brooke Bond, Lipton and Chesebrough Pond's USA and becomes
the one of the biggest player of FMCG sector
HLL has also set up subsidiaries in Nepal, Nepal Lever Limited
(NLL). The NLL factory manufactures HLL's products like Soaps, Detergents and Personal
Products both for Nepal and exports to India. In February 2007, company has been renamed as
"Hindustan Unilever Limited" to maintain balance between the heritage of the Company and the
future benefits with the corporate name of "Unilever”.
In January 2000, due to divestment strategy, the government decided to allocate
74 per cent equity in Modern Foods to HLL. In 2002, HLL acquired the government's remaining
stake in Modern Foods.HLL is the biggest Fmcg company in India having largest market share
and is one of the best marketing company in India.
Detailed Product Description
All know that LUX is one of the premium brands of HLL having
soaps, face wash, body lotion etc and is also famous among people. Everyone like to look
gorgeous and enjoy that confidence which makes us feel better. And that's what the Lux range
offers you – at a price you can afford. From the look and feel of the product packaging to the
subtle fragrances – is a delight to the senses. Lux has been making waves since 1924, when it
launched the world's first soap at affordable price. Lux was first introduced as toilet soap in
1925 produced by Lever Brothers. From the very beginning Lux soap colours and packaging
were altered several times to show changing fashion trends. Five colors made up the range:
pink, white, blue, green and yellow .
In in1990s, Lux responded to the growing trend by launching its
own range of shower gels, liquid soaps etc. Lux beauty facial wash, Lux beauty bath and Lux
beauty shower were launched. In 2004, the entire Lux range was relaunched in the to include five
shower gels, three bath products and two new soap bars.
Since 1930, over 400 of the world’s most stunning and gorgeous women
have been proudly associated with Lux advertisements and events. Marilyn Monroe, Demi
Moore and Aishwarya Rai have all been part of the Lux glamorous story.
HUL’s LUX has forayed into other categories including soaps, face wash,
hand wash, shower products etc. Also, in keeping with its tradition of providing modern,
products to consumers, company has launched a range of LUX deo.
Lux has also introduced new hand wash and soaps according to the needs of health conscious
consumers. Available in sandal, lime, spice and rose ensuring germ-free hands. The product was
launched in 2008.
Ever since its launch in 1924, Lux has been growing its brand image
regularly. All the campaigns for different variants have captured various changes in the brand
values without keeping away from the brand essence i.e. beauty and Freshness. These values
have a strong appeal and relevant appeal to both the sexes. Hence over the last couple of years,
lux has always closely monitored consumer behavior, changing attitudes and emerging needs of
the costumers. All of this has resulted in a brand that has not aged but grown into an active and
changing personality according to the need of the customer.
After 85years, Lux, remarkably still evokes a very high degree of trust and
respect in customers mind is still a tough competitor for other products. Thus it can be said that
lux has a good brand value and image in the mind of the customers.
Launching of LUX deo
We are proud to propose a new range of deodorant protection brings you
incredible natural effectiveness that is kind to both, you and environment. This year launch of the
new variant lux Deo, with the baseline ‘Aur Kya’ to communicate its positioning. It addresses
towards the need for effective body odour removal through the unique proposition of deodorant.
Today in the market, lux has three distinct variants, Lux face wash, beauty soap, creams
continues to operate in the 'healthy skin' category. Lux soaps are the strongest player in
This is a natural extract recommended by a professional dermatologist in
Arizona, U.S.A. It was already approved for safety and hygene.Lux Deo is the latest offer from
the HUL. This latest deo is based at satisfying a problem, hesitation to get close because of body
odour. It has a unique long lasting formula that prevents body odour for all day long. It comes in
two exciting fragrances: Spice and cologne that keeps user feeling fresh all day long.
The lux Body Deodorants made from 100% natural mineral salts which eliminate and prevents
body odor and allows the user feel fresh and clean for all day long. It gives excellent protection.
And, it is just pure and natural and prevents from causing bacteria. The protective layer will not
block pores. It is 100% free of perfumes and harmful chemicals. It is economical and ideal for
travel, as it is won't leak or run out unexpectedly.
Directions: Always apply to clean and dry skin. Simply spray deodorant underarms and also
works great for foot odor. For spray, just spray on directly on skin.
LUX has been closely identified by its innovation, which is reflected in its
promotions. It was the first brand of this category that comes up with an idea of creative offers
like gold coins and pendants in soap. After getting a good response from these offers they started
new offers to increase the sales like, Buy 3 Get 1 Free.
LUX advertising always had a strong impact on customers by carefully
choosing the elements which reflect aspects of the brand. No wonder then, the commercials
featuring of celebrities like, Hema Malani, Aishwarya Ray and kareena Kapoor makes the Lux
very famous among women’s and this creates an curiosity in the mind of girls for using the
The confidence that advertisement shows were closely connected to the
properties of the Lux product. The lux Deodorant targets audiences in the markets of India that
has appealed to different age groups of both sexes. The current advertising reinforces this bond
and the fact that lux has provided protection over the years.
Market Analysis & Strategy of LUX Deos
This report shows the market for the range of Lux Deodorants. LUX, a brand
of Hindustan Unilever Ltd. (HUL) in India, is launching a new range of deodorants in Indian
market. Thus this report contains information regarding market, image positioning etc. that will
help to launch the deodorants in the market. This report shows the market for Deodorants over
last 4-5 years, with relevant supporting quantitative information. Report also projects
performance and potential of the market for the next 5-6 years and predicts the situation of
market for the product.
After analyzing the situation of market there is need of identify the multiple segments of market
for deodorants by using certain criteria such as demographic, psychographic and behavioral
characteristics of the consumers. Segmentation will help in defining the target customer. Among
these segments, we will analyze only those in which Lux is active because of the best
opportunities available. This is called ‘Target Segments’ and the procedure is called Targeting.
After specific targeting become clearer then the need of identifying target consumer arises, or in
other words it can be said that brand Positioning for Lux. Thus, the STP (Segmentation,
Targeting, Positioning) model will help in described above and helps us in defining the
marketing process for launching the product successfully.
Marketing Plan, Objectives and Strategies…
If a company wants to increase their sale they should have marketing objectives and should lead
to sales. .They should:
be measurable, and
Have a stated time frame for achievement.
Examples of marketing objectives follow:
Must create awareness among the target audience by 30 percent in one year.
Must Inform target audience about features and benefits of product and its competitive
advantage through advertisements and marketing activities.
Decrease or remove potential customers' resistance to buying product,and leading to a 20
percent increase in sales that are closed in six months or less.
If you had multiple objectives made sure that they should not conflict with each other and
should be consistent. Also, be sure that the remainder of your marketing plan components - the
marketing strategy, action programs, controls and measures, budget - supports your marketing
Setting your marketing objectives and finalizing the remaining components of your marketing
plan may serve as a reality check: Do you have the resources necessary to accomplish your
The marketing strategy section of your plan outlines your game plan to achieve your marketing
objectives. It is, essentially, the heart of the marketing plan. The marketing strategy section
should include information about:
Product – about your product(s)and services
Price - what you will charge customers for products and services
Promotion - how you will promote or create awareness of your product in the
Place (distribution) - how you will bring your product(s) together with your customers.
These are the "4Ps of marketing":
However, brief explanations of what should be included in the marketing strategy section of your
marketing plan pertaining to the 4 Ps appear below.
A product can be a physical item, a service, or an idea.
Describe in detail your products or services in terms of the features and benefits they
Describe what you need to have or do to provide your product or service (how it's
List the price of your products and describe your pricing strategy. List price ranges for product
lines. For example, if your product is a line of cosmetics, include information in this strategy
section about your deodorant "ranging in price from 100 to 150 per item" rather than a detailed
product price list. (You should, however, consider including a detailed price list in the
Supporting Documents section.)
Describe any price flexibility or negotiating room, as is common with large purchases such as
houses or cars. Outline any discounts you offer for long-term customers, bulk purchases or
prompt payment. Also, include the terms of sale, such as "net due in 30 days," extended payment
plans, and whether you accept credit cards.
a promotion plan describes the tools or tactics used to accomplish your marketing objectives.
In your Action Programs section, you will describe the steps that need to be taken in detail, when
they should be done, who will do them, and so on.
Placement (Sales and Distribution)
In this section, describe how your products and customers "meet" or come together through sales
Describe your sales philosophies and methods. Do you employ an aggressive sales method for a
large number of quick sales, or a relaxed method where the emphasis is on having customers feel
comfortable to come back another time even if they don't buy now? Do you use contract sales
people or employees? Explain your approach to sales issues.
PRODUCT MIX AND LINE
A product mix (also called product assortment) is the set of all products and items that a
particular seller offers.
A product mix consists of various product lines.
A product line is a group of products that are closely related, because they function in a similar
manner, are sold to the same customer groups, are marketed through the same types of outlets, or
fall within given price ranges.
Width – Number of different product lines offered
Length – Number of products offered within a particular product line.
Product Line Depth – Number of versions offered of each product in the line.
Packaging involves designing and producing the container or wrapper for a product. The package
may include the product's primary container a secondary package that is thrown away when the
product is about to be used and the shipping package necessary to store, identify, and ship the
product. The Soothe deodorant contain in stylish bottle. It will be the primary container of the
Soothe, and there will be no secondary package for the Soothe deodorant.
Growing Use of packaging as marketing tool:
1. Self service
2. Consumer affluence: consumer is now willing to pay a little more for Convenience,
appearance and prestige of better packages.
3. Company & Brand Image: Instant Recognition
4. Innovation Opportunity
Printed information appearing on or with the package, is also part of packaging.
On the bottle of the deodorant there will be really stylish printing innovated by experienced
designers, stylish cap. Written all the information about the Soothe deodorant.Net volume, price,
manufacturing date and the variant.
Launching of Deo
HLL want to launch a new product of lux into market. This time
co. is launching lux deo with different fragrances for men’s and women’s. They had done
homework and decided exactly what to offer and how to generate sales. It is very difficult to
increase sales because these days large number of products were launched everyday and there is
very tough competition in market. So for this there is a proper procedure to launch product in the
market and defined a proper procedure of launching a new product in the market. Lux deo is the
brand extension of the lux range and it will provide benefit in the success of the product. These
are the following steps kept in mind………….
1. Identifying the competitors: - Before launching the product a proper market
study must be done to know the competitors in the market and their strategies. There are various
competitors of HUL in market offering large range of products like dove, Park Avenue, play boy
etc. So for this there is a need of market survey and have to take a serious look at competitors
by doing the proper SWOT (strengths, weaknesses, opportunities and threats) analysis. By doing
swot analysis strategies and target market of competitors will come to know and helps in making
the policies to compete with them. As HUL is launching deo under the brand name LUX it is
important to know the products offered in the market by competitors. There are various products
like brut, axe etc offered by competitors but if new product or service is entirely unique and
without any competition, it's important to put product according to the customers
prospective .Once it is decided whom will be competitor’s, review their marketing strategy,
including their ads, brochures and websites and target market after all the process it is to be
evaluated how new product will stand up against other products.
2. Target the customer. To successfully launch a new product with minimum financial
outlay, it's essential to focus exclusively on those customers who are targeted according to the
different segments. These customers may be those peoples currently buying something else and
can appreciate the additional features of new product offered to them. So for targeting the market
there must be a proper segmentation according to age, sex, taste, preferences etc. There will be a
proper positioning of product in the mind of the customers.
3. Define marketing strategy and techniques. After defining the target
customer, sales and marketing channels also must be decided. It must be decided whether to do
distribute through internet or dealers .Generally, multichannel marketing achieve the greatest
success .It is necessary to know target customer and target market. Suppose your strategy is to
market a low-cost customer you might choose traditional direct marketing sales as your primary
channel. The trend from traditional strategies based on personalization, rather than generalization
approaches integrated. If you want to target high cost customer you might use traditional as well
as modern techniques to distribute the products. HUL involve the whole organization, because it
needs both internal and external communications to identify the strategy and direction of the
4. Test concept and marketing approach. With all the efforts and money it takes
to bring a new product to market, it is foolishness to rush to the launch phase before testing your
product. It's best to examine product, marketing message and marketing materials offered by the
company. Before launching the product it is to be tested whether the product will be accepted by
the customer or not. Only after testing is complete, company should proceed to the final creation
of marketing approach and strategy.
5. Positioning:-Positioning is the art of designing the company’s offer and image to occupy
a place in the mind of the target customers. The goal is to locate the brand in the mind of
consumers to maximize the benefits of the firm. Positioning starts with a product . Therefore it is
important to develop approach in order to obtain a brand image, target the market and to position
the LUX deo to their respective target markets. The present report focuses on the explanation of
the promotional, marketing mix and business strategy.
6. Roll out campaign. Campaign often plays a vital role in the launch of a product. There
are various ways of campaign like through advertisement, events, public relations etc .But no
matter what publicity route you choose, first make sure your product is ready and available for
purchase in order to maximize returns. And other marketing efforts should follow closely on the
press roll out. Monitor the results of all media, and in the first weeks and months, be prepared to
adjust campaign to take advantage of what is working best. Company must hold various
promotional events, advertisements for the promotion of the product. As HLL is launching the
deo there must awareness and availability of the product in market which is only possible by
promotional campaign. All the Medias like newspapers, tv, radios, internet etc must be used for
the promotion of the product.
7. Launch of the product: - After a proper campaign process it is to be decided about
the launch of the product keeping in mind the various concepts of marketing mix. A proper
process must be followed keeping in mind the 4p’s price, place, product, promotion .when all is
set launch product by handling an inaugural ceremony.
8. Taking the feedback from customer:- work doesn’t ends after launch of the
product now it’s time to take feedback from customer about the product. Feedback will tell
whether the product is successful or not. Company will also come to know about the need of
customer and can review the product. Feedback is necessary because by this it can be specified
that what consumers want and what they are getting. It will also help in the launching of new
9. Know your product's lifecycle. The campaign which is used during the
introduction phase of product launch will need to be updated as product matures. It is needed to
monitor the marketing results carefully and record the results that will indicate when it's time to
revise the product, media message for generating the higher revenue. This is needed because
every product reaches the maturity stage where revenue generations decrease and it’s time to
review the product.
Market growth of deodorant
This graph shows the market growth of the product after the one month of launch up to
the fifth month. According to this market survey products market share increases rapidly but due
to tough competition in the market it starts declining at the ending of second month.
Graphic representation of product growth
But after the end of the third month sales increases due to the quick response of the
company.HUL increases the sales promotion of deodorant creates awareness in the market. Due
to this there is increase in the sales and remain constant up to fifth month. This shows that after
launching the product job doesn’t ends product but it needs regular promotion in case of new
product. After examining the market cause of decline in the growth of product indicates that it is
caused by due to the decrease in the price of the other company’s product. So here HUL reduces
its products prices and records increase in the growth rate and maintained it. Market survey is
must in today’s competitive world because market trends keep on changing regularly so that’s
why it’s necessary.
Swot analysis of HUL
1. HUL as well as Lux has Strong and well differentiated brands with a good share positions
in the market. Brand image and value will help in positioning of the new product.
2. Strong R&D based products which are delivered to customers make a platform for the
success of deo due the trust of customers on HUL.
3. Deodorant have advantage due to the introduction of two new fragrances i.e. Spice and
1. Competition with own products
2. Competition with other products like Rexona, Setwet etc
3. High price then other products
1. Aggressive price competition from local and multinational players.
2. Unfavorable raw material prices.
1. Brand growth through increased consumption depth and frequency of usage across all
2. Market and brand growth through increased penetration especially in rural areas.
3. Upgrading consumers through innovation to new levels of quality and performance.
4. Growing consumption in Out of Home categories Establishing HLL as a sourcing hub for
Unilever companies in various countries.
Marketing management by Philip Kotler, Kelvin Keller