Marketing Project Report on Lux Soap

By:Amit Kumar Sinha

PGDMRM-002IPE, Hyderabad

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

Company Profile - HUL

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%

Revenue Percentage:

Distribution Channel - HUL

Distribution Channel - HUL 2000+ Suppliers and associates

4000 Redistribution stockists

Covering 1 million retail outlets

Reaching 250 million rural consumers

Product Mix- HUL

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 washLaundry Skin care Oral careDeodorantsColour cosmeticsAyurvedic personal and health care

ShampooTea CoffeeFoods Ice cream

Width = 12

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, RexonaLaundry: Surf excel, Rin, Wheel Skin care: Fair & Lovely, Ponds, Vaseline,

Aviance Oral care: Pepsodent, Close upDeodorants: Axe, RexonaColour cosmetics: LakmeAyurvedic personal and health care: Ayush

Shampoo: Sunsilk, ClinicTea: Broke bond, Lipton.Coffee: BruFoods: Kissan, Annapurna, Knorr Ice cream: Kwality walls

Width = 30

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 (3*3)

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.

Overview : Lux Soap

1916 – Laundry soap

1925 – Bathroom soap

India – 1929

First brand ambassador: Leela Chitnis (1929)

Market share is almost equal to Lifebuoy

Marketing Mix:

Product:Product Classification:

TangibleNon durable good

Lux and other soaps fall into the category of convenience good.

Product Life Cycle:

Maturity Stage

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.

Logo:

Labelling:Lux trade character or logo is present prominently in the package

Female model

Displayed graphically – Key ingredients

Packaging:Different colors – Different variants( Saffron – Saffron variants & Pink – Rose extracts etc. )

Package size – 100gm, 120gm, 150 gm

Launched – Mini Lux – 45gm - Rs 5

Price: Competitive prices: Neither high nor low

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

Network:

Factory – Company warehouses – Distributor – Market

Factory – Wholesaler & Big retailers (Bulk orders) – 30% Sales

Promotion:Active since 1929

Featured all top actress of their times.

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

First Male Brand Ambassador:

South India:1970 – JayalalithaShriya Sharan

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.

SWOT Analysis

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

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)

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

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

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

Competitor Analysis

Internal Competitor:Lifebuoy: 1895, 18% Market shares

External Competitor: Godrej consumers products limited

(GCPL): 2nd Largest soap maker after HUL9.2% Market shareBrands: Cinthol, Fairglow, Nikhar

Wipro: Brand: Santoor (No 1 in AP) and

Chandrika

ITC: 1.75% growth in initial five monthsBrand: Superia, Fiama di wills and

VivelSold in six states

Market segmentation

Market segmentation of LuxGender: FemaleAge: 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

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

Recommendation:

Recommendation:Ayurvedic variant

Lux kids special soap

Target rural area

Target male customers

References:

References:www.capitaline.com www.hul.com www.google.com www.wikipedia.com www.mbaparadise.com www.fmcg.com

Questions???