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PROJECT ON MARKET SEGMENTATION, CONSUMER BEHAVIOR, PRODUCT POLICY POSITIONING OF LUX SOAP Submitted to: Submitted by Dr.Reeti Agarwal Ashutosh Srivastava (JIML-10-032) Abhishek shukla (JIML-10-03)

Project on Mm-On Lux Soap

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Page 1: Project on Mm-On Lux Soap

PROJECT ON MARKET SEGMENTATION, CONSUMER BEHAVIOR, PRODUCT POLICY

POSITIONINGOF

LUX SOAP

Submitted to: Submitted by

Dr.Reeti Agarwal Ashutosh Srivastava (JIML-10-032) Abhishek shukla (JIML-10-03) Ashima Saxena (JIML-10-FS-005) Deepti Mahawar (JIML-10-R-001) Mamta Agarwal (JIML-10-R-003)

Page 2: Project on Mm-On Lux Soap
Page 3: Project on Mm-On Lux Soap

ACKNOWLEDGEMNT

Perseverance Inspiration and motivation have always played a key role in the success of any venture. So hereby, it is our pleasure to record thanks and gratitude to the people involved.

Firstly, we thank DR. REETI AGARAWAL for her continuous support in the project.DR. REETI AGARWAL was always there to listen and to give advice. She is responsible for involving us in the project on Soap Industry in the first place. She showed us different ways to approach a research problem and the need to be persistent to accomplish any goal. Without her encouragement and constant guidance we could not able to finish the project. She was always there to meet and talk about any query.

Last, but not least, we would like to thank all class mates and hostel mates who support us throughout the project.

ASHUTOSH K.SRIVASTAVA ABHISHEK K. SUKLA

ASHIMA SAXENA MAMTA AGARWAL DEEPTI MAHAWAR

Page 4: Project on Mm-On Lux Soap

COMPANY PROFILE- HUL

1 A 52 % Owned Subsidiary of Anglo Dutch giant Uniliver 2 India’s largest FMCG company

3 Touching 2 out of 3 Indian consumer

4 20 distinct categories- Home and personal care products, food and beverages

5 HLL-HUL

6 100 factories in India-manufacturing its diverse product range

7 Headquarter-Mumbai

8 Market share-toilet soap category-54.3 %

9 With over 7 brands-Lux,Lifebuoy,Hamam,Dove,Rexona,Breeze and Pears

DISTRIBUTION CHANNEL-HUL

2000 + Suppliers and associates 4000 redistribution stockiest Covering 1 million retail outlets Reaching 250 million rural consumers

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OVERVIEW: LUX SOAP 1916-Laundry soap 1925-Bathroom soap 1929-Launch in India First brand Ambassador-Leena Chitins(1929) Current brand Ambassador-Asin Thottumkal in India(17- sep

-2010)

Lux stands for promise of beauty and glamour as one of the India’s most trusted personal care brands with value share 15 %

LUXURY

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FACTORS THAT WILL AFFECT PURCHASING OF LUX SOAP:- Factors that will affect purchasing of Lux soap are followings-1-CULTURAL FACTORS:-

Purchasing of Lux soap affect from movie star because people think that if it is good enough for a film star, it is good for me.

Purchasing of Lux soap affect from income of people. Rural people will not purchase Lux generally due to its high price.

Generally use in Asia like India and Pakistan

2-SOCIAL FACTORS:- Purchasing of Lux soap affect from family purchasing. if

my family and siblings use Lux soap since years than I will definitely purchase Lux soap.

If my friend group uses Lux soap then I will definitely use Lux soap.

Many people think that to use Lux is state symbol so they will use Lux soap.

3-PERSONAL FACTORS:- Generally purchasing of Lux soap is done for age group 15-

50+ so for baby there is no Lux soap so people may be move to other brand during soaping.

Lux is beauty soap so for personality grooming people will purchase Lux soap.

Generally people with good occupation will purchase Lux because its price is suitable for high income group people.

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4-PSCHYCOLOGICAL FACTORS:- Lux purchasing will be definitely affected from

pschycological factors like motivation, perception.For example in tension or stress condition you can purchase any soap rather than Lux.

Motivational speeches of celebrities also influence purchasing of Lux.

5-SITUATIONAL FACTORS:- Situational factors like mood of consumer, time, and term

and conditions money also affect purchasing of LUX.For example-1-Due to lack of time people can purchase any soap rather than Lux.2-Due to penetration of new soap of other brand in lower price in market people can also switch to that soap rather than buying Lux soap.3-Mood of consumer also affects purchasing. If consumer decided to use soap due to its more qualities than Lux, then it will affect purchasing of Lux.

4-Term and condition also affect purchasing of LUX.When one Lux or another product is free on purchasing of Lux, then definitely people will purchase more Lux soap.

5-Cost of product also affect purchasing. Due to its high cost rural poor people doesn’t like to buy Lux soap.

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Market segmentation-

. A market segment is a sub-set of a market made up of

people or organizations with one or more characteristics

that cause them to demand similar product and/or

services based on qualities of those products such as

price or function. A true market segment meets all of the

following criteria: it is distinct from other segments

(different segments have different needs), it is

homogeneous within the segment (exhibits common

needs); it responds similarly to a market stimulus, and it

can be reached by a market intervention.

The term is also used when consumers with identical

product and/or service needs are divided up into groups

so they can be charged different amounts. The people in

a given segment are supposed to be similar in terms of

criteria by which they are segmented and different from

other segments in terms of these criteria. These can

broadly be viewed as 'positive' and 'negative' applications

of the same idea, splitting up the market into smaller

groups.

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Qs. On the basis of the different buying roles enumerate which role will be played by which member of your family?

Ans. The different buying roles and those buying role takers have been stated as follows:

1. Initiator –Give idea of buying. Initiator can be any one according

to the needs and desires. If for instance Lux soap has to be

purchased then father or mother, any one can be the initiator

for that purchase.

2. Influencer –Who influence buying idea. This role is most of the

times occupied by mother and children who will influence the

decision either by spreading their own knowledge regarding

that product or through their various sources like

advertisements, neighbors or society etc.

3. Decider – This role is played by the father who is the only one

earning in the family. Therefore, the payment is made by him

and he is considered as decider.

4. Buyer- This role is fulfilled by anyone who goes to market to

buy Lux product. This shows that father, mother, sibling and

myself are the buyers.

5-User – This role is again occupied by everyone as because everyone at home is the user of the Lux product

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Qs.What kind of buying behavior wills your purchase of that particular product exhibit?

There are different kinds of buying behavior. According to the

brand which we have chosen that is Lux the buying behavior

exhibited is habitual buying behavior. There is no much

difference between the products of this brand and the products of

other brands as well as the buyer involvement are low as because

the purchase is not much expensive and frequently found in

everywhere and Lux soap loving individual’s habits to buy Lux

soap every time. Therefore Lux comes under this kind of buying

behavior.

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Qs.Analyse what categories of product mix analysis for the

company you had undertaken?

Lux and other soaps fall into the category of convenience goods

. They are compared with other products in the category on

the basis of suitability, quality, price

PRODUCT MIX; -A product mix (or product assortment)

consists of all the product lines and items that a

particular seller offers for sale.

A company’s product mix has four important

dimensions: width, length, depth, and consistency.

Product mix width refers to the number of different

product lines the company carries

 Product mix length refers to the total number of

items the company carries within its product lines.

Product line depth refers to the number of versions offered of each product in the line.

Consistency of the product mix refers to how closely relate the various product lines are in end use, production requirements, distribution channels, or some other way. 

PRODUCT LINE:- 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

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PRODUCT MIX-HUL-Company carries a number of different product line

1. PERSONAL WASH1-Lux2-Lifebuoy3-Liril4-Hamam5-Breeze6-Dove7-Pears8- Rexona

2. LAUNDRY1-Surf excel2-Wheel3-Rin4-Sunlight

3. SKIN CARE1-Fair & lovely2-Ponds3-Vaseline4-Aviance

4. HAIRCARE

1-Sunsilk naturals2-Clinic

5. DEODRANTS

1-Axe 2-Rexona

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6. ORAL CARE1-Pepsodent2-Closeup

6. COSMETICS1-Lakme

7. AYURVEDIC PERSONAL ANDHEALTH CARE1-Ayush

8. TEA1-Brookbond2-Lipton

9. COFFEE1- Bru

10.FOODS1. Kissan 2. Annapurna3. Knorr

11.ICE CREAM1-Kwality walls

WIDTH ═ 12LENTH ═31DEPTH ═Suppose LUX has 9 variants(almond,orchid,fruit,saffron,sandalwood,international,chocolate,aromatic extracts, oil and honey glow)and 3 different size(100 gram,120gram,150 gram) then PRODUCT DEPTH ═ 9 ×3═27

CONSISTENCY ═ LUX’s product lines are consistent insofar as they are consumer products that go through the same distribution channels. The lines are less consistent insofar as they perform different functions for buyers. So overall Consistency is HIGH

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PRODUCT LIFE CYCLE -

INTRODUCTION OF PRODUCT LIFE CYCLE:-

PLC shows the stages that products go through from development to withdrawal from the market.

Each product may have a different product cycle. PLC determines revenue earned. PLC contributes to strategic marketing planning. To identify when a product needs support, redesign, renovating,

withdrawal etc.

I

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INTRODUCTION STAGE OF PLC OF LUX SOAP:-

In initial stages LUX was introduced in the major cities of India like Calcutta, Mumbai etc.Marketing objectives:- to create the product awareness and to attract the customer towards the product.

LUX MARKETING STRATEGIES IN INTIAL STAGE:-

PRODUCT-They offer only one product in the market. They did not come up with the differentiated product.

PRICE-In the initial stages of the product; they offer the relatively higher price than their competitor (lifebuoy) because they want to recover their initial cost of making the product.

ADVERTISING-In the initial stages, they allocate more advertising budget so that more and more customers could be attracted towards the product.First ambassador was Leela Chitnis.

DISTRIBUTION-It was selective and only covers the major cities of India to get recognition in those cities.Their distribution through-MANUFACTURER-WHOLESALER-RETAILER.

SALES-low salesCOSTS-High cost per customerPROFITS-NegativeMARKET STRATEGIES-Create product awareness in major cities of IndiaPRODUCT SRTATEGY-Offer a basic productPRICE STRATEGY- Use cost plusDISTRIBUTION STRATEGY-Build selective distributionADVERTISING STRATEGY-Build product awareness

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GROWTH STAGE:-In the growth stage, their sales rapidly started rising.

MARKETING OBJECTIVES- They have expanded their market to their other cities of India.To maximize more market share

MARKETING STRATIGIES-PRODUCT-In the growth stage, the company had offered the same product in the market.

PRICE-In this stage, company had reduced their price to some extent Because of maximizing the market share.

ADVERTISING-In the growth stage, they had increased their advertising budget as in the initial stages because of attracting the new customers or to retain the existing customers.Sharmila Tagore,Hema Malini,Zeenat Amaan,Juhi Chawala,Madhuri Dixit,Sridevi.

DISTRIBUTION-In this stage, company had expanded their market to other cities of India. Distribution channel was same as in the initial stage.

PROMOTION-In the growth stage company had also used the different proportioning strategies to attract the new and existing customers.

SALES-Rapidly rising salesCOSTS-Average cost per customerPROFITS-Rising profitsMARKETING OBJECTIVES-Maximize market sharePRODUCT STRATEGY-Offer product extension servicesPRICE STRATEGY-Price to penetrate marketDISTRIBUTION STRATEGY-Build intensive distribution

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ADVERTISING STRATEGY-Build awareness and interest in mass market.

MATURE STAGE:-They modified the product by adding some changes in the product.In this stage few competitors enter into the market like CINTHOL, FAIRGLOW, SANTOOR, FIAMA DI WILLS, and VIVEL.

MARKETING OBJECTIVES-To maximize more profit while defending the market share and to expand the market to all the cities of India.

MARKETING STRATIGIES-PRODUCT-The LUX has made the modification in the product by introducing LUX almonds, LUX fruit, LUX saffron, LUXsandalwood etc.

PRICE-The LUX products are now available at higher prices in the market to gain maximum profit.DISTRIBUTION-Available in all cities of India.

ADVERTISING-LUX advertising has been reduced to some extent because of the more brand awareness in the minds of the customers.Recently they have shown Aishwarya Rai, Kareena Kapoor, Abhishek Bachhan, Asin etc.

PROMOTIONAL OFFERS-Buy 3, get one free

SALES-Peak salesCOSTS-Low cost per customer

PRODUCT STRATEGY-Diversify brands and modelsPRICE STRATEGY-Price to match or best competitors

DISTRIBUTION STRTEGY- Build more intensive distributionADVERTISING STRATEGY-Stress brand differences and benefits.

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DECLINE STAGE-Besides of all the campaigns for sales promotion of LUX, the reasons for its decline are-

1-CURRENCY FLUCTUATIONS-Unilever products are in over 100 countries; as a result it is exposed to adverse currency fluctuations like fluctuations due to euro exchange rate.

2-SLOW DOWN-Due to economic crisis in 2008-09, customers started looking products cheaper than LUX.

3-COMPETITION-LUX has been facing competition from HUL itself (LIFEBOUY) and from other companies like Godrej products (like CINTHOL, FAIR GLOW), WIPRO like SANTOOR, ITC like Superia, vivel etc.

SALES-Declining sales

COSTS-Low cost per customer

PROFITS-Declining profits.

MARKETING OBJECTIVES-Reduce expenditure

PRODUCT STRATEGY-Phase out weak items

PRICE STRATEGY-Cut price

DISTRIBUTION STRATEGY-Go selective phase out unprofitable outlets.

ADVERTISING STRATEGY-Reduce to level needed to retain hard core loyal customers

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PRODUCT CATEGORY AND BRAND

LUX soap comes under HUL BRANDS and BATHING SOAP category

HUL BRANDS in bathing soap category are- LUX, DOVE LIFEBOUY HAMAM PEARS LIRIL BREEZE REXONA

BASES OF SEGMENTATION USED FOR LUX SOAP:-

Demographic segmentation:

Age: 15-50+Gender: female, Male•Family size: 2, 3-4, 5+•Income: Rs.10, 000+•Target Area: Higher income group

Behavioral segmentation

• Benefits: Quality, • Fragrance & Skincare.

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• •User status : Regular user

Pschyco graphic segmentation

• Social class: Middle & • Upper class. • Lifestyle: Outdoor- Oriented, House-wife

Geographic segmentation• World region: Asia• Country: India, Pakistan• Cities: All cities of India& Pakistan • Target Area: Urban & Semi Urban

Qs-LEVEL OF MARKET SEGMENTATION USED BY LUX

Level of market segmentation used is micromarketing wherein HUL uses segment marketing for its products. The different kinds of product produced by HUL are directed towards different market segments like soap with varying size and price to meet customer requirements.

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Qs-PATTERN OF MARKET SELECTION THE COMPANY HAS ADOPTED:-

Lux is not an highly expensive but an affordable product. That is why the company targets urban and suburban, upper middle and middle class people who are the second highest population of segment category

HUL has adopted Selective specialization and full market coverage

strategies.

1-SELECTIVE SPECIALIZATION STRATEGY- This is a multiple-

segment strategy, also known as a differentiated strategy. Different

marketing mixes are offered to different segments. The product itself may or

may not be different - in many cases only the promotional message or

distribution channels vary .

2-FULL MARKET COVERAGE STRATEGY:- Firms tries to serve all customer

groups with all product that they need. Under this strategy, particularly

HUL has adopted DIFFERENTIATED MARKETING STRATEGY in

which firms operates in different segments and designs different product for

different segments.

EXAMPLE-

HUL launched the SUNLIGHT (Yellow),WHEEL(Green),RIN(Blue),and

SURF ULTRA(White) detergents powders for different market segments.

Page 22: Project on Mm-On Lux Soap

POSITIONING THE HUL HAS ADOPTED:-

POSITIONING:- It is the art of designing company’s offering & image so

that they occupy a meaningful /distinct competitive position in the target

customer’s mind.

LUX POSITIONING:-

Lux wanted to ensure that the brand be positioned as premium but also did not wanted to compromise on the share. Thus born international Lux which is the premium variant and the affordable segment was catered by Lux beauty soap. Earlier the brand uses the positioning” Beauty soap of film stars”.

Page 23: Project on Mm-On Lux Soap

RELATIONSHIP BETWEEN LUX POSITIONING & ITS PUNCHLINE

Lux international has moved from being a soap brand to a skin care brand according to the tagline” Not just soap, its skincare”.Lux has also launched strawberry and cream and peaches and cream soaps..

The USP of the product of the company :-

1-Lux is a brand that appreciates beauty and glamour.

2-Lux is a beauty soap of the film stars,

3-A delight to the senses.

4-Lux celebrates the indulgent ritual of beautification.

5-Lux is always reliable and trustworthy