Transcript Marketing Project Report on Lux Soap

Marketing Project Report
on Lux Soap
By:
Amit Kumar Sinha
PGDMRM-002
IPE, Hyderabad
Contents:
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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
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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 wash
 Laundry
 Skin care
 Oral care
 Deodorants
 Colour cosmetics
 Ayurvedic personal and health care
 Shampoo
 Tea
 Coffee
 Foods
 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, Rexona
 Laundry: Surf excel, Rin, Wheel
 Skin care: Fair & Lovely, Ponds, Vaseline, Aviance
 Oral care: Pepsodent, Close up
 Deodorants: Axe, Rexona
 Colour cosmetics: Lakme
 Ayurvedic personal and health care: Ayush
 Shampoo: Sunsilk, Clinic
 Tea: Broke bond, Lipton.
 Coffee: Bru
 Foods: 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:
Tangible
Non durable good
 Lux and other soaps fall into the category of
convenience good.
Product Life Cycle:
Maturity Stage
Prominent Variants:
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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 – Jayalalitha
Shriya 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 HUL
9.2% Market share
Brands: Cinthol, Fairglow, Nikhar
 Wipro:
 Brand: Santoor (No 1 in AP) and Chandrika
ITC:
1.75% growth in initial five months
Brand: Superia, Fiama di wills and Vivel
Sold in six states
Market segmentation
Market segmentation of Lux
Gender: Female
Age: 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???