SWOT ANALYSIS

Strenghts

Weaknesse
s

Opportuniti
es

Threats

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)
Dynamically continuous innovations New variants and innovative promotions (22 carat gold coin
promotion Chance Hai)
Strong brand promotion but relatively lower prices Winning combination
Lux soap brand is sold in over 100 countries

Weaknesses

Mainly positioned as beauty soap targeted towards women, lack unisex appeal
The stock replenishment in semi-urban areas and rural areas is quite long, despite having such a
wide distributor network. This leads to stock out in these areas.
Penetration in the rural areas is still less.

Opportunities

Line extension probably with more variants catering to the beauty segment like natural, herbal
soap etc.
Liquid body wash is currently in the growth stage Lux should come out with more variants in this
segment
Level of servicing is high during sales promotion schemes
Soap industry is growing by 10% in India
Large market share Strong hold over the market

Threats

Number of competitors is rising ITC, P&G, etc are fast catching up.
High internal competition (Pears, Dove Beauty segment)
New entrants in this segment
Maturity stage threat of slipping down to decline stage if constant reinvention is not carried
out
Excessive dependence on beauty segment makes Lux vulnerable to changing customer tastes