Market Analysis of

Mysore Sandal And LUX

Name SMS ID
Rakesh Ramachandran 106106
Mohan Reddy J 105916
Vinay Kashyap 106440
Sona Joy 105694
Purushotham Naidu 106499
Praveen Singh 105742

Batch 17
Faculty Professor Pingali Venugopal
Group 18
Mysore Sandal Soap (KSDL Product)
 KSDL – Company Overview
 Mysore Sandal Soap is a brand of soap manufactured by the Karnataka Soaps and Detergents
Limited (KSDL), a company owned by the Government of Karnataka in India.

 The Government Soap Factory was established by the Maharaja of Mysore his Highness
Nalwadi Krishnaraja Wodeyar and Diwan Sir.M.Visvesvaraya during the year 1916.

 In 1980, Authorities of Mysore joint the Sandal oil factories at Metropolis and Shimoga and
Regime Max Mill at City and definite State Soaps & Detergents Qualified KSDL (Karnataka
Soaps & Detergents Limited), which has been merged as a Consort under Troupe's Act 1956.

 The KSDL's soap factory in Bangalore that manufactures the Mysore Sandal Soap is one of the
largest of its kind in India having an installed capacity to produce 26,000 tonnes of soap per
annum

 As the name suggest, one of the main raw materials required for production is Sandalwood.

 Mysore Sandal soap held a 6500 tonnes share among the 450 thousand tonnes of soap
produced and marketed annually in India.
 KSDL – Company Overview
 KSDL had sales of Rs 1.15 billion (about $ 28.75 million) in the recent past with the Mysore
Sandal Soap having an average monthly sale of about Rs. 75 million ($ 1.87 million).

 About 85% of the sales of this soap are from the South Indian states of Karnataka, Andhra
Pradesh and Tamil Nadu.

 KSDL's products are regularly exported to UAE, Bahrain, USA, Arabian Arabia, Kuwait,
Southeastern Easternmost Eastern countries etc.

 The company is diversified and manufactures incense sticks, talcum powder and detergents;
apart from soaps.

 Head office : Bangalore

 Situation Analysis
 Mysore Sandal Soap has good presence in South Indian states like Karnataka,
Andhra Pradesh & Tamil Nadu.

 Mysore Sandal Soap have different varieties to cater to different customer

requirements
 Mysore Sandal Gold & Classic Soap
 Mysore Sandal Baby Soap
 Carbolic Soap, Wave Turmeric Soap – Ayurvedic Brands
 Mysore Rose Soap & Mysore Herbal Care Soap

 Mysore Sandal Soap not popular in North Indian States

 Mysore Sandal Soap is facing huge competition from other national and
International brands like Lux, Dove, Johnson & Johnson etc which easily appeal to
current youth.

 The Soap has not been marketed in a high profile manner and only during the year
2006-07, M. S. Dhoni, the Indian Cricketer was selected as the first brand
ambassador of the Mysore Sandal soap.
 Situation Analysis
 Mugdha Godse (model/actress) was selected in 2009 to promote Mysore Sandal Gold.

 The ads were aired for a brief period of time and did not create any impact.

 Other marketing strategies being employed to market this soap include a scheme where the
distributors who meet the targeted sales could enter a lucky draw where they could win
silver or gold coins.

 All efforts to market this product has not paid rich dividends and the market share of Mysore
Sandal Soap is gradually diminishing.
 SWOT Analysis
Parameter Environmental Variable O/T Action S/W

Availability of Non-Availability of Raw Materials T  Increase Availability of Raw materials S

Product  Shortage of Sandalwood which
is the key for production.
Low Production Capacity
Low penetration in northern parts
of India
Functionality Scarcity of water for good bathing
experience
Ability to function in hard water and
soft water
by encouraging plantation of
Sandalwood trees.
 Procure sandalwood by bidding in the
open market
 Consider importing the Sandalwood
from other countries
T  Increase the number of production S
units across the state.
 Increase Production Capacity by use of
Technology
O  Market Product in less penetrated S
areas and increase the visibility
 Increase Distribution Network in such
areas
T  Increase availability of water W
O  Improve the ingredients so that the S
soap functions in both forms of water

Not suitable for daily use under T  Improve the ingredients so that the S
different weather conditions. soap can be used during all weathers.
 Manufacture different varieties for W
different weather conditions.

O/T – Opportunity/Threat ; S/W – Strength/ Weakness

 SWOT Analysis
Parameter Environmental Variable O/T Action S/W

Utility Of Product Availability of other foreign brands T  Reduce the availability of foreign W
(like Lux, Cinthol etc) which easily brands in the market
appeal to current youth.  Rebrand the product and market it to S
increase the visibility of the product to
the current youth.

Availability of substitute products T  Reduce Availability of Liquid soaps W

such as liquid soaps

Availability of other local and T  Reduce availability of other cheaper W

cheaper soaps soaps

Demand South India - Low Income and S  Product accepted as it a reputed brand S
Middle from Govt of Karnataka.
Income group families  Trusted Brand
Target huge youth and baby O  Company can provide the soap for S
segment in India Youth and Babies at a lesser cost due
to local production advantage.

Negative Propaganda T  Address the negative propaganda W

through campaigns.

O/T – Opportunity/Threat ; S/W – Strength/ Weakness


Parameter
Acceptance Of Product
O/T – Opportunity/Threat ; S/W – Strength/ Weakness
SWOT Analysis
Environmental Variable O/T Action S/W
Health Conscious Families O  Address the health consciousness by S
emphasizing on “natural” product
 Highlight the good effects of
Sandalwood on skin through
campaigns
Style consciousness among youth O  Market the product through ad’s S
endorsed by Style icons of the youth.
Swadeshi product, has a good O  Increase awareness in people about W
heritage background the product and its history
Low Income Group Families O  Use the low cost advantage to market S
it to lower income group families who
cannot afford other brands.
 Reach out to lower income group
through ads on regional channels and S
use local stars.
 Current Positioning
Marketing Effort : (Currently What marketing is trying to achieve)
Product Universe Attribute Competition Effort

Mysore Sandal (Normal) All Emotional Low Low

Health

Mysore Sandal Classic MIG, HIG Beauty Consciousness High High

Mysore Sandal Gold HIG Status High High

Beauty Consciousness

Mysore Sandal Baby MIG Health High High

Soap
 Possible Solution & Suggestions
 Mysore Sandal Soap is manufactured using the Sandalwood Oil extracts. The
product should be marketed highlighting the benefits of using the product made
more from natural sources. This will target lot of beauty conscious people.

 Increase the risk of using other products available in the market as most of them are
not from similar natural sources.

 Since Mysore sandal has a very strong back ground and history behind it, It should
cash in on these attributes to bring in a good awareness of the product legacy. This
can target middle age and above people.

 Presentation of the product needs to be enhanced and has to be made more
attractive with better cover designs and colors.

 Improve the distribution network and retail network to other parts of India. Start
with major cities in North and gradually penetrate to other two tier cities.
 Possible Solution & Suggestions
 Invest more in creating different sets of advertisement through reputed agency.

 Reach out to the masses through advertisements. Hire one of the style icons and
market the product.

 Market the product through regional channels and local stars to gain more mileage
from the product.

 Baby Soap to be marketed through campaigns and awareness programs as well as

Ads. Highlight the cost effectiveness and product from natural resources
 Possible Solution & Suggestions
Marketing Effort: Suggestions to change by adding additional attributes
Product Universe Attribute Competition Effort

Mysore Sandal Soap All Emotional Low Low

(Normal) Health
Swadeshi Campaign

Mysore Sandal Classic MIG,HIG Beauty Consciousness High High

Health (Natural Product)

Mysore Sandal Gold HIG Status Low Medium

Beauty Consciousness
Heritage Soap

Mysore Sandal Baby MIG Health Low Medium

Soap Cost
LUX a HUL Product
 HUL – Company Overview
 Hindustan Unilever Ltd. is a well-known and largest FMCG company in India. HUL has always revamped
its products to meet the changing needs of the consumer without compromising on the quality.
 HUL leads the market in the toilet soap category with 54.3% market share. Lux has inched up to be on
par with Lifebuoy in HUL's soaps portfolio. The Lux brand now has an almost equal market share as
Hindustan Lever's largest selling soap brand - Lifebuoy.
 Unilever is one of the world’s largest & leading MNCs in India. Unilever commenced their activities on a
large scale by setting up their first factory in Netherlands in the year1872.
 The usage of Unilever products by over 90% of people in Bangladesh stands a testimony to their
successful operation.
 The FMCG category is always a battleground for all the competing firms and the bathing soap category
is no different. With more firms entering the market, maintaining the customer base is not very easy.
Within six months, ITC's soap products have been able to capture 1.75% of the market share.
 Hindustan Unilever Limited (HUL), a 52%-owned subsidiary of Anglo-Dutch giant Unilever, has been
working its way into India since 1888. Formerly known as Hindustan Lever Limited. The Group's
principal activities are to manufacture and market consumer products. Hindustan Unilever Limited
(HUL), a subsidiary of Unilever, is a fast moving consumer goods (FMCG) company based in India. The
company focuses on efficient delivery to consumers with an improved supply chain, brand building
initiatives and innovation, which has helped the company to sustain its leadership position in the overall
FMCG category in India.
 LUX - Introduction
 LUX stands for promise of beauty & glamour as one of India’s most trusted personal care
brands.

 LUX soap was launched in India in 1929.

 LUX is the largest personal wash brand in the country with a value share of 15%.

 Three in every five Indian consumers enjoy the luxurious bathing pleasure of Lux during the
course of a year.

 It has been winning hearts of Indian consumers for last 80 years.

 It is considered as reliable & trustworthy.

 It ranks first in the list of India’s most trusted brands & the others are Colgate, RIN, Thumps
Up, Dettol, Fair & Lovely, Surf, Coca Cola, Pepsi, Horlicks in the order from second to tenth.
 LUX - Origin
LUX soap was launched in India in 1929. The name "Lux" was chosen as the Latin word for "light"
and because it was suggestive of "luxury.“
LUX soap was first launched in the UK in 1899 as a flaked version of Sunlight soap. Subsequently
it was launched in the US in 1916, and marketed as a laundry soap targeted specifically at
'delicates'. Lever Brothers encouraged women to home launder their clothes without fear of
satins and silks being turned yellow by harsh lye that were often used in soaps at the time.
The flake-type soap allowed the manufacturer some leeway from lye because it did not need
to be shaped into traditional cake-shaped loaves as other soaps were. The result was a
gentler soap that dissolved more readily and was advertised as suitable for home laundry
use. Lux is currently a product of Unilever.
LUX was first introduced as a toilet soap in 1925 in U.S.A. Produced by Lever Brothers, it arrived
in the UK in 1928, offering people a chance to pamper themselves for a modest price.
 SWOT Analysis
Parameter Environmental Variable O/T Action S/W

Availability of Replenishment time high in semi T Decrease the Replenishment by better S

Product urban & rural Area distribution network

Strong sales force and vast S  Increase in making the product S

penetration in the market available in all segments

Functionality Technological change makes the T  LUX should focus on technological W

existing products obsolete innovations like Body Wash.
Usage Rate /wear rate high S Customer education on usage of the soap S

Beauty soap targeted towards T  Should work on Unisex appeal S

women
W

O/T – Opportunity/Threat ; S/W – Strength/ Weakness

 SWOT Analysis
Parameter Environmental Variable O/T Action S/W

Utility Of Product Availability of other cheaper soaps T  Make the pricing competitive W

Availability of substitute products T  Reduce Availability of Liquid soaps W

such as liquid soaps

New entrants/local competitors/ T  Reduce availability of other products W

MNCs would increase the
competition
Demand Soap industry is growing by 10% in O  Strong market presence S
India
Large market share S  Strong hold over market S

Negative Propaganda T  Address the negative propaganda W

through campaigns.

O/T – Opportunity/Threat ; S/W – Strength/ Weakness

 SWOT Analysis
Parameter Environmental Variable O/T Action S/W

Acceptance Of Product Excessive dependence on beauty T  Try to make LUX not only as a beauty W
segment makes LUX vulnerable product.
to changing customer tastes

Controversial interpretations T  Look at all possible interpretation of S

of advertisement with Shah the message given by advertisement
resulting in loss of focus
Positioning as the “soap of the stars” O  Bring out advertisements which S
is not working well in rural area influence rural area also

Low Income Group Families O  Cannot target this segment and T

reduce the brand image of LUX

O/T – Opportunity/Threat ; S/W – Strength/ Weakness

 Situation Analysis
 Today, LUX is one of India’s Largest exporters of branded Fast Moving Consumer Goods. It
has been recognized by the Government of India as a Golden Super Star Trading House.

 Consumers are loyal to the product. The company should work increasing market share basis
loyalty.

 LUX is catering to variety seeking behavior by way of variants.

 LUX has created this image of beauty soap visually as well by the color of soap (white) and
emphasizing milk as the key ingredient.

 Currently Product Life Cycle Lux is in" maturity/decline" phase.

 Current Positioning
Marketing Effort : (Currently What marketing is trying to achieve)
Product Universe Attribute Competition Effort

Lux Women-All Age group Beauty Consciousness High High

Women-All Income Skin Consciousness
Group

Unique Attribute : Beauty Soap for Women

 Possible Solution & Suggestions
 LUX has to bring more than one uniqueness- by may be introducing a Lux-Men's variant

 Bring in a "macho quotient"  attribute to the LUX Men's soap to cater to youth as well as
other age group of men

 Re- energies the  "emotional " attribute of LUX Product by means of advertisement campaign
which has some retro content or history content in it (like from leela chitnis-praveen bhabi to
kareena etc.)

 LUX has high penetration in urban & semi-urban areas. However, it has only 19.8%
penetration in rural areas. Must increase distribution in rural area.

 The company should keep a close watch on the competition body wash product as it does
not take long to change peoples prospective.
 Possible Solution & Suggestion
Marketing Effort: Suggestions to change by adding additional attributes
Product Universe Attribute Competition Effort

Lux Women’s Soap Women-All Age group Beauty Consciousness Medium High
Women-All Income Skin Consciousness
Group Emotional

Lux Men’s Soap Men-All Age group Macho Quotient Medium Medium
Men-All Income Group