Marketing Project Report on Lux Soap By: Amit Kumar Sinha PGDMRM-002 IPE, Hyderabad

Contents: Company Profile HUL Distibution Channel - HUL Product Mix HUL Overview 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 MCG company Touching 2 out of 3 Indian consumer 20 distinct categories Home and personal care products, food and beverages. HLL HUL 100 factories India Manufact uring its diverse product range Headquarter: Mumbai Market share Toilet soap cat egory 54.3%

Revenue Percentage:

Distribution Channel - HUL

Distribution Channel - HUL 2000+ Suppliers and associates 4000 Redistribution stockists tail outlets Reaching 250 million rural consumers

Covering 1 million re

Product Mix- HUL

The width of the HUL Product mix: E.g: The width of the product mix refers to the number of different product line the company carries Personal wash Laundry Skin care ealth care Oral care Deodorants Colour cosmetics Ayurvedic personal and

Shampoo Tea Coffee

Foods

Ice cream Width = 12

The lenght of the HUL Product of the product mix refers to the total mix: nght

The Le

number of items in the product mix. E.g: Personal wash: Lux, Lifebuoy, Liril, Ha mam, Breeze, Dove, Pears, Rexona Laundry: Surf excel, Rin, Wheel Skin care: Fair & Lovely, Ponds, Vaseline, Aviance Oral care: Pepsodent, Close up Deodorants: A xe, Rexona Colour cosmetics: Lakme Ayurvedic personal and health care: Ayush

Shampoo: Sunsilk, Clinic Tea: Broke bond, Lipton. Kwality walls Width = 30

Coffee: Bru

Foods: Kissan, Annapurna, Knorr

Ice cream:

The depth of the product mix refers to the number of variants of each product of fered 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 Depth of the HUL Product mix: The Consistency of the HUL Product mix: The consistency of the product mix refers to how closely related the various pro duct lines are in the use, production requirement, distribution channel or in an y other manner. HUL Product line are not consistent because of its large width.

Overview : Lux Soap 1916 Laundry soap 1925 Bathroom soap India 1929 t share is almost equal to Lifebuoy

First brand ambassador: Leela Chitnis (1929)

Mark

Marketing Mix:

Product: Product Classification: Tangible e category of convenience good.

Non durable good

Lux and other soaps fall into th

Product Life Cycle: Maturity Stage

Prominent Variants: Lux Lux Lux Lux Lux Lux Lux Lux Lux Lux almond orchid fruit saffron san ose international chocolate aromatic extracts oil and honey glow etc.

Logo: Labelling: Lux trade character or logo is present prominently in the package Female model D isplayed graphically Key ingredients

Packaging: Different colors Different variants( Saffron Saffron variants & Pink Rose extrac ts 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 retail outlets Direct coverage in over 1 million

Network: Factory Company warehouses Distributor Market (Bulk orders) 30% Sales

Factory Wholesaler & Big retailer

Active since 1929 Promotion:

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:

1970 Jayalalitha Shriya Sharan South India:

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 S cratch 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 are a.) Many variants (Almond oil, Orchid extracts, Milk cream, Fruit extracts, Saff ron sandalwood oil and Honey) Strong sales and distribution network backed by HU L Strong brand image

Dynamically continuous innovations New variants and innovative promotions (22 ca rat gold coin promotion Chance Hai) Strong brand promotion but relatively lower pr ices 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 v ariation 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 s tage threat of slipping down to decline stage if constant reinvention is not car ried 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% M arket share Brands: Cinthol, Fairglow, Nikhar

Wipro: Brand: Santoor (No 1 in AP) and Chandrika ITC: 1.75% growth in initial fiv e 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 Are a: 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 O ffering product in a different way Offering improved quality of the product affo rdable 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 com www.fmcg.com

www.hul.com

www.google.com

www.wikipedia.com

www.mbaparadise.

Questions???