PRODUCT LIFE CYCLE:

Product life cycle refers to the series of stages in which a product sales revenue and profit
increase or is presented. It describes the stages a new product goes through in the market
place. Its the life of a product. Just like in human growth there are stages involved in the
growth of a product.
Firms must be able to launch, modify, and delete products and characteristics to ensure a
profitable product life. The product lifecycle is influenced by market demand. Mangers of a
business should know what stage a product is in and the one it is likely to be moving to. This
is so as to be able to devise a marketing program benefiting the product sales.
There are about four main stages in the development of a product. These stages are:
Introduction
Growth
Maturity
Decline
It can be shown in the following normal curve-

Maturity
Customer
Demand/
Sales

Decline
Growth
Discontinue

Introduction
Time

Stages in a Product's Life Cycle

Figure 1: Normal Curve of Product Life Cycle

Sometimes many products often do not undergo every stage of the product life cycle. A new
product may enter the decline stage quickly after its introduction without even reaching the
maturity stage. For example, Mini Disc players entered the market in the early 1990s, gained
popularity in the mid 1990s especially in Japan, but then quickly disappeared from the
market before reaching its maturity stage. The main reason for its abrupt decline was
technological advance and shift in market trends, as more convenient MP3 players were
introduced

and

people

quickly

moved

away

from

Mini

Disc

players.

Practically it is little bit difficult to tell in which stage a product is currently running. Product
life cycle function is a relation between time and sales, and none of these variables is
definite. The time that a product spends at each stage varies among products, and the
length of the life cycle varies as well. Also, fluctuations in product sales which are usual in
the market make it hard for companies to determine the current stage of the product. If sales
reach its peak and then decline, managers may mistake it for a sign that the product has
reached its decline stage, even when the decline of sales in reality was only temporary.
However, here we will try to discuss particularly on the Product Life Cycle of LUX Beauty
Soap of Unilever including current stage identification and possible ways to extend the life of
this product.
Prior that let us have a look on the company information and their marketing strategy for this
product.
UNILEVER AT A GLANCE:
Unilever is a multinational consumer product manufacturing giant operating in over hundred
countries all around the globe. Unilever Bangladesh is the Bangladesh chapter of Unilever,
where the company holds 60.75% share whereas the Government of Peoples Republic of
Bangladesh holds 39.25% share.
Unilevers one of the most popular brand is LUX. They segments LUX.s market according to
geographical locations. It further differentiates these segments into Socio Economic Cluster
(SEC) which takes into account the criteria of education and profession which ultimately
measures the financial ability of consumers. The cluster is divided into five parts starting
from A to E. Unilever targets the urban and sub urban upper middle class and middle class
segment of the population, who falls under A to C of SEC.

Tactical marketing tools, 4Ps, are extensively used by the company to market LUX. Though
LUX is produced in Bangladesh, Unilever Bangladesh maintains the same standard all
around the globe. The product is available in six different fragrances under three different
sizes. Since the demand for beauty soap market is to a great extent oligopolistic, variations
in price lead to price war which can eventually break down the companys market share.
Thus Unilever cannot provide a better price than its competitors. But the price is affordable
by most of the people. Unilever Bangladesh has outsourced its distribution channels to third
party distributors which allow them to distribute LUX in massive bulks amounting to around
ten million pieces. It undertakes the largest promotional activities in the beauty soap industry.
The beauty soap industry has a few major producers of which Unilever holds market share
of slightly less than 50%. Other competing brands like Tibbet, Meril, Aromatic and Keya have
started to have a strong consumer base, but LUX.s product features distribution and
promotional activities have created high brand loyalty for which it is still the market leader.
Unilever, with the aid of its heavy promotional activities, has been able to penetrate the
market. But the other producers in the industry are posing a threat towards Unilevers market
share as they have moved towards the rural masses of the population. Therefore, Unilever
Bangladesh should undertake further steps such as moving towards the rural and/or poorer
segment; attract children (by making a special product for kids) and other innovative
promotional activities to retain its command in the industry.
MARKET SHARE:
The beauty soap industry in Bangladesh consists of only seven major producers. Unilever
Bangladesh Ltd is operating in the industry with its world famous brand LUX. Out of these
giant companies Unilever Bangladesh Ltd is the market leader with a share of around 43%.

Figure 2: Market Share

The Figure 2 shows the market share of all the companies in the sector. Unilever
Bangladesh Ltd is leading the market. The other competitors are very competitive among
themselves but they cannot put a intense competition with Unilever Bangladesh Ltd, as they
have market share much less than Unilever Bangladesh Ltd.
Unilever Bangladesh Ltd. is the market leader with more than 43 percent of the yearly
market share of toilet soap and 60 percent of the laundry soap and detergent market. The
below table shows the estimated combined market share of the total toiletries market of
major five firms.
Sl. No.

Name of Firm

Market share 2012

Unilever (BD) Ltd.

43%

Kohinoor Chemicals Co. Ltd.

10%

Square Toiletries Ltd.

10%

ACI (Cosmetic) including Colgate

5%

Keya Cosmetic Ltd.

5%

Table for major player in Bangladesh for this sector

Other companies in the industry are not as big as Unilever Bangladesh Ltd but they are
posing threat to the company by a tendency of a gradual increase in their market share.
Kohinoor Chemicals which is operating with the brand name Tibet is an extremely famous
brand to the rural segment of the population and possess a significant share in that segment
which is the largest population group in Bangladesh. Moreover Square Toiletries Limited
operating their brand Meril, Keya Cosmetics Ltd operating with the brand name Keya and
Marks & Allys Ltd operating with the brand name Aromatic are also uprising brands to both
the rural and sub urban segment of the population.
PROMOTION:
Unilever Bangladesh undertakes huge promotional activities to promote LUX which has
topped the beauty soap industry of Bangladesh. It spends almost 20% to 25% of its Net
Proceeds from Sales (NPC) of LUX for promotional activities for LUX
Its certain annual promotional campaigns like LUX Channel i Superstar and LUX
Channel i Annual Cinema Awards has made the product a part of the glamour world. Since
the 1930s, over 400 of the worlds most stunning and sensuous women have been proudly
associated with Lux advertisements. They do not only promote LUX in Bangladesh for the
beauty conscious females, it also promotes the brand for males and the company proved
that, by including world famous male celebrity Shahrukh Khan for their advertising campaign.
Unilever Bangladesh Ltd spends a huge amount of money for promoting LUX through TV
commercials, newspaper advertisements and billboards. Moreover it also undertakes small
promotional campaigns at different schools, colleges, universities and recreational parks with
winners of its Zonal Beauty Contests. Till now promotional activities of LUX has always been
successful which has made it a household common name and helped it reach almost one
billion taka sale value in the year 2004
Lux has always had the most beautiful women in the film industry endorsing the brands. If
we see internationally, there have been Marilyn Monroe, Sophia Loren, Raquel Welch,
Cheryl Ladd, Demi Moore, Brigitte Bargot, Natalie Wood, Sandra Dee, Diana Rig, Samantha
Eggar, Sarah Jessica Parker, Catherine Zeta Jones, etc. If we see in India, then the first print
ad of Lux came starring Leela Chitnis. After that there have been a string of leading ladies
Madhubala, Nargis, Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira
Banu, Hema Malini, Zeenat Aman, Juhi Chawla, Madhuri Dixit, Sridevi, Ashwarya Rai,
Karishma Kapoor, Kareena Kapoor, Babita, Priyanka Chopra, Katrina Kaif, Mahima
Choudhry, etc. In fact, Lux would be perhaps the only womens beauty soap brand which
has had male models endorsing it.

SUBSTITUTION OF BEAUTY SOAP:

Recently there is a huge innovation work with a lot of research and development has been
carried out. Considering the user convenience and their demand soap bar is replacing by
liquid body wash and shower gel to some extent. Though this is still in within the upper class
people of the society but however it is getting a upward trend and hoping it will be a popular
item to all common people near future.
To know the trend of this body wash we may go through the following comparative analysis
in terms of convenience and advantages.

BAR SOAP VERSUS BODY WASH:

When it comes to deciding bar soap or body wash, the first thing we have to consider that is
competitive advantages of one over another.
The Benefits of Beauty/Bar Soap
Beauty soap has a nice creamy feel between the hands, almost a sensual feel when
lathering the soap up to a rich lather. It feels relaxing to rub the bar along the skin, almost as
in a form of massage, as you knead the soap in circular movements along your arms or legs.
Bar soap has been around for a long time, since the Babylonian days of 2200 BC when they
used a combination of cassia oil and alkali to form a sop like substance in a clay tablet. In
the 19th century it was promoted to the masses that the link between health and cleanliness
was all too evident, and by the 1950's bar soap became a part of our daily hygiene regime.
The use of perfumes and moisturizers began to be added to the soap to make it less basic,
and more appealing to the consumer, First bar soaps produced were more carbolic and
medicated. Manufacturers initially felt that hygiene and disinfectant type soaps were the
correct way to go. Nowadays the more scented and moisturized the bars, the quality is
better.
It's more about beauty and health these days, as opposed to harsh coal tar soaps and
carbolic. There are also unperfumed ranges of soap for the sensitive skin, and all manners in
between. The Dove range contains the most beautiful perfume, and is extremely
moisturizing, it lathers up to a rich soapy lather which makes for a very luxurious wash. So in

a way to use the tablet form of soap for the creamy lather it produces. On the down side, bar
soap can be extremely drying to the skin and your delicate facial skin.
The Benefits of Body Wash
Body wash is soap that is encased within a container. It usually has a pump down action to
release the liquid soap, or a squeeze to release action. You will find these great when you
are in the bath or shower simply because of their convenience. With a bar soap it can slip
and slide all over the place, sometimes ending up deep within the bath water, never to be
seen again! And when you do eventually manage to find it is much reduced in size and it
very sludgy and slimy. Sometimes it actually leaps out of the bath, and you can spend your
supposedly relaxing bath time experience retrieving the soap. Bar soap is an elusive devil
when dropped in the bath water, and not practical at all.
Body wash and shower gel are hygienic and re-sealable. If they are dropped in the bath,
they just float, and with no loss to the liquid soap inside. They are contained so that no
harmful bacteria can settle, unlike soap which is left standing uncovered. Body wash is also
extremely moisturizing and beautifully perfumed. Essential oils are used in quite a lot of
these products, which have very therapeutic qualities, and they also leave a wonderful
perfume on the skin. You will like the feel of the liquid wash, and the abundant lather it
produces also. Moisturizing properties within our body wash are all important, as our skin
needs to be cared for and fed. It's easier to contain these ingredients within a liquid wash as
opposed to a bar of soap.

Our Skin
From day one skin needs to be cared for. A baby will have it's skin moisturized after it's bath.
We need to protect and nourish our skin all through our lives. As we age we will lose our vital
moistures and collagen's. The skin loses it's ability to retain water, it loses elasticity, and
wrinkles form. To slow this process down, we have to give back the much needed moisture
to our thirsty skin. We must put back what we can due to the environmental damage, and
ions in the atmosphere causing negative and harmful effects to the skin. If we look after our
skin now, we can delay the signs of aging caused by UV rays and free radicals. To nourish,
and protect our skin now is an vital investment in our skins future.

So when asking about Body Wash or Bar Soap? You would definitely have to go with the
liquid body wash for it's convenience, hygienic aspect and the sheer enjoyment of using it.

The production figures of major toiletries firms over a five-year period suggest that all the
major firms have experienced steady growth.
Considering the above analysis, Lux beauty bar can be regarded to be in the MATURITY
STAGE of its life cycle. But still it will retain the current position for next few decades since it
is an essential and frequent using commodity. Though the upper class is switching to liquid
body wash but there is a huge people in the middle class and lower middle class where this
soap bar is a very popular item for daily washing, bathing, cleaning.

WAY TO EXTEND THE LIFE OF THIS PRODUCT:

Proper communication in terms of product promotion among the mass people
especially the semi urban and rural customers
Value addition on the products in terms of quality, performance and durability
Introducing new flavors, color and shape according the customer expectation
Sufficient Research work should be done so that the bar soap could be use as a
protective care from various germs and infection rather than only cleansing and
beautification.

REFERENCE:
1. Bangladesh Enterprise Institute
2. www.unilever.com
3. www.en.wikipedia.org/wiki/Unilever
4. European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 4, No.12, 2012

Assignment
on

Product Life Cycle

Course Title: Production and Operation
Management (POM)

Submitted to:
Mr. A N M Shahidullah
Course Coordinator- Production and Operation Management

Submitted by:
Md. Zakir Hossain
Roll Number PGDIM021
Post Graduate Diploma in Industrial Management

Date: May 2, 2013