MARKETING MINI PROJECT

Lux Glossy Face Wash

Prepared By-
Indrajit Sarkar
PIMS-PGDM
Roll No - DM22F03

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 Contents
EXECUTIVE SUMMARY:.............................................................................................................................3
Introduction:.....................................................................................................................................................4
HUL:..................................................................................................................................................................4
Lux:............................................................................................................................................................... 4
Sales graph of Lux:.......................................................................................................................................5
Marketing Objective:.......................................................................................................................................5
Sale Forecasting................................................................................................................................................5
Marketing Analysis..........................................................................................................................................6
Swot Analysis:...............................................................................................................................................6
Market share of Lux in FMCG Sector:......................................................................................................7
Market Trend:..............................................................................................................................................7
Competitors analysis:...................................................................................................................................8
Research Methodology:................................................................................................................................8
Segment, Target & Positioning:......................................................................................................................8
Sales Distribution Plan:...................................................................................................................................9
Marketing Mix:................................................................................................................................................9
Porter’s 5 Forces:...........................................................................................................................................10
PESTEL:.........................................................................................................................................................11
BCG Matrix:...............................................................................................................................................13
Marketing Plane.............................................................................................................................................14
Monitoring, Evaluation and Review of the plan:.........................................................................................15

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EXECUTIVE SUMMARY:
We were given the task of researching the industry and creating a marketing strategy using
in-depth analysis. India, home to 1.40 billion people (according to 2021 senses), is experiencing a
growing population and expanding consumer demand, both of which are assisting the industry's
expansion at a pace of 14.9% CAGR (according to IBEF) for the years 2020–21. Every household
brand's name, HUL, has increased at 8% CAGR over the past 10 years.

I've chosen a new item from the Personal care category by the name of Lux for my
assignment. HUL's Personal care segment is expanding at a 28% annual rate (margin).

"Lux Glossy," vitamin C face wash will launch under the Lux brand, expects to generate Rs
170 crore in revenue in 2022–2023, with a net profit of Rs 51crore (30% of sales) and total expenses
of Rs 119 crore. Face Wash, now has a market share of Rs. 1300 crore.

The suggested price for the Lux Glossy is Rs 232 for a 100gm packet and Rs 476 for a
250gm packet. The fundamental concept of the new product and new marketing strategy is to offer
more glowing face with a high concentration of "Face Protection" material, protect face from
pollution, UV ray and make the face glossier and more attractive through the powerful HUL
distribution channels.

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Introduction:

HUL:
With its headquarters in Mumbai, India, Hindustan Unilever Limited (HUL) is an Indian
consumer goods corporation. Hindustan Vanaspati Manufacturing Company, Unilever's first Indian
affiliate, was founded in 1931. Lever Brothers Limited and United Traders Limited were then
established in 1933. (1935). In November 1956, these three businesses merged to establish HUL.
Additionally, it is a division of the British-Dutch multinational Unilever.

Sanjiv Mehta is the company's current CEO. And the company's sales for 2019–20 is
expected to be INR 2207 crore (PAT). It deals in meals & refreshment, home care, beauty &
personal care, and life essentials. The company's objective is to expand its business while having a
beneficial social impact. Their mission is to add "Vitality to life" through daily nourishment,
cleanliness, and personal care.

Lux:

Launched in 1925, Lux is a global company with a line of goods that includes the celebrity-
endorsed shampoos, conditioners, shower gels, bath additives, and beauty soaps from Elizabeth
Taylor, Audrey Hepburn, Marilyn Monroe, Aishwarya Rai, Katrina Kaif etc. There are more than
100 nations where the product is sold.

Every woman in the globe has had access to the best beauty since 1925 through Lux, along
with the pleasure that comes with it. Our seductive beauty treats are enjoyed by women in more than
100 countries every day. They are made to resemble the priciest French soap and are known as the
beauty secret of some of the most glamorous stars, including Elizabeth Taylor, Audrey Hepburn,
Marilyn Monroe, Ashwarya Rai, Katrina Kaif.

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Sales graph of Lux:

Series 1
400

350 341.39

300
273.37

250

200

150
126.01
101.31
100 79.32

50

Marketing Objective:
Lux's marketing goal for its new product, "Lux Glossy”, is to generate Rs 170 crore in
revenue for the fiscal year 2022–2023, with a net profit of Rs 51 crore (30% of sales), and to incur
total costs of Rs 119 crore. In the industry of Consumable Personal Care, where the total market is
worth Rs. 1300 crore, Lux brand has a 14.5% overall market share in the personal care segment.

The company looking for to brand extension to boost the revenue of Lux. Company is also
looking for repositioning the brand value. Company is targeting to reach 16-18% market share within
a year.

At the introduction level the company will burn cash to cut the competition and penetrate in the
market.

Sale Forecasting

Target for selling units:

Company is targeting to generate 170 crore revenue.

So, company is set target to sale approximately 51,00,000 units of 100g pack and 11,00,000
units of 250 gm pack to reach the revenue target.

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Marketing Analysis
Swot Analysis:
The industry for personal care is extremely competitive as a result of the neck-and-neck
competition between numerous competitors with their potent brands. Brands like Himalay Neem
Beaty, Garnier bright, and Nivea purifying are fighting Lux extremely hard. Lux, one of the market
leader, has had negative growth in recent years as a result of its expensive products and weak
marketing when compared to rivals. Lux (HUL) has a significant global presence, is still the
household favourite, had a large base of devoted customers, and its brand positioning approach
contributes to solid revenue growth.

As the market's new "Lux Glossy" product is expected to be a game changer, it will
eventually boost Lux's market share and bring about positive growth with its new varieties, new
ingredients. Recent changes in people's behaviour have been carefully examined, and a new
marketing strategy with powerful distributors will pave the way for success in the years to come.

Strength Weaknesses Opportunities Threats

Strong Global Not Unisex Growth of In House

Brand Appeal Personal Care Competition
Large Share Less Industry Intense
Market Petetration in Demand of Copmpetition
Good Rural Market Body Wash Demand
Distribution Controversies New Trends shifting
Brand Offers and towards
extentsion Schemes Liquide soap
Strong Support Expand into
of Unilever Rural Market
Brand
Ambassadors

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Market share of Lux in FMCG Sector:

Here we can see that market leader of face wash is Garnier, followed by Himalaya and Nivea. Lux is
targeting to capture almost equal to ponds’ share in the market in upcoming three years.

Market Trend:

From the above data shows that the personal care market is growing in a continuous manner.
In year of 2020 and 2021 the growth was stagnant due to Covid-19 pandemic. But we can see that in
this year, personal care product market is growing at 8.34% rate.

This report is also projected that in the upcome years the personal care product market will
grow due increasing economic growth.

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Competitors analysis:

Subject Himalaya purifying Garnier Bright Nivea Purifying

Neem
Price(100gm) 119 158 103

Type Herbal Chemical Chemical

Form Foam Cream, Serum Gel

Material features Antibacterial Natural Oil Free

Applied for Anti-acne & Pimples Skin Brightening Nourishment &

Moisturization, Deep
Cleansing

Target market Youth suffering from Oily skin Dull and dry skin
skin problem(acne)

Research Methodology:

Primary Research: We conducted a questionnaire survey of 20 respondents for the

marketing strategy of Lux's new product, "Lux Glossy," from diverse geographical places, different
genders, different age groups, and different domains. Additionally, the initiative uses the information
gathered by the responders for improved comprehension and analysis.

Secondary Research: For the marketing strategy of Lux's newest product, "Lux Glossy"
yearly reports from HUL, journals, blogs, news articles, and other secondary data published on
various websites were studied.

Segment, Target & Positioning:

Segment:

 Geographic: Urban and Semi Urban

 Demographic: Gender- Female
Income- Upper-Middle Class
Age group- 16-35 years
 Behavioural: Independ-Ambitious

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  Psychographic: Appreciates beauty and glamour with affordable price

Target:

Lux targeting the upper-middle-class young woman customers who will trustworthy and
Reliable towards the brand.

Positioning:

The company is going to positioning their face wash as a product of Super Stars. Propose
tagline for the product is “Bring out your Star look”, “Need to become Star”.

Sales Distribution Plan:

Sales
10%
Main target market for the company is Urban Market.
Company wants to generate 60% of the total income
from urban areas. Their targeted market is suitable for
30% urban market. Rest 40% income is divided in 30% and
60%
10% in tier 2 and tier 3 cities respectively.

Tier 1 Tier 2 Tier 3

Marketing Mix:
Product:

 Item Form: Gel

 Material Feature: Natural (Olive oil extract, Jojoba oil, Lemon extract, Argan oil, Tea tree
oil)
 Applied for: Skin Brightening
 Package: Tube
 Content: Vitamin C
 Skin Type : All

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 Price:

 B2B: 100g- Rs 195 / 250g- Rs 390

 D2C: 100g- Rs 230 / 250g- Rs 480

Place:

 Modern Trade
 Company’s website
 E-Commerce
 Medical Store
 General Trade

Promotion:

 Social Media marketing

 Sponsorship (Fashion shows)
 You Tube advertisement
 OTT promotion

Porter’s 5 Forces:
Threats of new entry:

 Low time and cost of entry

 Neutral Specialist Knowledge
 High Economies of Scale
 Many Cost advantages
 Little Technology Protection
 Few barriers to entry

Competitive Rivalry:

 Many Numbers of competitors

 Small Quality difference
 Few other difference
 Low Switch cost
 Low Customer Loyalty

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Supplier Power:

 Many numbers of Suppliers

 Small size of suppliers
 Neutral Uniqueness of service
 Good ability to substitute
 Low cost of changing

Threats:

 Good performance of substitute

 Low cost of changing

Buyer Power:

 Many numbers of buyers

 Small size of order value
 Small difference between competitors
 High price sensitivity
 Good ability to substitute
 Low cost of changing

PESTEL:

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BCG Matrix:

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 As here we are going to lunch a new product named “Lux Glossy”, for this particular product
company has no market share right now. But the market growth rate is high for the particular product
as earlier said. So according to the BCG graph the product is fitted in Question mark category as it
has low market share and high market growth. This product has good potential to move to Star and
then Cash Cow.

In the “Product Life Cycle” the product is fall under introduction category. In this stage
company has to burn cash to move the product in growth (Star) stage.

Marketing Plane
Company has designed a road map for marketing strategy for this product. Company select some
channels for advertise this face wash. Those are:

 TV Advertise: As we know the Lux has contracted with some famous actress in Bollywood
industry. Company will use them for influence the customers.
 Social Media Campaigns: HUL will collaborate some social media influencer to run heavy
campaigns on social media like Instagram, FB
 Online Adds: in present days you-tube is a very important tools for advertise of any product.
Company will sponsor to some content creating branding their product.
 Physical Campaigns: Company will run physical campaigns in Malls, Private Universities,
and IT parks in big cities.

Budget:

For this marketing strategy the company will burn a lots of cash. Approximately the company
will expense as follows:

o TV Advertise: 15cr
o Social Media: 2.5cr
o Online Adds: 1.5cr
o Physical Campaigns: 3cr

Total expenses is going to 22 crores.

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Monitoring, Evaluation and Review of the plan:

Weekly checks will be made to ensure proper implementation, and quarterly reviews will include
course-correction plans. The indicators to be used included: analysis of the brand's sales and market
share, performance of the industry and competitors, analysis of marketing costs, and customer
reaction to new Lux campaigns.

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