1 Marketing Management

Marketing Management
BS Business Administration
Assignment 2

Name:
Zohaib Ahmad
Registration #:
191360233
Section:
A (MKT-305)

INSTRUCTOR
SIR ANAS ZIA

Part 1:.....................................................................................................................................................

Lecturer: Anas Zia

2 Marketing Management

Table of Contents
Untapped Segment:.....................................................................................
Mission:......................................................................................................
Vision:.........................................................................................................
Executive Summary:...................................................................................
Situation Analysis:...................................................................................
Market Strategies:....................................................................................
Market Tactics:........................................................................................
Financial Projections :..............................................................................
Implementation Controls:........................................................................

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 3 Marketing Management

Selected Brand: LUX

Untapped Segment
LUX produces cosmetics for women, but if they expand their product line to
include goods for men and children, they may reach a wider audience. Also LUX
is not making anti-bacterial soaps and sanitizers.
Vision
The LUX vision is to make ecologically sustainable life the default mode of
operation. For our company's long-term success, we believe that this is the most
effective long-term plan available. A considerable emphasis is placed on
sustainability in this vision statement, especially among consumers as a whole.
Mission
The LUX Brand's mission is to "enhance the vibrancy of life via the development
of creative goods. All of these areas of daily life diet, hygiene, and personal care
are key considerations, and we seek to meet these needs by developing solutions
that help people feel better, look better, and get more out of their lives. Following
this purpose statement, the organization strives to give complete customer pleasure
in a range of areas that consumers encounter on a daily basis, including shopping,
travel and several other activities.
Executive Summary

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 4 Marketing Management

LUX should take more initiatives, such as expanding its reach into rural and
impoverished areas, attracting children by developing a unique product just for
them, and engaging in other creative promotional activities, in order to maintain its
leadership position in the business. Also LUX is making beauty products for
women however if they make products for men and children they can target more
public and make more profit. LUX has been able to enter the market as a result of
its extensive promotional efforts; nevertheless, the other companies in the business
are presenting a danger to LUX's market share as they have shifted their focus to
the rural masses of the people.

Situation Analysis
SWOT analysis of LUX looks at the brand's advantages, drawbacks, opportunities,
and threats, as well as its strengths and weaknesses. LUX SWOT Analysis takes
into account both internal and external aspects, such as strengths and weaknesses,
as well as opportunities and threats to the organization. By using the SWOT
Analysis management framework, LUX may compare its firm and performance to
those of its competitors. The SWOT Analysis management framework is a time-
tested management approach. Within the fast-moving consumer goods (FMCG)
market, LUX is one of the most well-known names in the business.
Strengths
In LUX's SWOT analysis, the following strengths were found as being beneficial:
 Market research is quite significant.
 There are a variety of options available (Almond oil, Orchid extracts, Milk
cream, Fruit extracts, Saffron sandalwood oil and Honey)
 Innovative marketing and new variants of existing products are examples of
dynamically continuous innovation.
 The combination of effective brand promotion and competitive price is a
successful combination.
 The LUX brand is available in more than 100 countries across the globe.
Weaknesses

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There were many faults highlighted in the LUX SWOT Analysis, which are as
follows:
 As a beauty soap for ladies, it does not have general appeal since it is
predominantly marketed towards women.
 There were certain varieties that did not do well on the market, such as
sunscreen and international variants.
 It is not well recognized outside of urban areas.

Opportunities
Listed below are some of the prospects found by LUX's SWOT analysis:
 The Indian soap industry is growing at a pace of ten percent per year,
according to the World Bank.
 LUX should produce other varieties of liquid body wash in the near future,
since there is significant expansion potential for this product category right
now.
 The brand is running only beauty products and also for women only through
which we can add anti-bacterial soaps and beauty products for men also to
the brand because LUX has targeted all the women for their marketing.
Threats
According to LUX's SWOT analysis, the following are its main threats:
 The external rivalry in the Pears – Beauty area is fierce.
 New players in this market sector
 The potential of falling into the time of recession exists during the third
maturity stage if ongoing innovation is not undertaken.
Market Strategies
LUX employs 360-degree advertising message, including print media, television
commercials, and web advertisements, among other methods, as part of their
comprehensive marketing mix approach. As a soap, it has always positioned itself
as something that has a pleasant aroma and leaves one with a lovely and glamorous
appearance. The Marketing Strategy of LUX is based on Production concept. The

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 6 Marketing Management

production idea is a subset of marketing principles in which you concentrate on

manufacturing goods and services in a way that makes them widely available and
inexpensive to your customers. Because LUX also make their products and goods
in a way that makes them easily accessible and affordable to their consumers.
LUX is working to improve its operations and logistics in order to lower their
overall cost per unit and make their products more accessible to their clients.
Segmentation
Market Segmentation is the division of a diverse market into similar sub units.
When it comes to product division, it refers to the process of identifying segments
of a market that are distinct from one another. It is a critical key strategy in foreign
markets since the primary distinction between referring to a company as
international or global is dependent on the scope and segmentation grounds used to
define the organization. In contrast to LUX, which focuses only on cosmetics, its
competitors, such as Lifebuoy and others, specialize in antibacterial soaps,
shampoos, and conditioners to name a few products. And also LUX is giving
services to Women beauty only but if we see the unwanted segment this can also
be a chunk that can be a factor.
Targeting
Our marketing strategies and methods are developed after our product has been
completed in order to reach the broadest possible audience for it. We begin with
celebrities that are well-known and who have a significant fan base in compared to
the rest of the pool of potential presidential candidates. Following the identification
of the celebrity, the next step is to choose a platform for advertising, such as
Facebook, YouTube, or another comparable site. After this is completed, the
process is repeated. The key is to choose a platform that is widely used and to run
the advertising on that platform so that when the general public learns that the
LUX brand is now producing anti-bacterial and men's beauty products, the general
public will be automatically targeted as a result of the new products.
Marketing Tactics
An assortment of strategic strategies or activities used to increase awareness of a
company's products or services are referred to as marketing tactics. Promotional
actions, also known as marketing choices, are strategic decisions that are taken to

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 7 Marketing Management

drive the promotion of a product or service in order to achieve certain marketing

goals.
8P’s
LUX's Marketing Strategy examines the brand in the context of the marketing mix
framework, which includes the 8Ps (product, price, place, promotion, people,
positioning, processes, and performance). There are many different marketing
tactics, such as product innovation, price strategy, and promotion planning, to
name a few. These business methods, which are based on the LUX marketing mix,
aid in the success of the brand and the newly launched product. In turn, this assists
the brand/company in establishing a competitive position in the market and
achieving its business goals and objectives.
Product
In addition to its global recognition, LUX is a well-established personal care and
skincare brand for women with a presence in more than 100 countries. The soap
business LUX focuses on beauty soaps, but it should also provide anti-germ soaps
as a complementary product. Aside from that, this brand is mostly targeted towards
female consumers rather than male or children consumers. It should either be
unisex or made for both men and women, depending on the situation. Now LUX
will launch an anti-germs soaps and sanitizers also. Besides this LUX will also
make beauty products for men also so that they may target both sex in the market.
Positioning
Positioning is critical because it impacts how buyers view your product. LUX’s
Anti-Bacterial soaps that are quite refreshing than the soaps of their competitors.
Customers may enjoy a pleasant scent while also enhancing their appearance and
feeling stylish thanks to LUX soap. According to the brand's motto, LUX is
positioned as a company that offers items that bring out the most in people's
natural attractiveness. In line with its moniker, LUX is seen as an aspirational
brand aimed squarely at the middle-class market.

Pricing
LUX is a product that appeals to people in the middle class and targets a big
number of potential buyers at the same time. LUX is a very cost-effective soap that

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 8 Marketing Management

is positioned as a cheap soap for everyone. The price of the soap varies depending
on the SKU and ranges from Rs 5 to Rs 40. For LUX, being a cost leader is
essential, and the company can implement a price strategy as part of its marketing
mix in order to compete with other competitors and thrive in the market. This is
further enhanced by the fact that the company is a mass manufacturer, which has
resulted in the achievement of economies of scale. Due to LUX's first-mover
advantage, the company has risen to become the market leader in five different
nations. This is how the price plan of LUX soaps will allow the brand to maintain
its position as the market leader in the next years. LUX prices its new items or
versions in consideration of the customer's buying capacity, and as a result, the
brand always guarantees that its products are within reach of the average
consumer.
People
In contrast to many other firms, the positioning of LUX has remained mostly
unchanged throughout time; the company's target demographic has remained
primarily comprised of young ladies. LUX's marketing message is communicated
via celebrity endorsements, according to the company. The primary target audience
for LUX sunscreen is the female members of the household. This is mostly due to
the fact that in our nation, the purchasing choice for connivance products is made
by the women of the family, who are predominantly concerned with beauty and
complexity.
Performance
LUX conducts lead purchaser research on a regular basis in order to deconstruct
and document the impact of brand development exercises on the overall business
outcomes for the company's items. After launching the product the company aims
to enhance awareness of the disparities that exist between men and women. In
addition, by encouraging males to participate in the experience of casual sexism
that women endure in their daily lives, we want to bring attention to the issue of
casual sexism.
Place
LUX has a massive distribution network, with more than 1.3 million outlets. This
demonstrates the strength of the company. With a distributor delivering to a
wholesaler, who in turn provides the retailer, LUX follows the traditional

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 9 Marketing Management

distribution channel structure. The retailer will make the delivery of the product to
the customer on his or her behalf. Alternatively, a third-party firm that collaborates
with Unilever will be responsible for managing the distribution process. Products
from these suppliers will be distributed to retailers across the United States. There
are more than 71 manufacturing sites spread across the world, and the products are
available in nearly 100 countries worldwide. LUX products are readily accessible
and take up a significant amount of shelf space in retail establishments. A wide
variety of LUX cosmetics may be purchased practically everywhere, whether in
large retail stores or small super stores. LUX things are becoming more popular on
the internet, owing to the increasing frequency of online shopping.
Promotion
LUX has always positioned itself as a soap that has a pleasant aroma and provides
the user with a pleasant sensation after using it. LUX is heavily active in
marketing, whether it be via television, radio, or print publications. Promotion was
done in a novel fashion with cartoon advertisements and online games, for
example. LUX has promoted itself via the usage of celebrities such as Aishwarya
Rai, Kareena Kapoor, Shahrukh Khan, and Audrey Hepburn, and has positioned
itself as a soap that is manufactured and consumed by celebrities. It has run a
number of advertising campaigns, which have included meeting celebrities and
handing out gold coins. LUX has also been engaged in the sponsorship of many
television series, such as LUX Style Awards, amongst other things. Because the
brand is so large and well-established, the LUX brand concentrates on restating the
brand value proposition of being a popular beauty soap rather than introducing new
products.
Processes
As LUX make beauty products for the women only so from this untapped section
we suggested that they should make beauty products for men also. All LUX
products are designed and manufactured at the company's facilities, with the bulk
of the materials coming from globally known suppliers and manufacturers. With
the broad goal of making positive contributions to the communities in which we
live and operate our businesses, a group of experts collaborates to provide more
value to consumers while also providing them with higher quality.

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 10 Marketing Management

Financial Projections
Balance Sheet-LUX Rs (in Cores)
Particulars Mar 2021
Liabilities 12 Months
Share Capital 6.26
Reserves & Surplus 1004.43
Net Worth 1010.69
Secured Loan 94.84
Unsecured Loan .00
TOTAL LIABILITIES 1105.53
Assets
Gross Block 248.25
(-) Acc. Depreciation 53.79
Net Block 194.46
Capital Work in Progress 9.23
Investments 75.49
Inventories 463.64
Sundry Debtors 453.77
Cash and Bank 185.73
Loans and Advances 83.51
Total Current Assets 1186.65
Current Liabilities 352.68
Provisions 7.62
Total Current Liabilities 360.30
NET CURRENT ASSETS 826.35
Misc. Expenses .00
TOTAL ASSETS(A+B+C+D+E) 1105.53

Implementation Controls
The implementation and management of marketing strategies is a process that
should result in the attainment of the strategic goals set by the organization in its
business strategy. The job of organizing and guiding individuals plays a
particularly important role in this process.
Sales objective

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 11 Marketing Management

A major sales target for LUX will be to sell as many units as feasible. Because if
they are successful in selling their items, they will be able to generate a substantial
quantity of profit.
Sales forecast
LUX believes that the sales projections are cautious in nature. When the
advertising budget permits, it will slowly grow the number of units sold. We
believe that LUX's current situation is favorable. And, perhaps, their sales will
continue to grow in the coming years. However, if their sales begin to dwindle,
adequate promotional efforts will be implemented in order to enhance the number
of sales. As this LUX will be available in both super markets & other stores, so in
the following table we can see its sales forecast:

Sells Next three Next six Next one After one After two
month month year year year
Super Markets 3100000 5025000 7700000 59200000 79852000
Others 5200000 8578000 10520000 75605000 91250000
Total sells 8300000 13603000 18220000 134805000 171102000

Cost of Next three Next six Next one After one After two
production month month year year Year
Direct cost 2600000 4922000 7161000 51605000 70630000
Indirect cost 4100000 6791000 8873000 68920000 85020000
Total cost 6700000 11713000 16034000 120525000 155650000

Profit Next three Next six Next one After one After two
month month year year Year
Total Profit 1600000 1890000 2186000 14280000 15452000

Expenditure against budget

The expenditure prediction will be used as a tool to keep the department on track
and to offer indications when corrections and modifications are required to ensure
that the marketing job is properly implemented and completed.

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 12 Marketing Management

LUX is now at a stage of maturity, which means that its marketing expenses are
minimal. However, if promotional efforts are enhanced, marketing expenses will
rise as the company progresses through the mature stage.

Periodic evaluation of all marketing objectives

Following that, it is critical to analyses the marketing goals on a consistent basis. If
this is accomplished, it will be beneficial to them. As a result, they will be better
equipped to recognize and address the issue at hand.

Readjustment to the marketing plan

If any activities were not completed in accordance with the marketing strategy,
those activities must be rescheduled in accordance with the marketing plan. If this
is accomplished, Unilever will be able to offer LUX in a significant number of
locations.

Lecturer: Anas Zia