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 – Lux Soap
 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 largest FMCG company
• Touching 2 out of 3 Indian consumer
• 20 distinct categories – Home and personal care products, food
and beverages.
• HLL – HUL
• 100 factories – India – Manufacturing its diverse product range
• Headquarter: Mumbai
• Market share – Toilet soap category – 54.3%
Revenue Percentage:
Distribution Channel - HUL
Distribution Channel - HUL
 2000+ Suppliers and associates

 4000 Redistribution stockists

 Covering 1 million retail outlets

 Reaching 250 million rural consumers

Product Mix- HUL
The width of the HUL Product
mix:
 The width of the product mix refers to the number of
different product line the company carries
E.g:
 Personal wash
 Laundry
 Skin care
 Oral care
 Deodorants
 Colour cosmetics
 Ayurvedic personal and health care
 Shampoo
 Tea
 Coffee
 Foods
 Ice cream

Width = 12
The lenght of the HUL Product
mix:
 The Lenght of the product mix refers to the total
number of items in the product mix.
E.g:
 Personal wash: Lux, Lifebuoy, Liril, Hamam,
Breeze, Dove, Pears, Rexona
 Laundry: Surf excel, Rin, Wheel
 Skin care: Fair & Lovely, Ponds, Vaseline, Aviance
 Oral care: Pepsodent, Close up
 Deodorants: Axe, Rexona
 Colour cosmetics: Lakme
 Ayurvedic personal and health care: Ayush
 Shampoo: Sunsilk, Clinic
 Tea: Broke bond, Lipton.
 Coffee: Bru
 Foods: Kissan, Annapurna, Knorr
 Ice cream: Kwality walls

Width = 30
 The Depth of the HUL Product mix:
 The depth of the product mix refers to the number of variants
of each product offered 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 Consistency of the HUL Product
mix:
 The consistency of the product mix refers to how closely
related the various product lines are in the use, production
requirement, distribution channel or in any other manner.
HUL Product line are not consistent because of its large width.
Overview : Lux Soap

 1916 – Laundry soap

 1925 – Bathroom soap

 India – 1929

 First brand ambassador: Leela Chitnis (1929)

 Market share is almost equal to Lifebuoy

Marketing Mix:
Product:
 Product Classification:

 Tangible
 Non durable good

 Lux and other soaps fall into the category of

convenience good.
Product Life Cycle:

Maturity Stage
Prominent Variants:
 Lux almond
 Lux orchid
 Lux fruit
 Lux saffron
 Lux sandalwood
 Lux rose
 Lux international
 Lux chocolate
 Lux aromatic extracts
 Lux oil and honey glow etc.
 Logo:

Labelling:
Lux trade character or logo is present
prominently in the package

Female model

Displayed graphically – Key ingredients

Packaging:

Different colors – Different variants( Saffron

– Saffron variants & Pink – Rose extracts
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
 Direct coverage in over 1 million retail
outlets
 Network:

 Factory – Company warehouses – Distributor

– Market

 Factory – Wholesaler & Big retailers (Bulk

orders) – 30% Sales
Promotion:
 Active since 1929
 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:
South India:
1970 – Jayalalitha
Shriya Sharan
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 – Scratch 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 area.)
 Many variants (Almond oil, Orchid extracts,
Milk cream, Fruit extracts, Saffron sandalwood
oil and Honey)
 Strong sales and distribution network backed by
HUL
 Strong brand image
 Dynamically continuous innovations – New
variants and innovative promotions (22 carat
gold coin promotion – “Chance Hai”)
 Strong brand promotion but relatively lower
prices – 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 variation 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 stage – threat of slipping down to

decline stage – if constant reinvention is not
carried 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% Market share
 Brands: Cinthol, Fairglow, Nikhar
 Wipro:
 Brand: Santoor (No 1 in AP) and Chandrika

 ITC:
 1.75% growth in initial five 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 Area: 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
 Offering product in a different way
 Offering – improved quality of the product –
affordable 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
 www.hul.com
 www.google.com
 www.wikipedia.com
 www.mbaparadise.com
 www.fmcg.com
Questions???