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

 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:

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???