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INTEGRATED MARKETING COMMUNICATION

&
CASE STUDY OF LUX

Submitted to

MUMBAI UNIVERSITY

FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF

MASTERS OF COMMERCE

MARKETING STRATEGIES

SESSION 2013-2014

DEPT. OF MANAGEMENT STUDIES


MULUND COLLEGE OF COMMERCE
Under the guidance of: Prof. S. N. Chitale

Submitted by: RAVEENA UDASI


Roll: - 15051
1

DECLARATION

I, Raveena Udasi, student of M.Com here by declared that the research


report entitled INTEGRATED MARKETING COMMUNICATION (LUX) is
completed and submitted under the guidance of is m y original work.
The imperial finding in this report is based on the data collected by me. I have
not submitted this project report to any other Universit y for the purpose of
compliance of any requiremen t of any examination or degree.

Raveena Udasi
M.Com Sem I
ROLL NO. 15051

CERTIFICATE
I, Prof. S. N. Chitale, hereby certify that Miss Raveena Manoj Udasi ROLL. No 15051 of
Mulund College of Commerce, S. N. Road, Mulund (West), Mumbai -400080 of M.com Part I
(Business Management) has completed her project on Integrated Marketing Communication
during the academic year 2013-14. The information submitted is true and original to the best of
my knowledge.

____________________
Project Guide

_____________________
Co-coordinator

___________________
Principal

___________________
External guide

Date:

ACKNOWLEDGEMENTS
A project is a golden opportunit y for
learning and self development. I consider myself very lucky and honored to have
so many wonderful people lead me through in completion of this project.
My grateful thanks to Prof. S. N.
Chitale who in spite of being extraordinaril y busy with her/his dut ies, took time
out to hear, guide and keep me on the correct path. I do not know where I
would have been without her/him. A humble Thank you Maam.
I would also like to thank everyone who took active involvement in helping me
with m y project report with out whom, it would not have been possible.

RAVEENA UDASI

TABLE OF CONTENT

SR. NO.

TABLE OF CONTENTS

PG. NO.

Introduction to Marketing Communication

An Overview of IMC

Benefits & Barriers of IMC

10

Golden Rules

11

DAGMAR

14

Hindustan Unilever Limited : LUX

16

Executive Summary

18

Major Players

19

Competitor Anal ysis

21

10

Company Profile : HUL

23

11

Product Profile : LUX

29

12

Integrated Marketing Communication of Lux

33

13

Bibliography

INTRODUCTION
INTEGRATED MARKETING
COMMUNICATION

Introduction
In most of the companies the promotional function was dominated by mass media,
advertising for many years. Companies relied pri marily on their advertising agencies
for guidance in nearl y all the areas of mar ket ing communication. Most mar keters did
use additional promotional and mar keting communication tools but sales promotion
and direct mar keting agencies as well as package desi gn fir ms wer e generally viewed
as auxiliaries services and often used on a per proj ect basis. Public relations agency
was used to manage the organisations publici ty, i mage and affairs with the relevant
publics on an ongoing basis but they were not viewed as integral participants in the
mar keting communication process.
Many mar keters bui lt strong barriers around the various mar k eti ng and promotional
functions and planned and managed them as separate practices with the different
budgets, a different vi ew of the mar ket with different goals and obj ectives. But these
companies failed to recognise that the wide r ange of mar keting and promotional tools
must be coordinated to communicate effecti vely and present a consistent image to
target mar ket.
During the 1980s, many companies began taking a broader perspective of
mar keting communication in seeing the need for the more strateg ic integration of their
promotional tools. The decade was characterized by rapid development in the areas of
sales promotion, direct mar keting an public relation which began challenging the
advertising role as the dominant for m of mar keting communication{I MC}, which
invol ves coordinating the various promotional elements and other mar keting acti vities
that communicate with the fir ms customers

Definition
Integrated mar keting communication is a strategic business process used to plan,
develop, exec cute and evaluate coordinate, measurable persuasi ve brand
communications progr ams over ti me with customers consumers, prospectus,
employees, associates and other tar geted relevant external and inter nal audiences. The
goals to generate bot h short ter m financial r eturns and build long -ter m brand and
shareholder value.

AN OVERVIEW OF INTEGRATED MARKETING COMMUNICATION


Advertising has much strength like reaching mass audiences, creat ing awareness,
building preference, et c, but it also has maj or weaknesse s li ke tar geting indi vidual
consumers, making them believe a message and pushing them to action. Thus, it has to
be combined with that of other communication elements such as dir ect mar keting,
sales promotions, and public relation. The various promotional tool s invol ved in
product promotion comprise the promotional mix of an or gani zati on. They include
advertising, personal selling, sales promotion, public relations, and direct mar keting.
Integrated Mar keting Communication ( IMC) is the j udicious and efficien t use of the
promotional tools so that a uni versal, clear, and effective promotional message is
communicated amongst the target audience. The concept includes online and offline
mar keting channels. Online mar keting channels include any e -mar keting campai gn s or
programs, from search engine opti misation SEO, pay -per click, affi liate, and email,
banner to latest web related channels for webzine, blog, micro -blogging, RSS, pod
cast, and Internet TV. Offline mar keting channels are traditional print (newspaper,
magazine), mail order, public relations, industry relations, billboar d, radio and
television.

There are five basic tools of integrated mar keting communication:


Advertising:
This tool can get your messages to lar ge audi ences efficiently through such av enues as
radio, TV, Magazines, Newspapers (ROP), Internet, Billboards and other mobile
technological communication devices. This method can efficiently reach a lar ge
number of consumers, although the costs may be somewhat expensive.

Sales Promotion:
This tool is used through coupons, contests, samples, premiums, demonstrations,
displays or incenti ves. It is used to accelerat e short -ter m sales, by building brand
awareness and encouraging repeat buying.

Public Relations:
This integrated mar ket ing comm unications tool is initiated through public
appearances, news/press releases or event sponsorships, to build trust and goodwill by
presenting the product , company or person i n a positi ve li ght.

Direct Marketing:
This tool will utilized email, mail, catalogs, encourage direct responses to radio and
TV, in order to reach targeted audiences to i ncrease sales and test new products and
alternate mar keting tactics.

Personal Selling:
Setting sales appoint ments and meetings, home parties, making presentat ions and any
type of one -to-one communication, to reach your customers and st rengthen your
relationship with your clients, initiate this IMC tool.

Integrated Marketing Examples


Ni ke is a great exampl e of a company that has fully embraced the concept of
integrated mar keting. Their integrated approach includes traditional advertising
(billboard, magazine, and television); sponsoring sporting events and players such as
the Super bowl and Tiger Woods; and engagi ng in online mar keting initiatives by
allowing consumers to customi ze their Ni ke shoes. They also spend a great deal of
money in search mar keting. Ni ke's appr oach allows them to communicate their
message consistently across all media outlets; and at the same ti me share that message
at ever y customer to uch point; that is, use Ni ke products and you will increase your
perfor mance regardless of what sport you ar e invol ved in.
Another example is HP's "The Computer is Personal Again" campaign. They utilized
many for ms of media with great consistency, and cap itali zed on each of the media's
individual strengths.

The role of IMC in Branding:


One of the maj or reasons for the growing i mportance of the IMC over the past decade
is that it plays a maj or role in the process of developing and sustaining brand ident it y
and equit y. Building and properl y managing brand equit y has become a priorit y for
companies of all the si zes, in all t ypes of industries, and in all t ypes of mar kets. With
more and more products and ser vices compet ing for consideration by customers who
have less and less ti me to make choices, wel l -known brands have a maj or competitive
advantage in todays mar ket place. Building and maintaining brand identity and and
equity requires the creation of well known brands that have favorable, strong and
unique association in t he minds of the consumer.

Benefits of IMC
Although Integrated Marketing Communications requires a lot of ef fort it delivers
many benefits.
1. It can create competitive advantage, boost sales and profits, whi le saving money,
time and stress.
2. IMC wraps communications around customers and helps them move through the
various stages of the buying process. This Relationship Marketing cements a bond of
loyalt y with customers. The ability to keep a customer for life is a powerful
competitive advantage.
3. IMC also increases profits through increased effectiveness.
4. Carefull y linked messages also help buyer s by gi ving ti mel y reminders, upda ted
infor mation and special offers which, when presented in a planned sequence, help
them move comfortabl y through the stages of their buying process
5. IMC also makes messages more consistent and therefore more cr edible..
6. Finall y, IMC saves money as it eli minates duplication in areas such as graphics and
photography since they can be shared and used in say, advertising, exhibitions and
sales literature.

Barriers to IMC
1. Functional silos: Ri gid or ganisational structures are infested wit h manag ers who
protect both their budgets and their power base. Sadl y, some or ganisational structures
isolate communications, data, and even managers from each other. For example the PR
depart ment often doesnt report to mar keting. The sales force rarely meets th e
advertising or sales pr omotion people and so on. Imagine what can happen when sales
reps are not told about a new promotional offer
2. Stifled Creati vit y: It shouldnt matter whose creative idea it is, but often, it does.
An advertising agency may not be so enthusi astic about developing a creative idea
generated by, say, a PR or a direct mar keting consultant.
IMC can restrict cr eativit y. No more wild and wacky sales promotions unless they
fit into the overall marketing communications strategy.
3. Time Scale Conflicts: Add different ti me scales into a creative brief and youll see
Time Horizons provide one more barrier to IMC. For example, i mage advertising,
designed to nurture the brand over the longer term, may conflict with shorter ter m
advertising or sales pr omotions desi gned to boost quarterly sales.
4. Lack of Management Know - how: A sur vey in 1995, revealed that most managers
lack expertise in IMC. But its not j ust managers, but also agencies.

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GOLDEN RULES:
Despite the many benefits of Integrated Mar keting Communications (or IMC); there
are also many barriers. Heres how you can ensure you become integrated and stay
integrated 10 Golden Rules of Integration
1. Get Senior Management Support for the i nitiative by ensuring t hey under stand the
benefits of IMC.
2. Integrate at Different Levels of management. Hori zontall y ensure that all
managers, not j ust marketing managers under stand the i mportance of a consistent
message whether on delive r y trucks or product quality.
3. Ensure the Desi gn Manual or even a Brand Book is used to mai ntain common visual
standards for the use of logos, t ype faces, colours and so on.
4. Focus on a clear marketing communications strategy.
5. Start with a Zero Budget. Start from scratch. Build a n ew communications plan.
6. Think Customers Fi rst. Wrap communicati ons around the customers buying
process. Identif y the stages they go through before, during and aft er a purchase
7. Build Relationships and Brand Values. Al l communications should help t o develop
stronger and stronger relationships with cust omers.
8. Develop a Good Marketing Infor mation System which defines who needs what
infor mation when.
9. Share Artwor k and Other Media. Consider how, say, advertising imager y can be
used in mail shots, exhibition stands, Christ mas cards, news releases and web sites.
10 Be prepared to change it all. Learn from experience. Constantly search for the
opti mum communicati ons mix.

Importance of objectives:
Advertising and promotional obj ectives are needed for several reasons, including the
functions they ser ve i n communication, planning and decision -making and
measurement and eval uation.
Communications: Many people are invol ved in the planning and developm ent of an
integrated mar keting communications programmed on the client side as well as in
various promotional agencies. The advertising and promotional pr ogramme must be
co-coordinated within the company, inside the ad agency, and between the two. Any
other parties invol ved in the promotional campai gn, such as the public relations or the
sales promotion fir ms, research specialist or media buying ser vices must also know
what company hopes t o accomplish through its mar keting communication programme.
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Planning and Decision Making: when the pr omotional obj ectives are specific they
guide the development of the integrated marketing communications plan. All the
phases of the fir ms pr omotional strategy should be based on the established
obj ectives, including bu dgeting, creati ve and media decisions as well supported
programmes such as di rect mar keting, public relations, sales promot ion or reseller
support. Decision making becomes easier if the obj ects are meaningful.

Measurement and evaluation of Results: one of the i mportant reasons for setting
specific obj ectives is that they provide a benchmar k against which the success or
failure of the promoti onal campai gn can be measured. Without specific obj ectives, it
is extremel y difficult to deter mine what the f irms advertising and promotional efforts
accomplished. The promotional planners pr ovide measures that can be used to evaluate
the effectiveness of the mar keting communication programme. Comparing actual
perfor mance against the measurable obj ectives is the best way to determine if the
return j ustifies the expense.

Promotional Objectives:
To increase brand awareness by 25%, Build Awareness about the product. Tell the
mar ket who they are and what they have to offer. Create Interest Moving a customer
from awareness of a pr oduct to maki ng a pur chase can present a significant challenge.
Provide Infor mation, Sti mulate Demand, once a purchase is made, a mar keter can use
promotion to help buil d a strong relationship that can lead to the purchaser becoming
a loyal customer. For i nstance, many retail stores now ask for a customers email
address so that follow -up emails containing additional product inf or mation or even an
incentive to purchase other products from the retailer can be sent i n order to
strengthen the customer -mar keter relationship.

Communications Obj ectives:


Some common mar ket ing c ommunication obj ectives include:
1. Create a brand awar eness for your company
2. Defining a need the product or ser vice can fulfil
3. Encouraging action from the tar get

Sales Objectives:
Many managers believe that monies spent on advertising and othe r for ms of
promotion should produce measurable results, such as increasing sales volume by a
certain percentage or i ncreasing the brands mar ket share.
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Advertising Strategies
Infor mation, Dissemination/Persuasion: comparative ads attempt t o get consumers to
believe that the sponsoring product is better . Although these are fr equently disliked
by Americans, they intend to be among the most effective ads in the U.S.comparative
advertising is illegal i n some countries and i s considered ver y inappropriate cult urally
in some societies, especially in Asia.
Fear appeals: tr y to motivate consumers by t elling them the consequences of not
using a product. Mout hwash ads, for exampl e, talk about gingi vitis and tooth loss can
result from poor oral hygiene. It is i mpor tant, however, that a specific way to avoid
the feared sti mulus be suggested directly in t he ad. thus, si mpl y by using the
mouthwash advertised, these terrible things can be avoided.

Classical conditioning: a more favourable br and i mage can often be creat ed among the
consumer when an association to a li ked obj ect or idea is created.
For e.g., an automobil e can be paired with a beautiful woman or a product can be
shown in a ver y upscale setting.
Humour Appeal: the use of humour in advertisements is quite common. this method
tends not to be particularly useful in persuading the consumer.however,more and more
advertisers find themselves using humour in order to compete for t he consumers
attention.often,the humour actuall y draws at tention away from the prod uct -people will
remember what was funny in the ad but not t he product that was advertised. Thus, for
ads to be effecti ve, the product advertised should be an integral part of what is funny.
Repetition: whatever specific obj ective is sought, repetition is cri tical. This is
especially the case when the obj ective is to communicate specific i nfor mation to the
customer. Advertising messages, even si mple ones are often underst ood by consumers
who have little moti ve to gi ve much attention to advertisements to wh ich they are
exposed. Therefore, very little processing of messages is li kel y to be done at any one
time of exposure.

Celebrity Endorsement s: celebrities are likely to increase the amount of attention


gi ven to an advertisement. However; these celebritie s may not be consistently
persuasive. The elabor ation likelihood model discussed below ident ifies conditions
when celebrit y endorsements are more li kel y to be effective.

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DAGMAR:
It means Defining Advertising Goals for Measuring Advertising Effective ness. It was
put forward by Russell H.Colley.Dagmar tell s that advertising has t o perfor m a
particular communication task and the task has to be accomplished among a well
defined audience within a specified period of ti me. Following are t he steps,
Awareness: an indi vidual starts at some point by being unaware of a brands presence
in the mar ket. The initial communication task of the brand is to increase consumer
awareness of the brand.
Brand Comprehension: Knowledge about the product or the or ganization is necessar y.
This can be achieved by providing specific infor mation about key brand attributes. In
attempting to persuade people to tr y a different brand of water, it may be necessar y to
compare the product with other mineral water products and provide an a dditional
usage benefit, such as environmental clai ms. The ad of Ganga mineral water, featuring
Govinda, which banked on the purity aspect. They related the purity of the water with
that of river Ganga.
Conviction: By creating interest and preference, buyers are moved t o a position where
they are convinced that a particular product i n the class should be t ried at the next
opportunity. To do thi s, audiences beliefs about the product have to be moulded and
this is often done through messages that demonstrate the products superiority over a
rival or by tal king about the rewards as a result of using the product. For e.g., many
ads like Thumbs Up featured the reward of social acceptance as grown up. It al mo st
hinted that those who preferred other drinks were kids.
Action: invol ves some move on the part of t he buyer, such as tr ying a brand for the
first time, visiting showroom or requesting i nfor mation. For eg, Tupperware, Aqua
Guard, are famous in Indian ci ties as a result of its personal selling efforts.

Concept of DAGMAR:
o A Communication Task : An advertising goal is a specific communication task, to
be accomplished among a definite audience, in a gi ven period of time.
o A specific Task: The second i mportance concept of DAGMAR approach is that the
advertising goal shoul d be specific.
Measurable Task: To indicate exactly what appeal or i mage is to be communicated
and to specif y the measurement procedure.
Benchmar k: its a standard or a point of ref erence which can be used to deter mine the
success or failure of an ad campai gn. President Lincoln has been quoted as saying, If
we could first know where we are & whither we are tending, we could better j udge
what to do and how to do it. Benchmar ks can s uggest how a certai n goal can best be
reached.

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Target Audience: its i mportant to define the target audience.e.g. When a new brand
of fashion gar ments ar e introduced, a common consumer will respond much differently
as compared to a consumer who maintains a certain lifestyle.
Time Period: in setting advertising obj ectives ti me period should be specified within
which the obj ectives must be achieved. The ti me period can range from a few days to
a year or more. Most of the ad campai gns specify ti me periods fo r a few months to a
year depending upon t he situation and t ype of response expected.
Written Goals: Finally, goals should be committed to paper.

Limitations of DAGMAR :
Sales Oriented Perfor mance : DAGMAR approach is considered to be successful if th e
sales increase and it is considered as a failur e if increase in sales i s not achieved.
Partial Assessment : the DAGMAR approach assesses the i mpact of ad campai gn in a
quantitative ter m, it does not explain how to i mprove qualitative r epresentation.
Unsuitable to Small Advertising: onl y lar ge advertisers with financial stability can
allocate funds to collect the infor mation. Small firms cannot afford to do it.

Non -Comprehensi ve Study : it is not necessary that a consumer wil l go through the
pre -defined steps in the response hierarchy model before deciding to buy, he may have
impulsi ve purchaser.DAGMAR does not explain i mpulsi ve purchaser.

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HINDUSTAN UNILEVER LTD: LUX SOAP

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ABSTRACT
Hindustan Unilever Lt d. is a well -known and largest FMCG company in India. HUL
has always revamped its products to meet the changing needs of the consumer without
compromising on the quality. This report deals with one of its premier brands "LUX".
HUL leads the mar ket in the toilet soap categor y with 54.3% mar ket share. Lux has
inched up to be on par with Lifebuoy in
HUL's soaps portfolio. The Lux brand now has an al most equal market share as
Hindustan Lever 's largest selling soap brand - Lifebuoy. This repor t gi ves an over view
of the histor y of the company and the brand "Lux", the various strategies adopted to
survi ve in the mar ket f or over 75 years and t he various competing brands. The
promotional acti vities adopted, the brand's st rengths and weaknesses , threats faced are
also analysed. The FMCG categor y is always a battleground for all the competing
firms and the bathing soap categor y is no dif ferent. With more fir ms entering the
mar ket, maintaining the customer base is not ver y easy. Within six months, ITC's soap
products have been able to capture 1.75% of the mar ket share.

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Executive Summary
Unilever is a multinational consumer product manufacturing g iant operating in over
hundred countries all around the globe. Unilever Bangladesh is the B angladesh
chapter of Unilever, where the company holds 60.75% share wher eas the Government
of Peoples Republic of Bangladesh holds 39.25% share. Unilevers one of the m ost
popular brand is LUX. They segments LUX. s mar ket according to geographical
locations. It further differentiates these segments into Socio Economic Cluster (SEC)
which takes into accou nt the criteria of education and profession which ulti matel y
measures the financial abilit y of consumers. The cluster is divided into five parts
starting from A to E. Unilever tar gets the ur ban and sub urban upper middle class and
mi ddle class segment of the population, who falls under A to C of SEC.
Tactical mar keting tools, 4Ps, are extensi vely used by the company to mar ket LUX.
Though LUX is produced in Bangladesh, Unilever Bangladesh mai ntain s the same
standard all around the globe. The product is available in six different fragrances
under three different sizes. Since the demand for beaut y soap mar ket is to a great
extent oligopolistic, variations in price lead to price war which can eventually break
down the companys mar ket share. Thus Unile ver cannot provide a better price than
its competitors. But the price is aff ordable by most of the people. Unilever
Bangladesh has outsourc ed its distribution channels to third part y distributors which
allow them to distribute LUX in massi ve bul ks amounting to around ten million
pieces. It undertakes t he largest promotional activities in the beauty soap industr y.
The beauty soap industry has a few maj or producers of which Unilever holds mar ket
share of slightly less t han 50%. Other competing brands li ke Tibbet, Aro matic and
Keya have started to have a strong consumer base, but LUX.s product features
distribution and promotional activities have created hi gh brand loyalt y for which it is
still the mar ket leader. Unilever, with the aid of its heavy promotional activities, has
been able to penetrate the mar k et. But the ot her producers in the industry are posing a
threat towards Unilevers mar ket share as they have moved towards the rural masses
of the population. Therefore, Unilever Bangl adesh should undertake further steps such
as moving towards the rural and/or poorer segment; attract children (by maki ng a
special product for kids) and other inn ovative promotional acti vitie s to retain its
command in the indust ry.

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Industry analysis

The toilet soaps mar ket is estimated at 530,000 tpa includin g small i mports. The
mar ket is littered over with several, leading national and global br ands and a large
number of small brands, which have li mited mar kets. The popular and premium brands
include Lifebuoy, Lux, Cinthol, Liril, Rexona, and Nir ma.

Toilet soaps, despite their diver gent brands, are not well different iated by the
consumers. It is, therefore, not clear if it is the brand loyalt y or experi mentat ion lured
by hi gh volume media campai gn, which sustain them. A consequence is that the
mar ket is fragmented. It is obvious that this must lead to a hi ghl y competitive mar ket.
Toilet soap, once onl y an urban phenomenon, has now penetrated practically all areas
including remote rural areas. The i ncremental demand flows from population increase
and rise in usage nor m i mpacted as it is by a greater concern for hygiene. Increased
sales revenues would also expand from up gradation of qualit y or per unit value.
As the mar ket is const ituted now, it can be divided into four pri ce segments: premi um,
popular, discount and economy soaps. Premi um soaps are esti mated to have a mar ket
volume of about 80,000 tonnes. This translates int o a share of about 14 to 15%. Soaps
for m the lar gest pie of the FMCG Mar ket wit h bathing & toilet soaps accounting for
around 30% of the soap mar ket, by value. Currently, the soap industry is di vided into
three segments namel y Pre mium, Popular and Economy/ Sub popular.
To fight competition, maj or players Hindust an Unilever Ltd ( HUL), Godrej Consumer
Products Ltd ( GCPL) and Wipro Consumer Care & Li ghting are now dr awing up fresh
game plans. And the accent is clearly on innovation to gain mind share a s well as
mar ket share in this overcrowded categor y.

Major Players

Hindustan Unilever Lt d.
With over seven brands LUX, LIFEBUOY, H AMAM, REXONA, BREEZE, DOVE
and PEARS has 54.3% share of the overal l soap mar ket. HUL is India's lar gest Fast
Moving Consumer Goods Company; its j ourney began 75 years ago, in 1933, when the
company wasfirst incorporated. The company stirring the li ves of t wo out of three
Indians with over 20 distinct categories in Home & Personal Care Prod ucts and Foods
& Beverages and also one of the countr y's largest exporters. HUL's brands includes :
Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovel y, Pond's, Sunsilk, Clinic,
Pepsodent, Close -up, Lakme, Brooke Bond, Kissan, Knorr -Annapurna, Kwality Wal l 's
- are household name s across the countr y. They are manufactured in over 40 factories
across India. In the Rs7,0 00 crore by sales soap mar ket, HULs market share has
dropped to 54.3% in March 2008 from 55.9% in March 2006.
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Godrej Consumer Products


GCPL, Indias second largest soap maker after Hindustan Unilever Ltd, has nearl y
9.2% mar ket share. Wi th 11% mar ket share in value ter ms, it is the second lar g est
soap maker after Hindustan Unilever. Godrej Consumer Products ( GCPL) is a maj or
player in the Indian FMCG mar ket with leadership in personal, hai r, household and
fabric care segments . The company is one among the lar gest mar keter of toilet soaps
in the countr y with l eading brands such as CINTHOL, FAIRGLOW, NIK HAR, &
ALLCARE. Fair glow brand, India' s first Fai rness soap, has created mar keting history
as one of the most successful innovations. It is a lso the preferred supplier for contract
manufacturing of toilet soaps, some of which are the most well -known brands in the
country.

Wipro
In the Indian mar ket, Wipro is a leader in pr oviding IT solutions and ser vices fo r the
corporate segment in India. Wipro also has a profitable presence in niche mar ket
segments of infrastructure engineering, and consumer pr oducts & l ighting.Wipro has
made a lar ge acquisition in the Consumer Care business. The presence of Wipro in the
toilet soap industry can be seen through thei r brands such as SANTOOR and
CHANDRIKA. With industry leading or ganic growth rates and the acquisition,
Consumer care business has reached a Revenue run rate in excess of $100 million per
quarter.

Procter & Gamble Indi a


Procter & Gamble Indi a (PGHHCL) was incorporated in 19 64 after Procter & Gamble,
US, acquired Richardson Vicks, US. For merl y known as Ri chardson Hindustan (the
Indian s ubsidiar y), it was later named as P&G. It changed its name aga in in 1998 to
Procter & Gamble Hygiene and Health Care i n order to reflect the nature and character
of the business of the company. During 2004 -05 the company has i ncreased its
installed capacit y of Soaps &
Detergents and Toilet Preparations etc by 36500 Tonnes and 263 T onnes respecti vel y.
With this expansion the total installed capacity of Soaps & Deter gents a nd Toilet
Preparations etc has increased to 108500 Tonnes and 5875 Tonnes r espectivel y .

Nir ma
Incorporated as a pri vate limited company, Nir ma was converte d into a deemed public
company and then to a public li mited one in Nov.'93. Nir ma has a leadership presence
in Deter gents, Soaps and Personal Care Products. To have a greater control on the
quality and price of it s raw materials, Nir ma undertook backward i ntegration into
manufacture of Industrial Products like Soda Ash, Linear Al kyl Benzene ( LAB), Alfa
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Olefin Sulphonate s (AOS), Fatty Acid, Gl ycerine and Sulphuric Acid. During 1996 -97,
Nilnita Chemicals, Nir ma Deter gents, Nir ma Soaps and Deter gents, and Shi va Soaps
and Deter gents were amal gamated with the company. The company created 'Nir ma
Consumer Care Ltd.' - a wholl y owned subsidiary on 22nd Aug.'97, which is the sole
licensee of the brand name 'Nir ma' within India. Nir ma enj oys a share of 6.74% in
soaps.

IT C
IT C, the countr ys lar gest ci garette maker, entered the segment l ast year and has made
a strong headway in a short ti me. According to AC Nielsen, its share has grown to
1.75% in j ust five months despite the fact that many of its brands such as Superia ,
Fiama Di Wills and Vivel are currently sold in onl y six states.

COMPETITOR ANALYSIS
External Competitors
Santoor:
Santoor is the flagship brand in the Wipro Consumer Care & Li ght ing stable and the
2nd lar gest brand of soap in India in the popular segment of the categor y. T he brand
enj oys two decades of trust since its launch in 1986 and has gr own to be counted
amongst the top brands in the Countr y in an intensivel y competiti ve mar ket. Millions
of women across t he country have discovered the secret of younger looking skin with
Santoor. It is a trul y unique s oap that combi nes the goodness of natural ingredients Sandal, Tur meric and natural Skin Soften ers. Sandal provi de s a cooling and soothing
effect that softens ski n, while tur meric cont ro ls for mation of skin darkening pi gments
like melanin, to gi ve skin a radiant glow. Natural Skin Softeners make ski n soft and
supple. The end result , skin that is so healthy and beautif ul, it lies about your actual
age!
Amongst the first brands in the Countr y to launch an offering with t he twin ingredient
benefits of Sandal and Turmeric, Santoor has over the years moved from a p urel y
natural ingredient based appeal, to one of the most preferred beauty soaps of the day.
Today, Santoor is one of the fastest gr owing soap brands in India. Santoor is available
in three variants Santoor (Sandal & Tur mer ic), Santoor White (Sandal & Al mond
mil k) and Sant oor Chandan which is a premi um soap manufactured with extracts of
Sandalwood oil a favourite of discerning consumers.

Cinthol:
Cinthol the popular and much -loved brand of Godrej Consum er Products Li mited
(GCPL)have been a favourite of people for many years. All differ ent soaps in i ts range
21

are having feel -fresh f ragrance and hi gh TFM index. Cinthols range covers an
economic Li me -fresh, the medium deo-soaps (spice, li me,cologne and the new sport)
and a sli ghtl y expensi ve Cinthol -Ori ginal.
For decades, Cinthol -Original is one of the best soaps made in In dia. It had a si mple
red-cover which attracts none! But was still able to sustain itself in the ma r ket .
Godrej has now launched the i mproved Cinthol range. Cinthol now offers a deo -range
of soaps, talc and deo -sprays in three exciting fragrances - Classic, Cologne and Sport
in a trendy new packaging. It also offers
Cinthol fresh soap and Cinthol Regular soap with new exciting p ackaging. The eye catching and vibrant packaging symboli zes a sense of adventure, zest and action. The
new Cinthol range bri ngs 24 -Hour Confidence through Active Deo For mula, which
controls body odour, Powerful Dr yShield that absorbs sweat, UltraScent Technology
for long lasting fragr ance and Freshness that revitalises you 24x7.The new range will
be available across the countr y at modern ret ail and other outlets and will be
supported by hi gh -i mpact advertising on t elevision, print, out -door , on -line and radio.
Vivel and Superia:
The Vivel Di Wills range is available in two variants. Its unique carton pack has been
developed by ITC's design team to provide a novel consumer experience. Vivel Di
Wills Sheer Radiance is enriched with Olive Oil, to provide skin l ustre to make it
radiant. Vivel Di Wills Sheer Crme is enriched with Shea Butter, to moisturi ze skin
to make it soft and supple.
The Vivel range of soaps is available in four variants:

Vivel Young Glow is enriched with Vitamin E and Fruit Infusions which help in
providing youthful glow to the skin.
Vivel Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin
feel beautifully soft.
Vivel Sandal Spar kle i s enriched with Sandal wood Oil and Acti ve Clay which
helps in providing clear skin.
Vivel Ayur veda Essence is enriched with multiple Ay ur vedic Ingredients which
help protect skin from ger ms and harsh environment, keeping it healthy and
beautiful.

In the popular segment, ITC has launched a range of soaps and shampoos under the
brand name
Superia. Superia Soaps enriched with natural ingredients gi ve radi ant glowing skin.
Superia
Soaps are available in four variants :

Fragrant Flower: with the fragrance of Rose & Lavender Oil


Soft Sandal: with the f ragrance of Sandal & Al mond Oil
Natural Glow: with Neem & Coconut Oils
Healthy Glow: with Or ange Oil

22

Company profile
Hindustan Lever Ltd
Hindustan Lever Ltd ( HLL) is India's largest Fast
Moving Consumer Goods (FMCG) company. HLL's brands li ke L ifebuoy, Lux, Surf
Excel, Rin, Wheel, Fair & Lovel y, Pond's, Sunsilk, Clinic, Pepsodent, Close -up,
Lakme, Brooke Bond, Kissan, Knorr -Annapurna, Kwality Wall 's ar e household names
across the countr y and span a host of categor ies, such as soaps, det ergents, personal
products, tea, coffee, branded staples, ice cr eam and culinar y products. These
products are manufact ured over 40 factories across Indi a and the associated operations
invol ve over 2,000 suppliers and associa tes. Hindustan Lever Li mi ted's distribution
networ k comprises about 4,000 redistribution stockist s, covering 6.3 million retail
outlets reaching the entire urban population, and about 250 million rural consumers.
HLL is also one of India's lar gest exporters. It has been recognised as a Gold en Super
Star Trading House by the Government of India. Presentl y, HLL has over 16,000
employees including over 1,200 managers. It s mission is to "ad d vi tality to life." The
Anglo -Dutch company Unilever owns a maj ority stake in Hindustan Lever Li mited.

In the late 19th and early 20th centur y Unilever used to export its p roducts to India.
This process began in 1888 with the export of Sunli ght soap, which was fo llowed by
Lifebuoy in 1895 and other famous brands li ke Pears, Lux and Vi m soon after. In
1931, Unilever set up its first Indian subsidi ary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Li mited (1933) and United Traders
Li mited (1935). The three companies were merged in November 1956 and the new
entity that came into existence after mer ger was called a s Hindustan Lever Li mited.
HLL offered 10% of it s equity to the India n public, and it was the first among the
foreign subsidiaries to do so. Currentl y, Unil ever hold s 51.55% equity in the company
while the rest of the shareholding is distributed among about 3 80,000 indi vidual
shareholders and financial institutions.

Brooke Bond entered Indian mar ket in 1900 and in 1903 it launched Red Label tea in
the countr y. In 1912, Brooke Bond & Co. India Li mited was fo r med. Unilever
acquired Brooke Bond through an international acquisition. Si milarly, Lipton's link
with India date back t o 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton
Tea (India) Li mited was incorporated. Pond's ( India) had been in Indian mar ket since
1947. It j oined the Unilever ranks through an international acquisition of Chesebrough
Pond's USA in 1986.

23

The liberalization of Indian economy in 1991 and subseq uent removal of the
regulator y framewor k allowed HLL to explor e ever y single product and op portunity
segment, without any constraints on product ion capacity. The 1990s witnessed a string
of crucial mer gers, acquisitions and alliances. In 199 2, the erstwhile Brooke Bond
acquired Kothari General Foods, with si gnificant interests in Instant Coffee. In 1993,
it acquired the Kissan business from the UB
Group and the Dollops Ice -cream business fr om Cadbur y India. I n one of the most
talked about events of India's corporate history, the erstwhile Tata Oil Mills Company
(TOMCO) mer ged wit h HLL, effecti ve from April 1, 1993. In July 1993, Broo ke Bond
India and Lipton India mer ged to for m Brooke Bond Lipton India Limited ( BBLIL).
Brooke Bond Lipton Indi a Li mited launched Wall 's range of Frozen Desserts in 1994
and by the end of the year, HLL entered into a strategic alliance wi th the Kwality
Icecream Group famili e s. BBLIL mer ged wit h HLL, with effect from January 1, 1996.
HLL has also set up a subsidiary in Nepal, Nepal Lever Li mited (NLL). The NLL
factory manufactures HLL's pr oducts li ke Soaps, Deter gents and Personal
Products both for the domestic mar ket and exports to India. I n January 2000, as part
of its divest ment strat egy, the government decided t o award 74 per cent equit y in
Modern Foods to HLL. In 2002, HLL acquired the government 's remaining stak e in
Modern Foods. In February 2007, the company has been renamed t o "Hindustan
Unilever Li mited" to strike the opti mum balance between maintaini ng the heritage of
the Company and the f uture benefits and synergies of gl obal ali gnment with the
corporate name of "Unilever".

Mission
Unilever 's mission is t o add Vitality to life. They meet ever yday ne eds for nutrition,
hygiene and personal care with bran ds that help people feel good, look good and get
more out of life.Their deep roots in local cul tures and mar kets around the world gi ve
them strong relationship with consumers and are the fou ndation for their future
growth.
A key requirement is building in the qualit y expectations of their consumers into their
products.
To win consumers confidence and loyalt y, they need to consistent ly deli ver branded
products of excellent quality.
The Quality Policy describes the principles that ever yone in Unilever follows,
wherever they are in t he world, to ensure that they are recognised and trusted for their
integrit y, the quality of their brands and pr oducts, and the hi gh standards they set.

24

Principles of the Quality Policy

Putting the safet y of thei r products and consumers first.

HUL has stringent mandatory qualit y standards in place against which compliance is
verified through regul ar audits and self assessments. These standards ensure they
design, manufacture and suppl y products that are safe, o f excellent quality, and
confor m to the relevant industry a nd regulatory standar ds in the countries in which
they operate.
They acti vel y engage consumers and customers, translating their needs and
requirements into p roducts and ser vices, thus creating c onsumer val ue wherever they
position their products.

Qualit y is a shared r esponsibility


Quality and consumer safety is the responsibility of ever y Unilever empl oyee and
Unilever demonstrates visible and consistent leadership to meet this policy. The dri ve
for quality, in all that they do, is a passion r eflected in their brand development,
manufacturing and customer ser vice processes.

Present stature
Hindustan Unilever Li mited (HUL) is India's largest Fast Moving Co nsumer Goods
company, touching the lives of two out of thr ee Indians with over 20 distinct
categories in Home & Personal Care Product s and Foods & Beverages. They endow the
company with a scale of combined volumes of about 4 million tonnes and sales of
nearly Rs.13718 crores.
HUL is also one of the countr y's lar gest exporters; it has been recognised as a Golden
Super Star Trading House by the Government of India. The mission that inspires
HUL's over 15,000 employees, including o ver 1,300 managers, is t o "add vitality to
life." HUL meets ever yday needs for nutrition, hygiene, and perso nal care with brands
that help people feel good, look good and get more out of life. It is a mission HUL
shares with its parent company,
Unilever, which holds 52.10% of the equit y. The rest of the shareholding is
distributed among 360,675 indi vidual shareholders and financial institutions.
HUL's brands - li ke Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovel y, Pond's,
Sunsilk, Clinic, Pepsodent, Close -up, Lakme, Brooke Bond, Kissan, Knorr -Annapurna,
Kwality Wall 's are household names across the countr y and span many categories soaps, deter gents, p ersonal products, tea, cof fee, branded staples, ice cream and
culinary products. They are manufactured over 40 factories across India.

25

The operations invol ve over 2,000 suppliers and associates. HUL's distribu tion
networ k, comprising about 4,000 redistribution stockists, covering 6.3 million retail
outlets reaching the entire urban pop ulation, and about 250 million rural consumers.
HUL has traditi onall y been a company, which incorporates latest technol ogy in all its
operations. The Hindustan Unilever Research Centre (HURC) was set up in 1958, and
now has facilities in Mumbai and Bangalor e. HURC and the Global Technology
Centres in India have over 2 00 hi ghl y qualif ied scientists and technologists, many
with post -doctoral experience a cquired in the US and Europe. Group operates through
seven segments: Soaps and Deter gents, Personal Products, Exports, Beverages, Foods,
Ice Creams and Other. The produc ts include home and per sonal car e products, foods
and beverages, industr ial and agricultural products. Home and personal care pro ducts
consists of personal and fabric wash, household, oral care, ski n and hair care,
deodorants, perfumer y, colour cosmetics and baby care. Foods and beverages includes
tea, coffee, cooking fats and oils, b aker y fats, ice creams, tomato products, fruit and
vegetable products, ri ce, salt, atta and rawa, marine products and mushrooms.
Industrial and agricult ural products includes specialty chemicals, bulk chemicals,
fertilisers, animal feeds, seeds, plant growth nutrients, processed -tr i -gl ycerides and
agri commodities, yeast, leather, footwear and carpets, ther momet ers and plantations.
Its brands are spread across 20 consumer product categories. Hindustan U nilever
mar kets consumer goods throughout India. The company faces competition from
international, local and regional players.
The company derives 44.3% of its revenues from soaps and deter g ents, 26.6% fro m
personal care products, 10.5% from beverages, and the rest from foods, ice creams,
exports, and other products. As counterfeit trade increases, the company stands to lose
on its brand equit y and exclusi vity.

New Products introduced by HUL in recent ye ars:

Lux strawberr y and cr eam


Clinic plus multi sachet
Ponds age miracle
Axe shock and recover
Paddle pop
Wheel active Green

26

Di visions
Home and Personal Care
The HPC business is made up of Fabric Wash, Household Care, P ersonal Wash and
Personal Care categori es.

Personal Wash: Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Rexona
Laundr y: Surf excel, Rin, Wheel
Skin care: Fair and Lovel y, Ponds, Vaseline, Aviance
Oral care: Pepsodent, Close up
Deodorants: Axe, Rexona
Colour cosmetics: Lakme
Ayur vedic personal and health care: Ayush

Foods
The Foods Di vision of your Company comprises Beverages, P rocessed Foods, Ice Creams and Modern Foods businesses. The Di vision recorded strong growth in 2007.

Tea: Brooke Bond, Li pton

Coffee: Bru

Foods: Kissan, Annapurna, Knorr

Ice cream: Kwality walls

Hindustan Lever network


Started in 2003, Hindustan Unilever Net wor k (HUN) is HUL's Dir ect Selling ar m. It is
a multi -categor y direct selling business offering a wide range of high -qualit y, hi gh perfor mance products for its consumers and also exciting business and personal
development opportunities for its consultants. It already has about 7 lakh consultants all independent entrepreneurs, trained and guided by HUN's exper t managers and
trainers.
HUNs mission is to a create millionaire club in India. Ther e are many consultants
who are earning at over a rate of Rs.1,00,000 per annum. Several consultants earn
over Rs.50,000 per month. HUN offers to build a business with d ifferent categories of
Home & Personal Care (HPC) and Food products. They are all essential household
needs. And they are all exclusive to HUN, specifically developed for the Direct
Selling channel, and not available in the retail channel.

27

HUN has alread y spread to 1500 towns and cities, backed by 2 8 of fices and over 130
service centres across the countr y. HUN's vi sion is to earn the love and res pect of
India by making a real difference to the li ves of million Indians.

Exports
Today, HUL is one of Ind ias Lar gest export ers of branded Fast Moving Consumer
Goods. It has been recognized by the Government of India as a Gol den Super Star
Trading House. Over time HUL has developed into a viable & competitive so urcing
base for Unilever worl d wide in Home and Personal Care & Foods & Beverages
categor y of products. HUL is also a global mar keting ar m for select licensed Unilever
brands and als o wor ks on building categories with core countr y advantage such as
branded basmati rice.

HUL Exports offers high level of ser vice with flexibility and r esponsiveness thorough
out the suppl y chain. It has a dedicated or ganization structure to suppo rt this
endeavour and this has helped in growth of t hese businesses in particular. Intrinsic
cost competiti veness i n the e nd to end Suppl y chain with appropriate technology and
competitive capital invest ment operations while delivering best in class quality
enables HUL to position itself as a key sour cing hub for
Unilever and also become a preferred partner for Global custom ers in categories we
operate. HULs key f ocus in the exports business is on two broad categor ies. It is a
sourcing base for Unil ever brands in Home & Personal Care ( HPC) and Food and
Beverages (F&B) for supplies to other Unilever companies. It also focuse s on
becoming a preferred supplier to both non -Unilever and Unilever clients in three
categories in which India, as a countr y, has competitive advantage Branded Rice,
Marine Products and Castor and its Deri vati ves . HUL enj oys international recognition
within Unilever and outside for its quality, r eliability and speed of customer ser vice.
HUL's Exports geography comprises, at present, countries in Europe , Asia, Middle
East, Africa, Australia, North America etc

Water
Pureit, a breakthrough offering of Hindustan Unilever (HUL), c omes with many
unique benefits complete protection from all water -borne diseases, unmatched
convenience and affordabilit y. Pureits unique Ger mkill Batter y technology kills all
har mful viruses and bacteria and removes par asites and pesticide i mpurities, gi ving
you water that is as sa fe as boiled. It assur es your famil y 100% protection from
water -borne diseases l ike j aundice, diarrhea, typhoid and cholera. Pureit not onl y
renders water micro -bi ologicall y safe, but al so makes the water clear, odourless and
good -tasting.

28

Corporate Responsibility
As in the earlier years, your Company continued to invol ve itself i n socia l welfare
initiatives across the Countr y, both through charity and social investment around
issues like education, health, nutrition and i nitiatives for the economic uplift ment of
the underpri vileged.
The company has commenced a pilot in its tea business, in partne rship with an NGO
(Partners in Change) to source tea directl y f rom small producers and thereb y i mprove
their livelihood. The effort of the Company i n i mproving water availability throu gh
soil conservation and water har vesting methods has borne good results. Company
believes that brands must be at the forefront of driving social change.
HUL is also running a rural health programme Lifebuoy S wasthya Chetana. The
programme endeavour s to induce adoption of hygienic practices among rural Ind ians
and ai ms to bring down the incidence of diarrhoea. It has already t ouched 84.6 million
people in approxi mately 43890 villages of 8 states. The vision is to make a billion
Indians feel safe and secure.

PRODUCT PROFILE:
Lux soap was first launched in 1916 as laundry soap tar geted spec ifically at
'delicates'. Lever Brot hers encouraged women to home launder th ei r clothes without
fear of satins and sil ks being turned yellow by harsh l yes that were often used in
soaps at the ti me. The flake -t ype soap allowed the manufacturer some leeway from l ye
because it did not need to be shaped into traditional cake -shaped l oaves as other soaps
were. The result was a gentler soap that dissolved more readily and was advertised as
suitable for home laundry use.
Lux toilet soap was introduced in 1925 as bathroom soap. The n ame 'Lux' was chosen
as a play on the word "luxury." Lux has been mar keted in several for ms, incl uding bar
and flake and liquid (hand wash, shower gel and cream bath soap).
Lux in step with the changing trends and evolving beaut y nee ds of the consumers,
offers an exciting range of soaps and Body Washes with un ique el ements to make
bathing ti me more pleasurable. One can choose from a range of skincare benefits like
firming, fairness and moisturising.
Lux stands for the promise of beaut y and glamour as one of Indi a's most trusted
personal care brands. Since its launch in India in the year 1929, Lux has offered a
range of soaps in different colours and world class fragrances. Lux is a beaut y soap of
film stars. Lux recognized the need for a compelling message about beaut y that would
resonate with women of toda y.
From the 1930s ri ght through to the 1970s, Lux soap colours and packaging were
altered several ti mes to reflect fashion trends. In 1958 fi ve colours made up the r ange:
pink, white, blue, green and yellow. People enj oyed matching their soap with their
bathroom colours.
29

In the early 1990s, Lux responded to the growing trend away from traditional soap
bars by launching its own range of shower gels, liquid soaps and moistu rizing bars.
Lux beaut y facial wash, Lux beaut y bath and Lux beaut y shower were launc hed in
1992.
In 2004, the entire Lux range was re -launched in the UK to include five shower gels,
three bath products and two new soap bars. 2005 saw the launch of three exc iting new
variants with dreamy names such as Wine & Roses bath cream, Glowing T ouch
and Spar kling Morni ng shower gels.

Lux has recentl y launched its two fruit extract variants New Lux Strawberr y &
Cream and Lux Peach & Cream contain a blend of succulent fruits & luscious
Chantilly cream. The most recent addition i n the brand is Lux Cr ystal Shine.

Product Categor y, Mar ket Segmentation, Target Mar keting and Positioning
This section describes the categor y of the selected product. The chapter is organized
into four sections. Section 1 states under whi ch categor y the p roduct falls. Section 2
describes how Unilever Bangladesh Ltd. diff erentiates the population and c ategori zes
them into different segments. Section 3 analyzes which segment the company ta r gets
and why they tar get that specific segment. Fi nally section 4 des cribes the process
through which the company tries to capture a place in the buyers mind i.e. the product
positioning method.

Product Categor y
LUX falls under the categor y of toiletry product as a beaut y soap.

Market Segmentation:
The company clai ms t hat LUX is the hi ghest selling beaut y soa p in Bangladesh.
Moreover some sur vey reports also reveal the same result.
Though LUX is the highest selling beaut y soap in Bangladesh, it do es not go for
traditional mass mar keting. Moreover as a beauty soap LU X does not even s egment its
mar ket according to gender.
Shows that Unilever Bangladesh Ltd. segments their mar ket accordi ng to geographical
areas.
The population of the country is segmented i nto three parts which are urban, sub
urban and rural area consumers.

30

Target Market:
LUX is not a hi ghl y expensi ve but an affordable product. That is why the company
targets urban and sub urban upper middle and middle class people who are th e second
highest population of segment of the countr y. From the segmenta t ion of custome r
according to SEC they target categor y A, B and C, because they are assumed to be
financially well -off and can afford to buy

Product Positioning:
Unilever Bangladesh Ltd obtained a good position in the buyer s mi nd through better
product attributes, price and qualit y, offering the product in a diff erent way than the
competitors do. The company offers i mproved quality of products in the industr y at
an affordable price wi th high branding, which ulti mately helps to position the product
in the bu yers mi nd as the best qualit y beaut y soap.
The mar ket share of the company in the beauty soap industr y is somewhere around
43%.Since in the beauty soap industr y all pr oducts are of same pri ce Unileve r cannot
provide its consumers with better price but it is in a great position i n reference with
its packaging, fragrances and product desi gning.

Tactical Marketing Tools


This chapter describes the way Unilever Bangladesh Ltd. use th e tactical mar keting
tools for mar keting LUX in Bangladesh. The cha pter comprises of four sec tions. This
section includes a tabl e that shows the location of the companys warehouses all
around the country. Fi nally section 3.4 discusses the promotional activities that the
company undertakes f or LUX.

Product:
LUX is an internationally renowned beaut y soap brand of Un ilever. Though
manufactured in Bangl adesh for the local market by Unilever Bangladesh Ltd, as an
international brand, it maintains an internati onal quality for the pr oduct. For mula
gi ven by Researc h and De velopment depart ments in foreign countri es, LUX is
produced in Banglade sh from i mported raw materials like sodium soap, gl ycerol and
different extracts according to flavors, comi ng from Unilever plants situated abroad.

LUX is offered in Bangladesh in s ix different flavors which are: LUX Ener gi zing
Honey, LUX Golden Glow, LUX Nature Pure, LUX Orchid Touch, L UX Al mond
Delight and LUX Aqua Spar kle. Taking into account the convenience of its customers ,
the company manufact ures all flavors of LUX in three di fferent sizes, 40gm, 80gm and
120gm.

31

Price:
Though Unilever Bangladesh gi ves its LUX customers a lot in t erms of the product
itself, it cannot provide a better pricing. This is due to some constraint s in the beaut y
soap industr y. Beaut y soap is a product with a vulnerable demand i n Bangladesh . A
change in price has a high risk of creating price war among the ri vals which will
eventuall y caus e a loss of profit. Its prices are al most equal to its competitor. Luxs
price with its maj or c ompetitor. Comp any car ries out research on competitors price
and brand loyalt y when it feels extreme necessaity of chaging price. The brand loyalt y
test is an explorator y r esearch which is known as Brand Health Check -Up (BHCU).

Place:
Unilever Bangladesh Ltd. has a huge distribution channel for L UX all over the
country as its sales reach more than 10 million pieces a year . The company h as six
huge warehouses, one in each di vision of Bangladesh, where the pr oduct goes after
they are manufactur ed at Kalurghat factor y.

The company does not use its own fleet of transport for distributing its product.
However , it has outsourced its distribution process to various thir d party distribu tors,
exclusivel y dedicated to Unilever Bangladesh Ltd. These distribut ors then suppl y the
product all over Bangl adesh to a huge number of retailers. Even though LUX targets
the urban and sub urban middle and upper mi ddle class people they are distributing
their products all over Bangladesh because of a recent increase in demand of its
product to all segment s of the population.

Promotion:
Unilever Bangladesh undertakes huge pr omot ional activities t o promote LUX which
has topped the beaut y soap industr y of Bangl adesh. It spends al most 20% t o 25% of its
Net Proceeds from Sales (NPC) of LUX for pr omotional acti vities for LUX 1 Its
certain annual promotional campai gns like LUX Channel i Superstar and LUX Channel
i Annual Cinema Awar ds has made the product a part of the glamou r world. Since the
1930s, over 400 of the worlds most stunning and sensuous women have be en proudl y
associated with Lux advertisements. They do not onl y promote LUX in Bangladesh for
the beaut y conscious f e males, it also promot es the brand for males and the company
proved that, by includi ng world famous male celebrity Shahrukh Khan for their
advertising campai gn.
Unilever Bangladesh Ltd spends a huge amount of mone y for promoting LUX through
TV commercials, newspaper advertisements and billboards. Mor eover it also
undertakes small promotional campai gns at di fferent schools, colleges, uni versiti es
32

and recreational par ks with winners of its Zonal Beaut y Contests. Till now
promotional acti vities of LUX ha s al ways been successful which has made it a
household common name and helped it reach al most one billion tak a sale value in the
year 2004 2.

The Market for LUX


For better comprehension of Unilever Pakistan, its mar ket ing strategy, product
quality, positioning and placement, we present here a comparati ve analysis of its
competitors. This part of the proj ect il lustrates the mar ket share of different
companies in the beauty soap industr y.

Market Share:
The beauty soap industry in Pakistan consist s of onl y seven maj o r producers. Unilever
Pakistan Ltd is operating in the industr y with its world famous brand L UX. Out of
these giant companies Unilever Pakistan Ltd is the mar ket lead er with a share of
around 43%. Other companies in the industr y are not as bi g as Unilever Pakistan Ltd
but they are posing thr eat to the company by a tendency of a gradual increase in their
mar ket share. Kohinoor Chemicals which is operating with the brand name Tibet is an
extremel y famous brand to the rural segment of the population and possess a
significant share in that segment w hich is the largest population gr oup in Pakistan.
Moreover Keya Cosmetics Ltd operatin g wit h the brand name Keya and Mar ks & All ys
Ltd operating with the brand name Aromatic are also uprisin g brands to both the r ural
and sub urban segment of the population.
Moreover a recent takeover of Aromatic by multinati onal consumer product giant
MARICO who operates with famous brands in other industries li ke Parachute Coconut
Oil is posing to be a t hreat to Unilever Paki stans mar ket share.

Integrated Marketing Communication

Promotion
The great Indian brand wagon started nearl y four decades ago. Great brands someti mes
outlast their ambassadors as proven by Lux which celebrated its 75th anni versar y in
India.
The first ambassador, Leela Chitnis featured in a Lux advertise ment which flagged
off the Lux wagon. She gave way to a galaxy of stars which includes Ma dhubala,
Nar gis, Meena Kumari, Mala Sinha, Shar mil a Tagore, Waheeda Rehman, Saira Banu,
Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi , Aishwar ya Rai and
Kareena Kapoor. The last frontier for mo st actors aspiring to stardom is becoming a

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Lux ambassador. The b rand has outlasted many soaps. From the beginning, Lux
became a household name across the countr y.

Sales Promotion
Sales promotion, a key ingredient in mar keting campai gns, consist s of a collection of
incentive tools, mostly short ter m, desi gned to sti mulate quicker or greater purchase
of particular products or services by consumers or the trade.Whereas advertising
offers a reason to buy, sales promotion offers an incenti ve to buy.

Pro minent Sales Promotion Schemes Used By LUX


Lux presented 30 gm gold each to the first three winners of the Lux Gold Star offer
from Delhi. According to the promotional off er that Lux unveil ed i n October 2000, a
consumer finding a 22 -carat gold coin in h is or her soap bar got an op portunity to win
an additional 30 gm gold. The first 10 callers ever y week got a 30 gm gold e ach. The
offer could be availed only on 100 gm and 150 gm packs of Lux soap.

Lux Star Bano, Aish Karo contest: All one needed to do was buy a special
promotional pack of Lux soap. The pack comes with a special scrat ch card. The 50
lucky winners and thei r spouses were flown down to Mumbai to live a day li ke
Aishwar ya Rai would. The y could also be gi ven gift vouchers worth Rs 50,000 from
Shoppers' Stop along with a n exclusi vel y designed Neeta Lulla sar i and a bea ut y
makeover by Michelle Tung, Aishwar ya's preferred designer and st ylist. The pice de
rsistance was a dinner date with Aishwar ya Rai herself.

Public Relations:
Not onl y must the company relate constructivel y to customers, suppl iers and dealers,
it must also relate to a large number of inter ested publics. A publi c is a ny group that
has an actual or potential interest in or i mpact on a companys ability to achieve its
obj ectives. PR invol ves a variety of programs designed to promote or protect a
companys i mage or its individual products.

LUX PR Acti vities


Press relations
Lux has been maintaining constant communicating wi th its customers and potential
customers, of the vari ous developments taki ng place in the brand by using press
relations.

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Events:
Lux celebrated 75 years of existence in a gr and way by un veiling Shahrukh Khan as
their latest brand ambassador. Kareena Ka poor, Juhi Chawla, Sridevi and Hema Malini
graced the event and made it special. All the stars have endorsed Lux in the past. The
event was held at the grand Intercontinental in Mumbai.

Li mited edition:
Coming up with li mited edition of the brand is also a way of at tracting attention
towards the brand. It creates a buzz and a feeling of ur gency to try out the pro duct and
helps in promotion of the brand. This strategy was also i mplemented by Lux by
bringing out li mited editions like Chocolate Seduction , Aromatic Glow, Festi ve Glow
and Haute Pink.

Labelling
The LUX Trade Character or Logo is present prominentl y on the package. A novel
metallic substrate packaging showcases the ingredients, and a female mo del is shown
on the pack. Also displayed gr aph ically are t he key ingredients.

Packaging
The colors are different for different variant s such as saffron for the saffron variant,
pink for the rose extracts etc.The Bars come in package si zes of 100g, 120g, 150 g

Point of Purchases:
The LUX is not gi ven a notable placement on the shel ves of di fferent retail shops &
depart mental stores for its sales promotion. Usuall y the compan y goes for wide
display in the stores where it potential for its product. Different eye -catching
decorations are made i nside th e store and in the showcase f or outsi de display. These
arrangement s are made with the assistance of the sales people of t he company.

Advertisements:
The message that the product reflects in its advertisements is the o ne that is usuall y
narrated by the corpor ate itself. Advertising is any paid for m of non -personal
presentation and promotion of ideas, goods and ser vices by an identified sponsor. Ads

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can be a cost effecti ve way to disseminate messages, whether to build a brand


preference or to educate people .
USP or the common thread through all the advertisements is the Presence of Movie
Stars through the ages. The product has been positioned on the basis of REFERE NCE
GROUP by using a cel ebrity popular at that point in ti me. Some amount of attribute
positioning by mentioning the vario us ingredients has also been done.

Lux campai gns have wooed millions of peopl e over the decades. Popularly known as
the beaut y soap of film stars, Lux has been an inti mate partner of the brightest stars
on the sil ver screen for decades. An ode to t heir beauty, an announcer of their
stardom, advertising campai gns on Lux have featured fil m stars across the nation,
promising their beaut y and complexion to or dinary women.

With top movie stars from Madhubala to Madhuri, fro m Babita to Karisma and
Kareena having endorsed the goodness of Lux over generations, it was na tural that the
brand has built equit y as the best beaut y soap in India.

From the beginning Lux, by using a leading film star of the ti me , has fulfilled the
consumers aspirations of using beauty soaps via the rationale if its good eno ugh for
a film star, its good for me. This later moved into a transfor mation role of having a
bath with Lux, which t ran sports the user into a fantasy world of icons, fil m stars and
fairy lands.

Change in communicat ion strategy


However , the communication was slowl y seen to be losin g relevance, as consumers
were beginning to question if the film star actually used the brand.
In addition to this, several competitive beaut y soap brands had b egun advertising
using si milar methods of communication. In this context, the global bran d team for
Lux developed a new communication strategy. This strategy bring out the star in you
for the first ti me moved the brand away from the long -r unning fi lm star route. The
film star still features in the new communication but not as her gor geous self but
rather as an alter ego/ proj ection of the protagonist (a regular girl), for a few seconds
of the entire ad. Thus, for t he first ti me the film star was used as a communicat ion
device and not as the main feature of the ad. The move away from the film star and
her fantasy world to a regular Lux user, with the focus on the protagonists star
quality, is a change from the nor ms set by Lux advertising in the past. With the new
communication strategy, the fil m star is used purely as a communication device to
portray star quality in ever y Lux user. Thi s can be si gnificantl y seen in the latest TV

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commercial of Lux Cr ystal Shine wher e Pri yanka Chopra is portrayed as a nor mal
woman.

This idea bring out t he star in you puts t he consumer at the heart of the brands
promise. This promise goes beyond the funct ional deliverables of soap, beyond
bathing and the bathroom to theworld ou tside. Its a world where with Lux on her
side, an ordinar y woman can i mpact her world with her own star quality.
This is a successful attempt to bring the brand closer to its users and to gi ve it a more
youthful and contemporary i mage.

Selection of Media:
There are number of Sources available for passing the product message. These are as
follows;

Television
Outdoor (Billboards)
Magazines
Newspapers
Brochures
Internet

Impact on Sales:
The company believes that ads do have adequate i mpact on s ales. In order to meet the
company policy of mai ntaining and strengthening the corporate i mage, the ads are
shown on television. T here is a long -ter m str ategy in the books of Unilever to disturb
the loose Soap mar ket. They usually show documentar y from ti m e t o ti me regarding
the flaws in loose Soap quality. It is usuall y shown without any di scrimination, i.e.,
without mentioning any Soap name or company name in the documentary.
Celebrity endorsements
Holl ywood
Since the 1930s, many well -known Holl ywood a ctresses have mar keted the soap to
women as a beaut y enhancer. Advertisement s have featured Dorothy Lamour, Joan
Crawford, Laurette Luez, Judy Garland, Cheryl Ladd, Jennifer Lopez, Eli zabeth
Taylor, Demi Moore, Sarah Jessica Parker, Catherine Zeta -Jones, Rachel Weisz, Anne
Hathaway, and Maril yn Monroe, among others. The first male to st ar in a Lux
advertisement was Hol lywood actor Paul Newman
Boll ywood
Today, the brand is sti ll heavil y advertised in India using Boll ywood stars.
Madhubala, Mala Sinha, Hema Malini, Sridevi, Madhuri Dixit, Juhi Chawla, Karisma
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Kapoor, Rani Mukerj i, Aishwar ya Rai, Amisha Patel, Kareena Kapoor and Tabu have
all been past brand ambassadors.
Priyanka Chopra is the present brand ambassador of Lux. In In dia Shahrukh Khan was
the first male in a Lux advertisement
Pakistan
Lux has been widel y advertised in Pakistan ever since the brand was introduced.
Pakistani models including Reema Khan, Meera, Aami nah Haq, Babra sharif and
various other leading models a nd actresses have been "Lux models" from ti me to ti me.
Lux remains the leadi ng soap brand in Pakistan, representing the stylish class of
Pakistan. Things started with a TV show called Lux St yle Ki Duni ya, now with the
country's leading models and actors ta king part in the annual Lux Style Awar ds ever y
year. Ali Zafar the famous Pakistani Singer has become the first male model for Lux.

Other countries
Lux soap is ver y popular in Nepal and the br and appointed Nepali model -t urned actress Jharana Baj racharya to be the Lux Gi rl in the Summer of 2003. After that, she
appeared on many TV commercials. Ni gerian actress Genevieve Nnaj i appeared as the
face of Lux soap in 2004. Two decades earlier, singer Patti Boulaye had been
Ni geria's face of Lux. In Norway duri ng the 1950s and 1960s, Lux advertisements
featured fictional Italian actresses. Lux soap is also a categor y leader in Pakistan, the
brand being synonymous with glamour. Whil e initially it was also mar keted as the
beauty soap of the film stars, recentl y it is f ocusing more on bringing out the star in
ordinary people. Current brand ambassador i s Iman Ali.

Soap operas Lux soap was known for sponsoring several popular radio series in the
1930s and 1940s including Lux Radio Theater that was hosted and direc ted by Cecil
B. DeMille and the Lif e and Love of Dr. Susan an earl y soap opera. This radio
sponsorship made the brand fairly well -known in the United States while the shows
were produced, though the soap has since disappeared from mainstr eam American
mar kets and is no longer the recogni zed brand it once was. Many Hollywood stars
were lured to appear on Lux Radio Theatre not onl y due to its hi gh quality, but that
the actors and actresses received monetary payment instead of free samples of the
product. From 1950 to 1959, Lux sponsored Lux Video Theatre and Lux Playhouse on
television.

Public Relations:
In order to build healthy relations with the consumers, the company has established a
consumer depart ment t o manage the complai nts of the end -users. A legal depart ment is
also dealing with the l egal issues and media war. If any news is published in a
newspaper that har ms the product i mage, a persuasive message is published in that
newspaper to counter t he rumor.
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Sponsoring Events:
The company goes for spon soring events in order to hei ghten the company and brand
image.
Mostly the company goes for financing such kind of events in whi ch its product has
got some r oom to buil d likeness. The company also goes f or sponsoring fashion shows
in different cities.

Distribution:
LUX goes for indirect channel of distribution. The hierarchy of the distribution
channel is as follows.

Manufacturer
Distributor
Retailer
Consumer

The distribution strategy pursued by the Uni lever is intensi ve. It means that the
product distribution is covering wide mar ket . There are regional headquarters of the
company in all the bi g cities of the countr y. There is a distributor in each bi g cit y. In
order to reach remote areas, a distributor engages a sub -distributor for a small area.
The company is directly linked with the mai n distributor and the sub -distributor has
no such direct contact with the company. The company provides the Life Buoy
inventor y to the main distributor that is further dispatched to retai lers and sub distributors.
There is a regional manager of Unilever that employs Area Sales Manager for a
specific area then comes the Territory Sales Officer (TSO). TSO is directly linked
with the distributors t o set and achieve targets. The targets var y from area to area and
are set on the basis of history of the area sal es. As the sales tar gets depend upon the
area history of sales; these are usuall y achievable. If these tar gets are facing some
kind of setback, the pr omotional schemes based on areas are announced as discussed
earlier.

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BIBLIOGRAPHY
http://www.managementparadise.com/vinola/documents/1894/integrated-marketing-communicationamp-case-study-on-bajaj-pulsar/
http://www.managementparadise.com/sayed123/documents/15118/project-on-imc-of-lux/
www.hul.co.in/brands/lux.asp
www.lux.com
www.wikipedia.org

Advertising and Promotion George E Belch & Michael A Belch

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