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SWOT ANALYSIS OF

LUX
AND

DOVE
 SAJJAD HUSSAIN ( pUrki ) 72
 BBA (3RD)
 SEC: (B)
 DATE: 10/MAY/2010

 MISS.AFSHAN SEHAR

FEDERAL URDU UNIVERSITY


KARACHI

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SWOT ANALYSIS

WHAT IS SWOT ANALYSIS

The SWOT (strengths, weaknesses, opportunities, and threats)


analysis has been a useful tool for industry. The process of utilizing
the SWOT approach requires an internal survey of strengths and
weaknesses and an external survey of threats and opportunities.

SWOT is a simple, easy to understand technique. It can be used an


end in itself. The purpose of this paper is to demonstrate how SWOT
can be used by administrators to analyze and initiate new program
offerings in vocational education.

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SOWT ANALYSIS OF LUX & DOVE

STRENGHTS

STRENGHTS OF LUX
 Strong Market Research (door to door sampling is done once a year in Urban and Rural
areas)
 .Many variants (Almond Oil, Orchid Extracts, Milk Cream, Fruit Extracts, Saffron,
Sandalwood Oil, and Honey to name a few)
 Strong sales and distribution network backed by HLL
 Strong brand image
 Positioning focuses on the attractive beauty segment
 Dynamically continuous innovation of the product and brand rejuvenation – new variants
Aromatic Glow and Chocolate Seduction and Lux White Spa body wash) and innovative
Promotions (22 carat gold coin promotion – ‘Chance Hai’)
 Perceived to have high value for money (strong brand promotion but relatively lower price
Which is a winning combination in the popular segment?)

STRENGHTS OF DOVE
o Unconventional strategy

o Effective advertising, Free publicity

o Continuously evolving the campaign

o Strong emotional touch

o Cross-selling Possibilities

WEAKNESSES

WEAKNESSES OF LUX
 Lux is mainly positioned as beauty soap targeted towards women, hence it lacks unisex
appeal
 Usage rate/ wear rate is high and is generally mushy and soggy
 Some variants like the sunscreen, International variant did not do well in the market

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 Certain advertisements like the recent one with Shah Rukh Khan resulted in controversial
interpretations of the message of the advertisement and lead to some loss of focus
 Stock out problems - replenishment time is high in semi-urban/rural areas

WEAKNESSES OF DOVE
 Contradictory in nature

 Objectification of women

 Women featured were comparatively slim

 Use of idealized images in other brands under the same flagship

 Contradictory Japanese campaign

OPPORTUNITIES

OPPORTUNITIES OF LUX
 Soap industry growing by 10% in India
 Beauty segment’s Compounded Annual Growth Rate (CAGR) is very high. An indication
of this is that Fair and Lovely’s segment is increasing at a fast rate - LUX must reinforce
its presence in the beauty segment
 More promotions like price-offs and samples
 Retentive strategy required as the soap segment is in the mature stage of its product life
cycle
 Line extension – probably with more variants catering to the beauty segment like natural,
herbal soap etc
 Liquid body wash is currently in the growth stage – Lux should come out with more
variants in this segment

OPPORTUNITIES OF DOVE
 Target male customers

 Maintain better standards of quality



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 Unified advertising throughout the globe

 Continuous innovation

THREATS

THREATS OF LUX
 New entrants/local competitors/MNCs would increase the competition (Camay, P&G)
 High internal competition – Pears also catering the beauty segment (also from HLL
stable)
 Excessive dependence on beauty segment makes Lux vulnerable to changing customer
tastes
 Technological change makes the existing products obsolete – Lux should focus on
technological innovations like Body Wash

THREATS OF DOVE
 Risk of being a brand for “fat girls”

 Involved marketing risk

 Copy by the competitors

 Undermining the aspiration of consumers

 Sustainability of campaign in long run