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Segmentation, Micro & Macro Environments of Lux

Assignment

Submitted To: Madam Anushey Submitted By: Muhammad Umair Sheikh Student Card: NI-F7-BBA-212

SEGMENTATION OF LUX
Segmentation Variables
Geographic World region Country Cities Density Climate Demographic Age Gender Family size Family life cycle 15-50+ Female 1-2, 3-4, 5+ Young, Single; Young, Married, no children; Young, Married with children; Older, Married with children; Older, Married with no children under 18; Older, Single; Other Rs.20,000+ From middle class to upper class Schools, Colleges, Universities Major religion of Islam, Christianity and Hinduism and small percentage of others Asian Pakistani Middle class, Upper class. Actualizes, Fulfilled, Believers, Achievers, Strivers, Experiences makers and Strugglers Asia Pakistan All major cities of Pakistan Urban Hot and Dry

Data

Income Occupation Education Religion Race Nationality Psychographic Social class Lifestyle Behavioural Occasions Benefits User status

Parties, Birthdays, Sports and Regular Occasions Quality, Taste, Economy, Health First time user

Attitude towards product

Positive

Key facts
First mass marketed toilet soap launched in 1924 Sold in over 100 countries Market leader in various countries including Saudi Arabia, Brazil, India Lux Almond Delight comes with the deep moisturization of exotic Peach, Cream and precious Almond Oil. Lux Nature Pure has nourishing oil of Cade and cucumber extracts for a radiant and clear skin. Lux Orchid touch comes with the delicate touch of rare orchids and precious Jojoba Oil, for a softer and fragrant skin. Lux Energising Fruit incorporates the beauty secrets of Fruit Extracts, rich Milk Cream and Honey, for a fresh renewed feeling.

From Luxs range


Almond delight

Orchid touch

Energising fruit

Aqua sparkle

Lux in Pakistan

We all want to be pampered, to look and feel great, to enjoy that moment when anything seems possible. And that's just what Lux offers you on a daily basis at a price you can afford. Lux has been winning hearts of Pakistani consumers for 50 years. Throughout this time, Lux has been closely associated with many of the most glamorous and sensual women of the age. Marilyn Monroe, Demi Moore and Catherine Zeta-Jones are some of the stars who've appeared in Lux ads. In Pakistan, leading celebrities like Babra Sharif, Meera and Aaminah Haq have endorsed the brand.

Market Of Lux

Lux has emerged as the largest selling product from the HLL stable in terms of value. Consumers spent close to Rs 1,300 crore on the brand in 03, up 5% from the previous year. According to HLL, Luxs market share at 17% in 03 has

risen 3% over 02. However, the share of Lux International in the overall Lux franchise is less than 2%.

Noode is a skin care line for woman founded by Seth Ratner in 2001, in New York City, offering range of twelve skin care products clinically tested and approved by dermatologist to produce products infused to maintain and prevent aging instead of repair. These products are developed by innovative technology, in attractive packaging to attract the target customers at affordable prices. The product line was designed specially to meet the need of Generation Me market which is a combination of Generation X and Generation Y. The founder of Noode Mr. Seth Ratner identified that this generation was concerned more about me hence the entire product line has me. In addition Noode also conducts different skin care workshops and sampling to promote their products to targeted market and help customer get better understanding for skin protection. Noode embodies modern beauty setting sight on the market of 15 to 29 year old women. The product has an appealing market in US also due to their color full packing and funky writings. Currently operating in US, Noode in expedition to boost the brand awareness internationally and sales revenue has recently planned to expand and launch their product line in strong market of UAE. Due to the fact of profit margins being high in this business in U.A.Es potency in the cosmetics business is lies on quality products at lower -prices and low import duties. In order to achieve marketing objective several characteristics were identified to target UAE market.

MICRO ENVIORNMENT
The analysis of the competitiveness that is prevailing for Noode in the UAE market is made within the context of Porters five forces and is expected to highlight the strength and weaknesses of each force in order to understand their impact

1). The Company: Noode 2). Supplier: Jebel Ali Free Zone

3). Marketing Intermediaries: Noode initially plans to have products

displayed at various departmental stores and pharmacies like Carrefour, Spinney, Lulu hypermarket etc as well as in famous beauty saloons like VLCC, Nail bar, Cleopatra spa and beauty outlets like Paris Gallery in Dubai, U.A.E. Noode also plans to display the products at leading pharmacies. As these outlets and location are in ideal spots which will help target potential customers for skin care product.

4). Customers: Young women consumers between the ages of 15 to 29 5). Competitors: The main competitors to Noode are AVON, Nevea, Body shop etc.
In order to successfully compete with these market rivals Noode is mainly concentrating on providing products at lower prices and advertising aggressively which will play a vital role in attracting the targeted customers.

6). Publics: There are a lots of public are included. Such as channels, investment
houses, radio stations, newspapers, minority groups, general public etc and also internal publics include workers, board of directors, managers and so on.

Marketing Objective: Noode strategy is to penetrate into existing & new markets
by developing quality skin care products to ensure that all the products provided by competitors are offered to affluent customers. To help penetrate into new markets we need to develop new value added products to attract the customers.

MACRO ENVIORNMENT
Every organization should understand their operating environment as it allows them to take advantage of the opportunities and minimize threats. The following pest analysis illustrates the environment of UAE in which Noode will be operating.

1). Demographics Forces


Age: The potential customers of Noode would be of age group of 15 29 years. Income: As for the income levels, Noode targets the middle class to the upper
class.

2). Political and Legal: UAE is a low crime and politically stable economy; as a

result foreign investors are attracted to UAE as diversification strategies. The UAE government is on a regular effort improving business relations with trade and investment partners in US and Asia.

3). Economical: Increase in Oil prices and non oil based revenue witnessed a high

growth rate of the UAEs The UAE is strategically located in the midst of one of the richest

regions and is served by over 120 shipping lines and linked via 85 airlines linked to over 130 destinations making it an attractive industrial hub coupled with No corporate and income tax, low custom duty of 4% and no foreign exchange controls makes it more attractive for foreign investors. High inflation rates and fear of possibilities of exchanges rates de-pegging against the US$ keeps the investors away from making huge investments in the UAE economy.

4). Cultural Forces: 5). Natural Forces:

Due to Islamic Cultural values people prefer to use products

made from Halal ingredients. Due to any disaster, earthquake and some shortage by the marketers or suppliers so its effected our product and market.

Pest Analysis
Political & Legal Open Economic Policies No Exchange controls Emiratization Regional political Instability Low Crime economy No political agitations, strikes, etc Stable government and no expected change Planned in the near future. Social Arabic Traditions & Islamic Values Multinational workforce Increasing population Cosmopolitan life style Economical High Oil Prices No Corporate or Personal Income Taxes High Inflation Strategic Location Possibility of exchange rate de-pegging From US$

Technological High investment from Government for telecom, energy and infrastructure Development of technology High speed internets, etc. Virtual Banking systems.

6). Social: Arabic traditions and cultures are respected by affluent nationals. A notable
concern is on the nations preference of Islamic value based products like Sharia complaint Islamic Banking products, Islamic Sukuks, etc. The economy has a multinational workforce and cosmopolitan lifestyle which encourages foreigners in investing in the economy as compared to other countries in the region. People can follow any religion and culture.

7). Technology: There is huge investment from the government to develop the

infrastructure, good telecom system, internet facilities, etc. The implementations of the latest technologies to support the banking system have made UAE as advanced as any other developed economy in the world.

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