Post on 13-Apr-2018
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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
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DECLARATION
I, Raveena Udasi, student of M.Com here by declared that the research
report enti tled “INTEGRATED MARKETING COMMUNICATION (LUX) ” is
completed and submitted under the guidance of is my 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 University for the purpose of
compliance of any requirement of any examination or degree.
Raveena Udasi
M.Com Sem I
ROLL NO. 15051
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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 Principal
_____________________ ___________________
Co-coordinator External guide
Date:
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ACKNOWLEDGEMENTS
A project is a golden opportunity 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 extraordinarily 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‘ Ma‘am .
I would also like to thank everyone who took active involvement in helping me
with my project report without whom, it would not have been possible.
RAVEENA UDASI
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TABLE OF CONTENT
SR. NO. TABLE OF CONTENTS
PG. NO.
1 Introduction to Marketing Communication 6
2 An Overview of IMC 8
3 Benefits & Barriers of IMC 10
4 Golden Rules 11
5 DAGMAR 14
6 Hindustan Unilever Limited : LUX 16
7 Executive Summary 18
8 Major Players 19
9 Competitor Analysis 21
10 Company Profile : HUL 23
11 Product Profile : LUX 29
12 Integrated Marketing Communication of Lux 33
13 Bibliography
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INTRODUCTION INTEGRATED MARKETING
COMMUNICATION
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Introduction
In most of the companies the promotional function was dominated by mass media,
advertising for many years. Companies relied primarily on their advertising agencies
for guidance in nearly all the areas of market ing communication. Most marketers did
use addit ional promotional and marketing communication tools but sales promotion
and direct marketing agencies as well as package design firms were generally viewed
as auxil iaries‘ services and often used on a per project basis. Public relations agency
was used to manage the organisations publici ty, image and affairs with the relevant
publics on an ongoing basis but they were not viewed as integral part icipants in the
marketing communication process.
Many marketers bui l t strong barriers around the various mark eting and promotional
functions and planned and managed them as separate practices with the different
budgets, a different view of the market with different goals and objectives. But these
companies failed to recognise that the wide range of marketing and promotional tools
must be coordinated to communicate effectively and present a consistent image to
target market.
During the 1980‘s , many companies began taking a broader perspective of
marketing 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 marketing an public relation which began challenging the
advertising role as the dominant form of marketing communication{I MC}, which
involves coordinating the various promotional elements and other marketing activit ies
that communicate with the firm‘s customers
Definition
Integrated marketing communication is a strategic business process used to plan,
develop, exec cute and evaluate coordinate, measurable persuasive brand
communications programs over t ime with customer‘s consumers, prospectus,
employees, associates and other targeted relevant external and internal audiences. The
goal‘s to generate both short term financial r eturns and build long-term brand and
shareholder value.
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AN OVERVIEW OF INTEGRATED MARKETING COMMUNICATION
Advertising has much strength l ike reaching mass audiences, creat ing awareness,
building preference, etc, but i t also has major weaknesse s l ike targeting individual
consumers, making them believe a message and pushing them to action. Thus, i t has to
be combined with that of other communication elements such as direct marketing,
sales promotions, and public relation. The various promotional tools involved in
product promotion comprise the promotional mix of an organization. They include
advertising, personal sell ing, sales promotion, public relations, and direct marketing.
Integrated Marketing Communication (IMC) is the judicious and efficien t use of the
promotional tools so that a universal , clear, and effective promotional message is
communicated amongst the target audience. The concept includes online and offl ine
marketing channels. Online marketing channels include any e -marketing campaigns or
programs, from search engine optimisation SEO, pay -per click, affi l iate, and email ,
banner to latest web related channels for webzine, blog, micro -blogging, RSS, pod
cast , and Internet TV. Offline marketing channels are tradit ional print (newspaper,
magazine), mail order, public relations, industry relations, bil lboard, radio and
television.
There are five basic tools of integrated marketing communication:
Advertising:
This tool can get your messages to large audiences efficiently through such av enues as
radio, TV, Magazines, Newspapers (ROP), Internet, Bil lboards and other mobile
technological communication devices . This method can efficiently reach a large
number of consumers, al though the costs may be somewhat expensive.
Sales Promotion:
This tool is used through coupons, contests, samples, premiums, demonstrations,
displays or incentives. It is used to accelerate short -term sales, by building brand
awareness and encouraging repeat buying.
Public Relations:
This integrated market ing communications tool is init iated through public
appearances, news/press releases or event sponsorships, to build trust and goodwill by
presenting the product , company or person in a posit ive l ight.
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Direct Marketing:
This tool will uti l ized email , mail , catalogs, encourage direct responses to radio and
TV, in order to reach targeted audiences to increase sales and test new products and
alternate marketing tactics.
Personal Sell ing:
Setting sales appointments 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, init iate this IMC tool.
Integrated Marketing Examples
Nike is a great example of a company that has fully embraced the concept of
integrated marketing. Their integrated approach includes tradit ional advertising
(bil lboard, magazine, and television); sponsoring sporting events and players such as
the Super bowl and Tiger Woods; and engaging in online marketing init iat ives by
allowing consumers to customize their Nike shoes. They also spend a great deal of
money in search marketing. Nike 's approach allows them to communicate their
message consistently across all media outlets ; and at the same time share that message
at every customer touch point; that is, use Nike products and you will increase your
performance regardless of what sport you are involved in.
Another example is HP's "The Computer is Personal Again" campaign. They uti l ized
many forms of media with great consistency, and cap italized on each of the media 's
individual strengths.
The role of IMC in Branding:
One of the major reasons for the growing importance of the IMC over the past decade
is that i t plays a major role in the process of developing and sustaining brand ident i ty
and equity. Building and properly managing brand equity has become a priori ty for
companies of al l the sizes, in all types of industries, and in all types of markets. With
more and more products and services compet ing for consideration by customers who
have less and less t ime to make choices, wel l -known brands have a major competit ive
advantage in today‘s market place. Building and maintaining brand identi ty and and
equity requires the creation of well –known brands that have favorable, strong and
unique association in the minds of the consumer.
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Benefits of IMC
Although Integrated Marketing Communications requires a lot of effort i t delivers
many benefits.
1. It can create competit ive advantage, boost sales and profits, whi le saving money,
t ime 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
loyalty with customers. The abil i ty to keep a customer for l ife is a powerful
competit ive advantage.
3. IMC also increases profits through increased effectiveness .
4. Carefully l inked messages also help buyers by giving t imely reminders, upda ted
information and special offers which, when presented in a planned sequence, help
them move comfortably through the stages of their buying process
5. IMC also makes messages more consistent and therefore more credible..
6. Finally, IMC saves money as i t el iminates duplication in areas such as graphics and
photography since they can be shared and used in say, advertising, exhibit ions and
sales l i terature.
Barriers to IMC
1. Functional si los: Rigid organisational structures are infested with manag ers who
protect both their budgets and their power base. Sadly, some organisational structures
isolate communications, data, and even managers from each other. For example the PR
department often doesn‘t report to marketing. The sales force rarely meets th e
advertising or sales promotion people and so on. Imagine what can happen when sales
reps are not told about a new promotional offer
2. Stifled Creativity: I t shouldn‘t matter whose creative idea i t is , but often, i t does.
An advertising agency may not be so enthusiastic about developing a creative idea
generated by, say, a PR or a direct marketing consultant.
IMC can restrict creativity. No more wild and wacky sales promotions unless they
fi t into the overall marketing communications strategy.
3. Time Scale Conflicts: Add different t ime scales into a creative brief and you‘ll see
Time Horizons provide one more barrier to IMC. For example, image advertising,
designed to nurture the brand over the longer term, may conflict with shorter term
advert ising or sales promotions designed to boost quarterly sales.
4. Lack of Management Know- how: A survey in 1995, revealed that most managers
lack expertise in IMC. But i ts not just managers, but also agencies .
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GOLDEN RULES:
Despite the many benefits of Integrated Marketing Communications (or IMC); there
are also many barriers. Here‘s how you can ensure you become integrated and stay
integrated – 10 Golden Rules of Integration
1. Get Senior Management Support for the init iat ive by ensuring they under stand the
benefits of IMC.
2. Integrate at Different Levels of management. Horizontally – ensure that al l
managers, not just marketing managers understand the importance of a consistent
message – whether on delivery trucks or product quali ty.
3. Ensure the Design Manual or even a Brand Book is used to maintain common visual
standards for the use of logos, type 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 First . Wrap communications around the customer‘s buying
process. Identify the s tages they go through before, during and after a purchase
7. Build Relationships and Brand Values. Al l communications should help t o develop
stronger and stronger relationships with customers.
8. Develop a Good Marketing Information System which defines who needs what
information when.
9. Share Artwork and Other Media. Consider how, say, advertising imagery can be
used in mail shots, exhibit ion stands, Christmas cards, news releases and web sites.
10 Be prepared to change i t al l . Learn from experience. Constantly search for the
optimum communications mix.
Importance of objectives:
Advertising and promotional objectives are needed for several reasons, including the
functions they serve in communication, planning and decision -making and
measurement and evaluation.
Communications: Many people are involved in the planning and developm ent of an
integrated marketing communications programmed on the client side as well as in
various promotional agencies. The advertising and promotional programme must be
co-coordinated within the company, inside the ad agency, and between the two. Any
other parties involved in the promotional campaign, such as the public relations or the
sales promotion firms, research specialist or media buying services must also know
what company hopes to accomplish through i ts marketing communication programme.
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Planning and Decision Making: when the promotional objectives are specific they
guide the development of the integrated marketing communications plan. All the
phases of the firm‘s promotional strategy should be based on the established
objectives, including budgeting, creative and media decisions as well supported
programmes such as direct marketing, public relations, sales promotion or reseller
support . Decision making becomes easier if the objects are meaningful.
Measurement and evaluation of Results: one of the important reasons for sett ing
specific objectives is that they provide a benchmark against which the success or
failure of the promotional campaign can be measured. Without specific objectives, i t
is extremely difficult to determine what the f irm‘s advertising and promotional efforts
accomplished. The promotional planners provide measures that can be used to evaluate
the effectiveness of the marketing communication programme. Comparing actual
performance against the measurable objectives is the best way to determine if the
return justifies the expense.
Promotional Objectives:
To increase brand awareness by 25%, Build Awareness about the product. Tell the
market who they are and what they have to offer. Create Interest – Moving a customer
from awareness of a product to making a purchase can present a significant challenge.
Provide Information, Stimulate Demand, once a purchase is made, a marketer can use
promotion to help build a strong relationship that can lead to the purchaser becoming
a loyal customer. For instance, many retail stores now ask for a customer‘s email
address so that follow-up emails containing addit ional product information or even an
incentive to purchase other products from the retailer can be sent in order to
strengthen the customer -marketer relationship.
Communications Objectives:
Some common market ing communication objectives include:
1. Create a brand awareness for your company
2. Defining a need the product or service can fulfi l
3. Encouraging action from the target
Sales Objectives:
Many managers believe that monies spent on advertising and othe r forms of
promotion should produce measurable results, such as increasing sales volume by a
certain percentage or increasing the brand‘s market share.
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Advertising Strategies
Information, Dissemination/Persuasion: comparative ads attempt to get consumers to
believe that the sponsoring product is better . Although these are frequently disl iked
by Americans, they intend to be among the most effective ads in the U.S.comparative
advertising is i l legal in some countries and is considered very inappropriate cult urally
in some societies, especially in Asia.
Fear appeals: try to motivate consumers by tell ing them the consequences of not
using a product. Mouthwash ads, for example, talk about gingivit is and tooth loss can
result from poor oral hygiene. It is impor tant, however, that a specific way to avoid
the feared st imulus be suggested directly in the ad. thus, simply by using the
mouthwash advertised, these terrible things can be avoided.
Classical conditioning: a more favourable brand image can often be creat ed among the
consumer when an association to a l iked object or idea is created.
For e.g. , an automobile can be paired with a beautiful woman or a product can be
shown in a very upscale sett ing.
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 the consumer‘s
attention.often,the humour actually draws at tention away from the prod uct-people will
remember what was funny in the ad but not the product that was advertised. Thus, for
ads to be effective, the product advertised should be an integral part of what is funny.
Repeti t ion: whatever specific objective is sought, repeti t ion is cri t ical . This is
especially the case when the objective is to communicate specific information to the
customer. Advertising messages, even simple ones are often understood by consumers
who have l i t t le motive to give much attention to advertisements to wh ich they are
exposed. Therefore, very l i t t le processing of messages is l ikely to be done at any one
t ime of exposure.
Celebrity Endorsements: celebrit ies are l ikely to increase the amount of at tention
given to an advertisement. However; these celebrit ie s may not be consistently
persuasive. The elaboration l ikelihood model discussed below ident ifies conditions
when celebrity endorsements are more l ikely 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 tel ls that advertising has to perform a
particular communication task and the task has to be accomplished among a well
defined audience within a specified period of t ime. Following are the steps,
Awareness: an individual starts at some point by being unaware of a brand‘s presence
in the market. The init ial communication task of the brand is to increase consumer
awareness of the brand.
Brand Comprehension: Knowledge about the product or the organization is necessary.
This can be achieved by providing specific information about key brand attr ibutes. In
attempting to persuade people to try a different brand of water, i t may be necessary to
compare the product with other mineral water products and provide an a ddit ional
usage benefit , such as environmental claims. The ad of Ganga mineral water, featuring
Govinda, which banked on the purity aspect. They related the purity of the water with
that of r iver Ganga.
Conviction: By creating interest and preference, buyers are moved to a posit ion where
they are convinced that a part icular product in the class should be t r ied at the next
opportunity. To do this, audience‘s beliefs about the product have to be moulded and
this is often done through messages that demonstrate the product‘s superiori ty over a
rival or by talking about the rewards as a result of using the product. For e.g., many
ads l ike Thumbs Up featured the reward of social acceptance as ‗grown up‘. It almo st
hinted that those who preferred other drinks were kids.
Action: involves some move on the part of the buyer, such as trying a brand for the
first t ime, visi t ing showroom or requesting information. For eg, Tupperware, Aqua
Guard, are famous in Indian ci t ies as a result of i ts personal sell ing 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 given period of t ime.
o A specific Task: The second importance concept of DAGMAR approach is that the
advertising goal should be specific.
Measurable Task: To indicate exactly what appeal or image is to be communicated
and to specify the measurement procedure.
Benchmark: i t‘s a standard or a point of reference which can be used to determine the
success or failure of an ad campaign. President Lincoln has been quoted as saying, ―If
we could first know where we are & whither we are tending, we could better judge
what to do and how to do i t .‖ Benchmarks can s uggest how a certain goal can best be
reached.
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Target Audience: i t‘s important to define the target audience.e.g. When a new brand
of fashion garments are introduced, a common consumer will respond much differently
as compared to a consumer who maintains a certain l ifestyle.
Time Period: in sett ing advertising objectives t ime period should be specified within
which the objectives must be achieved. The t ime period can range from a few days to
a year or more. Most of the ad campaigns specify t ime periods fo r a few months to a
year depending upon the si tuation and type of response expected.
Writ ten Goals: Finally, goals should be committed to paper.
Limitations of DAGMAR :
Sales Oriented Performance : DAGMAR approach is considered to be successful if th e
sales increase and i t is considered as a failure if increase in sales is not achieved.
Partial Assessment : the DAGMAR approach assesses the impact of ad campaign in a
quanti tat ive term, i t does not explain how to improve quali tat ive representation.
Unsuitable to Small Advertising: only large advertisers with financial stabil i ty can
allocate funds to collect the information. Small f irms cannot afford to do i t .
Non-Comprehensive Study : i t 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
impulsive purchaser.DAGMAR does not explain impulsive purchaser.
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HINDUSTAN UNILEVER LTD: LUX SOAP
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ABSTRACT
Hindustan Unilever Ltd. is a well -known and largest FMCG company in India. HUL
has always revamped i ts products to meet the changing needs of the consumer without
compromising on the quali ty. This report deals with one of i ts premier brands "LUX".
HUL leads the market in the toilet soap category with 54.3% market share. Lux has
inched up to be on par with Lifebuoy in
HUL's soaps portfolio. The Lux brand now has an almost equal market share as
Hindustan Lever 's largest sell ing soap brand - Lifebuoy. This report gives an overview
of the history of the company and the brand "Lux", the various strategies adopted to
survive in the market for over 75 years and the various competing brands. The
promotional activit ies adopted, the brand's st rengths and weaknesses , threats faced are
also analysed. The FMCG category is always a batt leground for all the competing
firms and the bathing soap category is no different. With more firms entering the
market, maintaining the customer base is not very easy. Within six months, ITC's soap
products have been able to capture 1.75% of the market 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 Bangladesh
chapter of Unilever, where the company holds 60.75% share whereas the Government
of Peoples Republic of Bangladesh holds 39.25% share. Unilever‗s one of the m ost
popular brand is LUX. They segments LUX.‗s market according to geographical
locations. It further differentiates these segments into Socio Economic Cluster (SEC)
which takes into account the cri teria of education and profession which ult imately
measures the financial abil i ty of consumers. The cluster is divided into five parts
start ing from A to E. Unilever targets the urban and sub urban upper middle class and
middle class segment of the population, who falls under A to C of SEC.
Tactical marketing tools, 4P‗s, are extensively used by the company to market LUX.
Though LUX is produced in Bangladesh, Unilever Bangladesh maintain s the same
standard all around the globe. The product is available in six different fragrances
under three different s izes. Since the demand for beauty soap market is to a great
extent oligopolist ic, variations in price lead to price war which can eventually break
down the company‗s market share. Thus Unile ver cannot provide a better price than
i ts competitors. But the price is affordable by most of the people. Unilever
Bangladesh has outsourced i ts distribution channels to third party distributors which
allow them to distribute LUX in massive bulks amounting to around ten mill ion
pieces. It undertakes the largest promotional activit ies in the beauty soap industry.
The beauty soap industry has a few major producers of which Unilever holds market
share of sl ightly less than 50%. Other competing brands l ike Tibbet, Aro matic and
Keya have started to have a strong consumer base, but LUX.‗s product features
distribut ion and promotional activit ies have created high brand loyalty for which i t is
st i l l the market leader. Unilever, with the aid of i ts heavy promotional activit ies, has
been able to penetrate the market. But the other producers in the industry are posing a
threat towards Unilever‗s market share as they have moved towards the rural masses
of the population. Therefore, Unilever Bangladesh should undertake further steps such
as moving towards the rural and/or poorer segment; at tract children (by making a
special product for kids) and other innovative promotional activit ie s to retain i ts
command in the industry.
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Industry analysis
The toilet soaps market is estimated at 530,000 tpa includin g small imports. The
market is l i t tered over with several , leading national and global brands and a large
number of small brands, which have l imited markets. The popular and premium brands
include Lifebuoy, Lux, Cinthol, Liri l , Rexona, and Nirma.
Toilet soaps, despite their divergent brands, are not well different iated by the
consumers. It is , therefore, not clear if i t is the brand loyalty or experimentat ion lured
by high volume media campaign, which sustain them. A consequence is that the
market is fragmented. It is obvious that this must lead to a highly competit ive market.
Toilet soap, once only 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 norm impacted as i t is by a greater concern for hygiene. Increased
sales revenues would also expand from up gradation of quali ty or per unit value.
As the market is const i tuted now, i t can be divided into four pri ce segments: premium,
popular, discount and economy soaps. Premium soaps are estimated to have a market
volume of about 80,000 tonnes. This translates into a share of about 14 to 15%. Soaps
form the largest pie of the FMCG Market with bathing & toilet soaps accounting for
around 30% of the soap market, by value. Currently, the soap industry is divided into
three segments namely Premium, Popular and Economy/ Sub popular.
To fight competit ion, major players Hindustan Unilever Ltd ( HUL), Godrej Consumer
Products Ltd (GCPL) and Wipro Consumer Care & Lighting are now dr awing up fresh
game plans. And the accent is clearly on innovation to gain mind share as well as
market share in this overcrowded category.
Major Players
Hindustan Unilever Ltd.
With over seven brands — LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE
and PEARS — has 54.3% share of the overal l soap market. HUL is India 's largest Fast
Moving Consumer Goods Company; i ts journey began 75 years ago, in 1933, when the
company wasfirst incorporated. The company stirring the l ives of two out of three
Indians with over 20 dist inct categories in Home & Personal Care Prod ucts and Foods
& Beverages and also one of the country's largest exporters. HUL's brands includes :
Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic,
Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wal l 's
- are household names across the country. They are manufactured in over 40 factories
across India. In the Rs7,000 crore by sales soap market, HUL‗s market share has
dropped to 54.3% in March 2008 from 55.9% in March 2006.
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Godrej Consumer Products
GCPL, India‗s second largest soap maker after Hindustan Unilever Ltd, has nearl y
9.2% market share. With 11% market share in value terms, i t is the second larg est
soap maker after Hindustan Unilever. Godrej Consumer Products (GCPL) is a major
player in the Indian FMCG market with leadership in personal, hair , household and
fabric care segments . The company is one among the largest marketer of toilet soaps
in the country with leading brands such as CINTHOL, FAIRGLOW, NIKHAR, &
ALLCARE. Fairglow brand, India ' s f i rst Fairness soap, has created marketing 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 market, Wipro is a leader in providing IT solutions and services fo r the
corporate segment in India. Wipro also has a profitable presence in niche mar ket
segments of infrastructure engineering, and consumer products & l ighting.Wipro has
made a large acquisit ion in the Consumer Care business. The presence of Wipro in the
toilet soap industry can be seen through their brands such as SANTOOR and
CHANDRIKA. With industry leading organic growth rates and the acquisit ion,
Consumer care business has reached a Revenue run rate in excess of $100 mill ion per
quarter.
Procter & Gamble India
Procter & Gamble India (PGHHCL) was incorporated in 19 64 after Procter & Gamble,
US, acquired Richardson Vicks, US. Formerly known as Ri chardson Hindustan (the
Indian subsidiary), i t was later named as P&G. It changed i ts name aga in in 1998 to
Procter & Gamble Hygiene and Health Care in order to reflect the nature and character
of the business of the company. During 2004-05 the company has increased i ts
installed capacity of Soaps &
Detergents and Toilet Preparations etc by 36500 Tonnes and 263 Tonnes respectively.
With this expansion the total installed capacity of Soaps & Detergents a nd Toilet
Preparations etc has increased to 108500 Tonnes and 5875 Tonnes respectively .
Nirma
Incorporated as a private l imited company, Nirma was converte d into a deemed public
company and then to a public l imited one in Nov. '93. Nirma has a leadership presence
in Detergents, Soaps and Personal Care Products. To have a greater control on the
quali ty and price of i ts raw materials, Nirma undertook backward integration into
manufacture of Industrial Products l ike Soda Ash, Linear Alkyl Benzene (LAB), Alfa
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Olefin Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric Acid. During 1996 -97,
Nilnita Chemicals, Nirma Detergents, Nirma Soaps and Detergents, and Shiva Soaps
and Detergents were amalgamated with the company. The company created 'Nirma
Consumer Care Ltd. ' - a wholly owned subsidiary on 22nd Aug. '97, which is the sole
l icensee of the brand name 'Nirma' within India. Nirma enjoys a share of 6.74% in
soaps.
ITC
ITC, the country‗s largest cigarette maker, entered the segment l ast year and has made
a strong headway in a short t ime. According to AC Nielsen, i ts share has grown to
1.75% in just f ive months despite the fact that many of i ts brands such as Superia ,
Fiama Di Wills and Vivel are currently sold in only six states.
COMPETITOR ANALYSIS
External Competitors
Santoor:
Santoor is the flagship brand in the Wipro Consumer Care & Light ing stable and the
2nd largest brand of soap in India in the popular segment of the category. T he brand
enjoys two decades of trust since i ts launch in 1986 and has grown to be counted
amongst the top brands in the Country in an intensively competit ive market. Mill ions
of women across the country have discovered the secret of younger looking skin with
Santoor. It is a truly unique soap that combines the goodness of natural ingredients -
Sandal, Turmeric and natural Skin Softeners . Sandal provides a cooling and soothing
effect that softens skin, while turmeric contro ls formation of skin darkening pigments
l ike melanin, to give skin a radiant glow. Natural Skin Softeners make skin soft and
supple. The end result , skin that is so healthy and beautif ul , i t l ies about your actual
age!
Amongst the first brands in the Country to launch an offering with t he twin ingredient
benefits of Sandal and Turmeric, Santoor has over the years moved from a p urely
natural ingredient based appeal, to one of the most preferred beauty soaps of the day.
Today, Santoor is one of the fastest growing soap brands in India. Santoor is available
in three variants – Santoor (Sandal & Turmeric), Santoor White (Sandal & Almond
milk) and Santoor Chandan which is a premium soap manufactured with extracts of
Sandalwood oil – a favourite of discerning consumers.
Cinthol:
Cinthol the popular and much-loved brand of Godrej Consumer Products Limited
(GCPL)have been a favourite of people for many years . All different soaps in i ts range
22
are having feel -fresh f ragrance and high TFM index. Cinthol‗s range covers an
economic Lime-fresh, the medium deo-soaps (spice, l ime,cologne and the new ‗sport‗)
and a sl ightly expensive ―Cinthol -Original‖ .
For decades, Cinthol -Original is one of the best soaps made in India. It had a simple
red-cover which attracts none! But was st i l l able to sustain i tself in the ma rket .
Godrej has now launched the improved Cinthol range. Cinthol now offers a deo -range
of soaps, talc and deo-sprays in three excit ing fragrances - Classic, Cologne and Sport
in a trendy new packaging. It also offers
Cinthol fresh soap and Cinthol Regular soap with new excit ing p ackaging. The eye -
catching and vibrant packaging symbolizes a sense of adventure, zest and action. The
new Cinthol range brings 24-Hour Confidence through Active Deo Formula, which
controls body odour, Powerful DryShield that absorbs sweat, UltraScent Technology
for long lasting fragrance and Freshness that revitalises you 24x7.The new range will
be available across the country at modern retail and other outlets and will be
supported by high-impact advertising on television, 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 lustre to make i t
radiant. Vivel Di Wills Sheer Crème is enriched with Shea Butter, to moisturize skin
to make i t 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 Sparkle is enriched with Sandalwood Oil and Active Clay which
helps in providing clear skin.
Vivel Ayurveda Essence is enriched with multiple Ay urvedic Ingredients which
help protect skin from germs and harsh environment, keeping i t 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 give radiant 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 & Almond Oil
Natural Glow: with Neem & Coconut Oils
Healthy Glow: with Orange Oil
23
Company profile
Hindustan Lever Ltd
Hindustan Lever Ltd (HLL) is India 's largest Fast
Moving Consumer Goods (FMCG) company. HLL's brands l ike L ifebuoy, Lux, Surf
Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up,
Lakme, Brooke Bond, Kissan, Knorr -Annapurna, Kwality Wall 's are household names
across the country and span a host of categories, such as soaps, detergents, personal
products, tea, coffee, branded staples, ice cream and culinary products. These
products are manufactured over 40 factories across India and the associated operations
involve over 2,000 suppliers and associa tes. Hindustan Lever Limited 's distribution
network comprises about 4,000 redistribution stockist s, covering 6.3 mill ion retail
outlets reaching the entire urban population, and about 250 mill ion rural consumers.
HLL is also one of India 's largest exporters. It has been recognised as a Gold en Super
Star Trading House by the Government of India. Presently, HLL has over 16,000
employees including over 1,200 managers. Its mission is to "ad d vi tali ty to l ife." The
Anglo-Dutch company Unilever owns a majority stake in Hindustan Lever Limited.
In the late 19th and early 20th century Unilever used to export i ts p roducts to India.
This process began in 1888 with the export of Sunlight soap, which was followed by
Lifebuoy in 1895 and other famous brands l ike Pears, Lux and Vim soon after. In
1931, Unilever set up i ts f irst Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders
Limited (1935). The three companies were merged in November 1956 and the new
enti ty that came into existence after merger was called a s Hindustan Lever Limited.
HLL offered 10% of i ts equity to the India n public, and i t was the first among the
foreign subsidiaries to do so. Currently, Unilever hold s 51.55% equity in the company
while the rest of the shareholding is distributed among about 3 80,000 individual
shareholders and financial insti tutions.
Brooke Bond entered Indian market in 1900 and in 1903 i t launched Red Label tea in
the country. In 1912, Brooke Bond & Co. India Limited was fo rmed. Unilever
acquired Brooke Bond through an international acquisit ion. Similarly, Lipton 's l ink
with India date back to 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton
Tea (India) Limited was incorporated. Pond's ( India) had been in Indian market since
1947. It joined the Unilever ranks through an international acquisit ion of Chesebrough
Pond's USA in 1986.
24
The l iberalization of Indian economy in 1991 and subsequent removal of the
regulatory framework allowed HLL to explore every single product and op portunity
segment, without any constraints on product ion capacity. The 1990s witnessed a string
of crucial mergers, acquisit ions and all iances. In 1992, the erstwhile Brooke Bond
acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993,
i t acquired the Kissan business from the UB
Group and the Dollops Ice -cream business from Cadbury India. In one of the most
talked about events of India 's corporate history, the erstwhile Tata Oil Mills Company
(TOMCO) merged with HLL, effective from April 1, 1993. In July 1993, Broo ke Bond
India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL).
Brooke Bond Lipton India Limited launched Wall 's range of Frozen Desserts in 1994
and by the end of the year, HLL entered into a strategic all iance with the Kwality
Icecream Group families. BBLIL merged with HLL, with effect from January 1, 1996.
HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL). The NLL
factory manufactures HLL's products l ike Soaps, Detergents and Personal
Products both for the domestic market and exports to India. I n January 2000, as part
of i ts divestment strategy, the government decided t o award 74 per cent equity 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 to "Hindustan
Unilever Limited" to s trike the optimum balance between maintaining the heritage of
the Company and the future benefits and synergies of global al ignment with the
corporate name of "Unilever".
Mission
Unilever 's mission is to add Vitali ty to l ife. They meet everyday ne eds for nutri t ion,
hygiene and personal care with brands that help people feel good, look good and get
more out of l ife.Their deep roots in local cul tures and markets around the world give
them strong relationship with consumers and are the foundation for their future
growth.
A key requirement is building in the quali ty expectations of their consumers into their
products.
To win consumers‗ confidence and loyalty, they need to consistent ly deliver branded
products of excellent quali ty.
The Quality Policy describes the principles that everyone in Unilever follows,
wherever they are in the world, to ensure that they are recognised and trusted for their
integrity, the quali ty of their brands and products, and the high standards they set .
25
Principles of the Quality Policy
• Putt ing the safety of thei r products and consumers first .
HUL has stringent mandatory quali ty standards in place against which compliance is
verified through regular audits and self assessments. These standards ensure they
design, manufacture and supply products that are safe, of excellent quali ty, and
conform to the relevant industry a nd regulatory standards in the countries in which
they operate.
They actively engage consumers and customers, translating their needs and
requirements into products and services, thus creating consumer value wherever they
posit ion their products .
• Quali ty is a shared responsibil i ty
Quali ty and consumer safety is the responsibil i ty of every Unilever empl oyee and
Unilever demonstrates visible and consistent leadership to meet this policy. The drive
for quali ty, in all that they do, is a passion reflected in their brand development,
manufacturing and customer service processes.
Present stature
Hindustan Unilever Limited (HUL) is India 's largest Fast Moving Co nsumer Goods
company, touching the l ives of two out of three Indians with over 20 dist inct
categories in Home & Personal Care Products and Foods & Beverages. They endow the
company with a scale of combined volumes of about 4 mill ion tonnes and sales of
nearly Rs.13718 crores.
HUL is also one of the country's largest exporters; i t 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 to "add vitali ty to
l ife." HUL meets everyday needs for nutri t ion, hygiene, and perso nal care with brands
that help people feel good, look good and get more out of l ife. It is a mission HUL
shares with i ts parent company,
Unilever, which holds 52.10% of the equity. The rest of the shareholding is
distributed among 360,675 individual shareholders and financial insti tutions.
HUL's brands - l ike Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,
Sunsilk, Clinic, Pepsodent, Close -up, Lakme, Brooke Bond, Kissan, Knorr -Annapurna,
Kwality Wall 's – are household names across the country and span many categories -
soaps, detergents, personal products, tea, coffee, branded staples, ice cream and
culinary products. They are manufactured over 40 factories across India.
26
The operations involve over 2,000 suppliers and associates. HUL's distribu tion
network, comprising about 4,000 redistribution stockists, covering 6.3 mill ion retail
outlets reaching the entire urban population, and about 250 mill ion rural consumers.
HUL has tradit ionally been a company, which incorporates latest technol ogy in all i ts
operations. The Hindustan Unilever Research Centre (HURC) was set up in 1958, and
now has facil i t ies in Mumbai and Bangalore. HURC and the Global Technology
Centres in India have over 200 highly qualif ied scientists and technologists, many
with post -doctoral experience acquired in the US and Europe. Group operates through
seven segments: Soaps and Detergents , Personal Products, Exports , Beverages,Foods,
Ice Creams and Other. The produc ts include home and personal care products, foods
and beverages, industr ial and agricultural products. Home and personal care pro ducts
consists of personal and fabric wash, household, oral care, skin and hair care,
deodorants, perfumery, colour cosmetics and baby care. Foods and beverages includes
tea, coffee, cooking fats and oils, bakery fats, ice creams, tomato products, fruit and
vegetable products, r ice, salt , at ta and rawa, marine products and mushrooms.
Industrial and agricultural products includes specialty chemicals, bulk chemicals,
fert i l isers, animal feeds, seeds, plant growth nutrients, processed -tr i -glycerides and
agri commodities, yeast , leather, footwear and carpets, thermometers and plantations.
Its brands are spread across 20 consumer product categories. Hindustan U nilever
markets consumer goods throughout India. The company faces competit ion from
international, local and regional players.
The company derives 44.3% of i ts revenues from soaps and deterg ents, 26.6% from
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 i ts brand equity and exclusivity.
New Products introduced by HUL in recent ye ars:
Lux strawberry and cream
Clinic plus multi sachet
Ponds age miracle
Axe shock and recover
Paddle pop
Wheel active Green
27
Divisions
Home and Personal Care
The HPC business is made up of Fabric Wash, Household Care, P ersonal Wash and
Personal Care categories.
Personal Wash: Lux, Lifebuoy, Liri l , Hamam, Breeze, Dove, Pears, Rexona
Laundry: Surf excel, Rin, Wheel
Skin care: Fair and Lovely, Ponds, Vaseline, Aviance
Oral care: Pepsodent, Close up
Deodorants: Axe, Rexona
Colour cosmetics: Lakme
Ayurvedic personal and health care: Ayush
Foods
The Foods Division of your Company comprises Beverages, P rocessed Foods, Ice -
Creams and Modern Foods businesses. The Division recorded strong growth in 2007.
Tea: Brooke Bond, Lipton
Coffee: Bru
Foods: Kissan, Annapurna, Knorr
Ice cream: Kwality walls
Hindustan Lever network
Started in 2003, Hindustan Unilever Network (HUN) is HUL's Dir ect Sell ing arm. It is
a multi -category direct sell ing business offering a wide range of high-quali ty, high-
performance products for i ts consumers and also excit ing business and personal
development opportunit ies for i ts consultants. It already has about 7 lakh consultants -
al l independent entrepreneurs, trained and guided by HUN's exper t managers and
trainers.
HUN‗s mission is to a create mill ionaire 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
Sell ing channel, and not available in the retail channel.
28
HUN has already spread to 1500 towns and cit ies, backed by 2 8 offices and over 130
service centres across the country. HUN's vision is to earn the love and res pect of
India by making a real difference to the l ives of mill ion Indians.
Exports
Today, HUL is one of Ind ia‗s Largest exporters of branded Fast Moving Consumer
Goods. It has been recognized by the Government of India as a Gol den Super Star
Trading House. Over t ime HUL has developed into a viable & competit ive so urcing
base for Unilever world wide in Home and Personal Care & Foods & Beverages
category of products. HUL is also a global marketing arm for select l icensed Unilever
brands and also works on building categories with core country advantage such as
branded basmati r ice.
HUL Exports offers high level of service with flexibil i ty and r esponsiveness thorough
out the supply chain. I t has a dedicated organization structure to suppo rt this
endeavour and this has helped in growth of these businesses in particular. Intrinsic
cost competit iveness in the end to end Supply chain with appropriate technology and
competit ive capital investment operations while delivering best in class quali ty
enables HUL to posit ion i tself as a key sourcing hub for
Unilever and also become a preferred partner for Global custom ers in categories we
operate. HUL‗s key focus in the exports business is on two broad categor ies. It is a
sourcing base for Unilever 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 country, has competit ive advantage – Branded Rice,
Marine Products and Castor and i ts Derivati ves . HUL enjoys international recognition
within Unilever and outside for i ts quali ty, rel iabil i ty and speed of customer service.
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), comes with many
unique benefits – complete protection from all water -borne diseases, unmatched
convenience and affordabil i ty. Pureit‗s unique Germkill Battery technology kil ls al l
harmful viruses and bacteria and removes parasites and pesticide impurit ies, giving
you water that is ‗as sa fe as boiled‗. It assures your family 100% protection from
water-borne diseases l ike jaundice, diarrhea, typhoid and cholera. Pureit not only
renders water micro-biologically safe, but also makes the water clear, odourless and
good-tasting.
29
Corporate Responsibility
As in the earl ier years , your Company continued to involve i tself in socia l welfare
init iat ives across the Country, both through charity and social investment around
issues l ike education, health, nutri t ion and init iat ives for the economic upliftment of
the underprivileged.
The company has commenced a pilot in i ts tea business, in partne rship with an NGO
(Partners in Change) to source tea directly f rom small producers and thereb y improve
their l ivelihood. The effort of the Company in improving water availabil i ty throu gh
soil conservation and water harvesting 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 Swasthya Chetana. The
programme endeavours to induce adoption of hygienic practices among rural Ind ians
and aims to bring down the incidence of diarrhoea. It has already touched 84.6 mill ion
people in approximately 43890 vil lages of 8 states. The vision is to make a bil l ion
Indians feel safe and secure.
PRODUCT PROFILE:
Lux soap was first launched in 1916 as laundry soap targeted spec ifically at
'delicates '. Lever Brothers encouraged women to home launder th eir clothes without
fear of satins and si lks being turned yellow by harsh lyes that were often used in
soaps at the t ime. The flake-type soap allowed the manufacturer some leeway from lye
because i t did not need to be shaped into tradit ional cake-shaped loaves 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 marketed in several forms, incl uding bar
and flake and l iquid (hand wash, shower gel and cream bath soap).
Lux in step with the changing trends and evolving beauty nee ds of the consumers,
offers an excit ing range of soaps and Body Washes with un ique elements to make
bathing t ime more pleasurable. One can choose from a range of skincare benefits l ike
firming, fairness and moisturising.
Lux stands for the promise of beauty and glamour as one of Indi a 's most trusted
personal care brands. Since i ts launch in India in the year 1929, Lux has offered a
range of soaps in different colours and world class fragrances. Lux is a beauty soap of
fi lm stars. Lux recognized the need for a compelling message about beauty that would
resonate with women of today.
From the 1930s right through to the 1970s, Lux soap colours and packaging were
altered several t imes to reflect fashion trends. In 1958 five colours made up the r ange:
pink, white, blue, green and yellow. People enjoyed matching their soap with their
bathroom colours.
30
In the early 1990s, Lux responded to the growing trend away from tradit ional soap
bars by launching i ts own range of shower gels, l iquid soaps and moistu rizing bars.
Lux beauty facial wash, Lux beauty bath and Lux beauty 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 it ing new
variants with dreamy names such as ―Wine & Roses‖ bath cream, ―Glowing T ouch‖
and ―Sparkling Morning‖ shower gels.
Lux has recently launched i ts two fruit extract variants – New Lux Strawberry &
Cream and Lux Peach & Cream contain a blend of succulent fruits & luscious
Chantil ly cream. The most recent addit ion in the brand is Lux Crystal Shine.
Product Category, Market Segmentation, Target Marketing and Posit ioning
This section describes the category of the selected product. The chapter is organized
into four sections. Section 1 states under which category the p roduct falls. Section 2
describes how Unilever Bangladesh Ltd. differentiates the population and c ategorizes
them into different segments. Section 3 analyzes which segment the company ta rgets
and why they target that specific segment. Finally section 4 describes the process
through which the company tries to capture a place in the buyers mind i .e. the product
posit ioning method.
Product Category
LUX falls under the category of toiletry product as a beauty soap.
Market Segmentation:
The company claims that LUX is the highest sell ing beauty soa p in Bangladesh.
Moreover some survey reports also reveal the same result .
Though LUX is the highest sell ing beauty soap in Bangladesh, i t do es not go for
tradit ional mass marketing. Moreover as a beauty soap LUX does not even segment i ts
market according to gender.
Shows that Unilever Bangladesh Ltd. segments their market according to geographical
areas.
The population of the country is segmented into three parts which are urban, sub
urban and rural area consumers.
31
Target Market:
LUX is not a highly expensive 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 country. From the segmenta t ion of customer
according to SEC they target category A, B and C, because they are assumed to be
financially well -off and can afford to buy
Product Posit ioning:
Unilever Bangladesh Ltd obtained a good posit ion in the buyer s‗ mind through better
product at tr ibutes, price and quali ty, offering the product in a different way than the
competitors do. The company offers improved quali ty of products in the industry at
an affordable price with high branding, which ult imately helps to posit ion the product
in the buyers‗ mind as the best quali ty beauty soap.
The market share of the company in the beauty soap industry is somewhere around
43%.Since in the beauty soap industry all products are of same price Unileve r cannot
provide i ts consumers with better price but i t is in a great posit ion in reference with
i ts packaging, fragrances and product designing.
Tactical Marketing Tools
This chapter describes the way Unilever Bangladesh Ltd. use th e tactical marketing
tools for marketing LUX in Bangladesh. The chapter comprises of four sec tions. This
section includes a table that shows the location of the company‗s warehouses all
around the country. Finally section 3.4 discusses the promotional activit ies that the
company undertakes for LUX.
Product:
LUX is an internationally renowned beauty soap brand of Un ilever. Though
manufactured in Bangladesh for the local market by Unilever Bangladesh Ltd, as an
international brand, i t maintains an international quali ty for the product. Formula
given by Research and Development departments in foreign countries, LUX is
produced in Bangladesh from imported raw materials l ike sodium soap, glycerol and
different extracts according to flavors, coming from Unilever plants si tuated abroad.
LUX is offered in Bangladesh in s ix different f lavors which are: LUX Energizing
Honey, LUX Golden Glow, LUX Nature Pure, LUX Orchid Touch, L UX Almond
Delight and LUX Aqua Sparkle. Taking into account the convenience of i ts customers ,
the company manufactures all f lavors of LUX in three di fferent sizes, 40gm, 80gm and
120gm.
32
Price:
Though Unilever Bangladesh gives i ts LUX customers a lot in t erms of the product
i tself , i t cannot provide a better pricing. This is due to some constraint s in the beauty
soap industry. Beauty soap is a product with a vulnerable demand in Bangladesh . A
change in price has a high risk of creating price war among the rivals which will
eventually cause a loss of profit . Its pricesare almost equal to i ts competitor. Lux‗s
price with i ts major competitor. Company carries out research on competitors‗ price
and brand loyalty when i t feels extreme necessaity of chaging price. The brand loyalty
test is an exploratory research which is known as Brand Health Check-Up (BHCU).
Place:
Unilever Bangladesh Ltd. has a huge distribution channel for LUX all over the
country as i ts sales reach more than 10 mill ion pieces a year . The company h as six
huge warehouses, one in each division of Bangladesh, where the product goes after
they are manufactured at Kalurghat factory.
The company does not use i ts own fleet of transport for distributing i ts product.
However , i t has outsourced i ts distribution process to various third party distribu tors,
exclusively dedicated to Unilever Bangladesh Ltd. These distributors then supply the
product al l over Bangladesh to a huge number of retailers. Even though LUX targets
the urban and sub urban middle and upper middle class people they are distributing
their products all over Bangladesh because of a recent increase in demand of i ts
product to all segments of the population.
Promotion:
Unilever Bangladesh undertakes huge promotional activit ies t o promote LUX which
has topped the beauty soap industry of Bangladesh. It spends almost 20% t o 25% of i ts
Net Proceeds from Sales (NPC) of LUX for promotional activit ies for LUX 1 It‗s
certain annual promotional campaigns l ike LUX Channel i Superstar and LUX Channel
i Annual Cinema Awards has made the product a part of the glamou r world. Since the
1930s, over 400 of the world‗s most stunning and sensuous women have be en proudly
associated with Lux advertisements. They do not only promote LUX in Bangladesh for
the beauty conscious females, i t also promotes the brand for males and the company
proved that , by including world famous male celebrity Shahrukh Khan for their
advertising campaign.
Unilever Bangladesh Ltd spends a huge amount of mone y for promoting LUX through
TV commercials, newspaper advertisements and bil lboards. Mor eover i t also
undertakes small promotional campaigns at di fferent schools, colleges, universit i es
33
and recreational parks with winners of i ts Zonal Beauty Contests. Til l now
promotional activit ies of LUX has always been successful which has made i t a
household common name and helped i t reach almost one bil l ion tak a sale value in the
year 2004 2.
The Market for LUX
For better comprehension of Unilever Pakistan, i ts market ing strategy, product
quali ty, posit ioning and placement, we present here a comparative analysis of i ts
competitors. This part of the project i l lustrates the market share of different
companies in the beauty soap industry.
Market Share:
The beauty soap industry in Pakistan consists of only seven majo r producers. Unilever
Pakistan Ltd is operating in the industry with i ts world famous brand L UX. Out of
these giant companies Unilever Pakistan Ltd is the market leader with a share of
around 43%. Other companies in the industry are not as big as Unilever Pakistan Ltd
but they are posing threat to the company by a tendency of a gradual increase in their
market share. Kohinoor Chemicals which is operating with the brand name Tibet is an
extremely famous brand to the rural segment of the population and possess a
significant share in that segment which is the largest population group in Pakistan.
Moreover Keya Cosmetics Ltd operatin g with the brand name Keya and Marks & Allys
Ltd operating with the brand name Aromatic are also uprisin g brands to both the rural
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 l ike Parachute Coconut
Oil is posing to be a threat to Unilever Pakistan‗s market share.
Integrated Marketing Communication
Promotion
The great Indian brand wagon started nearly four decades ago. Great brands sometimes
outlast their ambassadors as proven by Lux which celebrated i ts 75th anniversary 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,
Nargis, Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu,
Hema Malini , Zeenat Amaan, Juhi Chawla, Madhuri Dixit , Sridevi , Aishwarya Rai and
Kareena Kapoor. The last frontier for most actors aspiring to stardom is becoming a
34
Lux ambassador. The brand has outlasted many soaps. From the beginning, Lux
became a household name across the country.
Sales Promotion
Sales promotion, a key ingredient in marketing campaigns, consist s of a collection of
incentive tools, mostly short term, designed to st imulate quicker or greater purchase
of part icular products or services by consumers or the trade.Whereas advertising
offers a reason to buy, sales promotion offers an incentive to buy.
Prominent 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 offer that Lux unveil ed in October 2000, a
consumer finding a 22-carat gold coin in his or her soap bar got an opportunity to win
an addit ional 30 gm gold. The first 10 callers every 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 scratch card. The 50
lucky winners and their spouses were flown down to Mumbai to l ive a day l ike
Aishwarya Rai would. They could also be given gift vouchers worth Rs 50,000 from
Shoppers ' Stop along with an exclusively designed Neeta Lulla sar i and a bea uty
makeover by Michelle Tung, Aishwarya 's preferred designer and stylist . The pièce de
résistance was a dinner date with Aishwarya Rai herself .
Public Relations:
Not only must the company relate constructively to customers , suppl iers and dealers,
i t must also relate to a large number of interested publics. A public is a ny group that
has an actual or potential interest in or impact on a company‗s abil i ty to achieve i ts
objectives. PR involves a variety of programs designed to promote or protect a
company‗s image or i ts individual products.
LUX PR Activit ies
Press relations
Lux has been maintaining constant communicating wi th i ts customers and potential
customers, of the various developments taking place in the brand by using press
relations.
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Events:
Lux celebrated 75 years of existence in a grand way by un veil ing Shahrukh Khan as
their latest brand ambassador. Kareena Kapoor, Juhi Chawla, Sridevi and Hema Malini
graced the event and made i t special . All the stars have endorsed Lux in the past . The
event was held at the grand Intercontinental in Mumbai.
Limited edit ion:
Coming up with l imited edit ion of the brand is also a way of at tracting attention
towards the brand. It creates a buzz and a feeling of urgency to try out the pro duct and
helps in promotion of the brand. This strategy was also implemented by Lux by
bringing out l imited edit ions l ike Chocolate Seduction, Aromatic Glow, Festive Glow
and Haute Pink.
Labell ing
The LUX Trade Character or Logo is present prominently on the package. A novel
metall ic substrate packaging showcases the ingredients, and a female mo del is shown
on the pack. Also displayed graphically are the key ingredients.
Packaging
The colors are different for different variants such as saffron for the saffron variant,
pink for the rose extracts etc.The Bars come in package sizes of 100g, 120g, 150 g
Point of Purchases:
The LUX is not given a notable placement on the shelves of di fferent retail shops &
departmental stores for i ts sales promotion. Usually the compan y goes for wide
display in the stores where i t potential for i ts product. Different eye -catching
decorations are made inside the store and in the showcase for outside display. These
arrangements are made with the assistance of the sales people of the company.
Advertisements:
The message that the product reflects in i ts advertisements is the o ne that is usually
narrated by the corporate i tself . Advertising is any paid form of non -personal
presentation and promotion of ideas, goods and services by an identified sponsor. Ads
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can be a cost effective 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 posit ioned on the basis of REFERE NCE
GROUP by using a celebrity popular at that point in t ime. Some amount of at tr ibute
posit ioning by mentioning the various ingredients has also been done.
Lux campaigns have wooed mill ions of people over the decades. Popularly known as
the beauty soap of fi lm stars, Lux has been an intimate partner of the brightest stars
on the si lver screen for decades. An ode to their beauty, an announcer of their
stardom, advertising campaigns on Lux have featured fi lm stars across the nation,
promising their beauty and complexion to ordinary women.
With top movie stars – from Madhubala to Madhuri , from Babita to Karisma and
Kareena having endorsed the goodness of Lux over generations, i t was na tural that the
brand has buil t equity as the best beauty soap in India.
From the beginning Lux, by using a leading fi lm star of the t ime , has fulfi l led the
consumers‗ aspirations of using beauty soaps via the rationale ‗if i t‗s good eno ugh for
a fi lm star, i t‗s good for me. This later moved into a transformation role of having a
bath with Lux, which t ransports the user into a fantasy world of icons, f i lm stars and
fairy lands.
Change in communicat ion strategy
However , the communication was slowly seen to be losin g relevance, as consumers
were beginning to question if the fi lm star actually used the brand.
In addit ion to this, several competit ive beauty soap brands had begun advertising
using similar 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 t ime moved the brand away from the long-running fi lm star route. The
fi lm star st i l l features in the new communication but not as her gorgeous self but
rather as an alter ego/projection of the protagonist (a regular girl) , for a few seconds
of the entire ad. Thus, for the first t ime the fi lm star was used as a communicat ion
device and not as the main feature of the ad. The move away from the fi lm star and
her fantasy world to a regular Lux user, with the focus on the protagonist‗s star
quali ty, is a change from the norms set by Lux advertising in the past . With the new
communication strategy, the fi lm star is used purely as a communication device to
portray star quali ty in every Lux user. Thi s can be significantly seen in the latest TV
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commercial of Lux Crystal Shine where Priyanka Chopra is portrayed as a normal
woman.
This idea – bring out the star in you – puts the 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. It‗s a world where with Lux on her
side, an ordinary woman can impact her world with her own star quali ty.
This is a successful at tempt to bring the brand closer to i ts users and to give i t a more
youthful and contemporary image.
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 impact on s ales . In order to meet the
company policy of maintaining and strengthening the corporate image, the ads are
shown on television. There is a long -term strategy in the books of Unilever to disturb
the loose Soap market. They usually show documentary from tim e to t ime regarding
the flaws in loose Soap quali ty. It is usually shown without any discrimination, i .e. ,
without mentioning any Soap name or company name in the documentary.
Celebrity endorsements
Hollywood
Since the 1930s, many well -known Hollywood actresses have marketed the soap to
women as a beauty enhancer. Advertisements have featured Dorothy Lamour, Joan
Crawford, Laurette Luez, Judy Garland, Cheryl Ladd, Jennifer Lopez, Elizabeth
Taylor, Demi Moore, Sarah Jessica Parker, Catherine Zeta -Jones, Rachel Weisz, Anne
Hathaway, and Marilyn Monroe, among others. The first male to star in a Lux
advertisement was Hollywood actor Paul Newman
Bollywood
Today, the brand is st i l l heavily advertised in India using Bollywood stars.
Madhubala, Mala Sinha, Hema Malini , Sridevi, Madhuri Dixit , Juhi Chawla, Karisma
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Kapoor, Rani Mukerj i , Aishwarya 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 widely advertised in Pakistan ever since the brand was introduced.
Pakistani models including Reema Khan, Meera, Aaminah Haq, Babra sharif and
various other leading models and actresses have been "Lux models" from time to t ime.
Lux remains the leading soap brand in Pakis tan, representing the s tylish class of
Pakistan. Things started with a TV show called Lux Style Ki Duniya, now with the
country's leading models and actors ta king part in the annual Lux Style Awards every
year. Ali Zafar the famous Pakistani Singer has become the first male model for Lux.
Other countries
Lux soap is very popular in Nepal and the brand appointed Nepali model -turned-
actress Jharana Bajracharya to be the Lux Girl in the Summer of 2003. After that , she
appeared on many TV commercials. Nigerian actress Genevieve Nnaj i appeared as the
face of Lux soap in 2004. Two decades earl ier, singer Patt i Boulaye had been
Nigeria 's face of Lux. In Norway duri ng the 1950s and 1960s, Lux advertisements
featured fict ional Ital ian actresses. Lux soap is also a category leader in Pakistan, the
brand being synonymous with glamour. While init ial ly i t was also marketed as the
beauty soap of the fi lm stars, recently i t is focusing more on bringing out the star in
ordinary people. Current brand ambassador is 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 Life and Love of Dr. Susan an early 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 mainstream American
markets and is no longer the recognized brand i t once was. Many Hollywood stars
were lured to appear on Lux Radio Theatre not only due to i ts high quali ty, 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 department to manage the complaints of the end -users. A legal department is
also dealing with the legal issues and media war. If any news is published in a
newspaper that harms the product image, a persuasive message is published in that
newspaper to counter the rumor.
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Sponsoring Events:
The company goes for sponsoring events in order to heighten the company and brand
image.
Mostly the company goes for financing such kind of events in which i ts product has
got some room to build l ikeness . The company also goes for sponsoring fashion shows
in different ci t ies.
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 Unilever is intensive. It means that the
product distribution is covering wide market . There are regional headquarters of the
company in all the big cit ies of the country. There is a distributor in each big city. In
order to reach remote areas, a distributor engages a sub -distributor for a small area.
The company is directly l inked with the main distributor and the sub -distributor has
no such direct contact with the company. The company provides the Life Buoy
inventory 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 Terri tory Sales Officer (TSO). TSO is directly l inked
with the distributors to set and achieve targets. The targets vary from area to area and
are set on the basis of history of the area sales. As the sales targets depend upon the
area history of sales; these are usually achievable. If these targets are facing some
kind of setback, the promotional schemes based on areas are announced as discussed
earl ier.
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BIBLIOGRAPHY
http://www.managementparadise.com/vinola/documents/1894/integrated-marketing-communication-amp-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