LUXLUX

DEPARTMENT OF COMMERCEDEPARTMENT OF COMMERCE

JINNAH UNIVERSITY FOR WOMENJINNAH UNIVERSITY FOR WOMEN

BS FINAL YEAR, FIRST SEMISTERBS FINAL YEAR, FIRST SEMISTER

20102010

Lux

“Not Just Soap, Its Skin Care".“Not Just Soap, Its Skin Care".

SUBMITTED TO:SUBMITTED TO:

MISS JAVAHIRMISS JAVAHIR

SUBMITTED BY:SUBMITTED BY:

NIDA ATHERNIDA ATHER

DATE OF SUBMISSION: DATE OF SUBMISSION:

2-FEB-102-FEB-10

EXECUTIVE SUMMARY

Lux soap was first launched in the UK in 1899 as a flaked version of Sunlight soap.

Subsequently it was launched in the US in 1916, and marketed as a laundry soap targeted

specifically at 'delicates'. Lever Brothers encouraged women to home launder their

clothes without fear of satins and silks being turned yellow by harsh lyes that were often

used in soaps at the time. The flake-type soap allowed the manufacturer some leeway

from lye because it did not need to be shaped into traditional 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 is currently a product of Unilever. The name "Lux"

was chosen as the Latin word for "light" and because it was suggestive of "luxury”.

In Pakistan Lux was first introduced in 1957 and till now Lux has become one of the top

soap in Pakistan.

MARKET SHARE

The market share of the company in the beauty soap industry is somewhere around 52%.Since in

the beauty soap industry all products are of same price Unilever cannot provide its consumers

with better price but it is in a great position in reference with its packaging, fragrances and

product designing.

It states that though in comparison to its competitors the pricing of LUX is same but consumers

rate it as the product which gives them the highest quality. This positioning created a strong

customer loyalty for LUX, for which it the market leader in the industry.

The beauty soap industry in Pakistan consists of only seven major producers.

Unilever Pakistan Ltd is operating in the industry with its world famous brand LUX. Out

of these giant companies Unilever Pakistan Ltd is the market leader with a share of

around 43%.

Figure shows the market share of all the companies in the sector. Unilever Pakistan Ltd is

leading the market. The other competitors are very competitive among themselves but they

cannot put a intense competition with Unilever Pakistan Ltd, as they have market share much

less than Unilever Pakistan Ltd.

MARKETING SEGMENTATION

LUX is the highest selling beauty soap in Pakistan, it does not go for traditional mass marketing.

Moreover as a beauty soap LUX does not even segment its market according to gender.

Unilever Pakistan 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.

The company further differentiate the geographical segments according to Socio Economic

Cluster (SEC) i.e. education and Income.

Socio Economic Clusters

A B C D E

Income

High Income Upper

Middle Level

Income

Mid

Level

Income

Lower Middle

Income

Low Income

Education

High Level of

Education

Educated

Slightly Less

than Cluster A

Educated

Slightly

Less than

Cluster B

Educated

Slightly Less

than Cluster C

Very Low

Level of

Literacy

The SEC divides the population in five segments starting from A to E, where A categorizes the

highly educated and high income earners holders the main target market of the Lux, and

sequentially in descending order E categorizes the opposite.

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 the second highest population of

segment of the country. From the segmentation 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

LUX.

Socio Economic Clusters

A B C

Income

High Income Upper Middle Level

Income

Mid Level Income

Education

High Level of

Education

Educated Slightly Less

than Cluster A

Educated Slightly Less than

Cluster B

Product Positioning:

Unilever Pakistan Ltd obtained a good position in the buyers’ mind through better product

attributes, price and quality, offering the product in a different way than the competitors do. The

company offers improved quality of products in the industry at an affordable price with high

branding, which ultimately helps to position the product in the buyers’ mind as the best quality

beauty soap.

The market share of the company in the beauty soap industry is somewhere around 52%.Since in

the beauty soap industry all products are of same price Unilever cannot provide its consumers

with better price but it is in a great position in reference with its packaging, fragrances and

product designing.

It states that though in comparison to its competitors the pricing of LUX is same but consumers

rate it as the product which gives them the highest quality. This positioning created a strong

customer loyalty for LUX, for which it the market leader in the industry.

Marketing Mix:

ProductLUX is an internationally renowned beauty soap brand of Unilever. Though manufactured in

Pakistan for the local market by Unilever Pakistan Ltd, as an international brand, it maintains an

international quality for the product. Formula given by Research and Development departments

in foreign countries, LUX is produced in Pakistan from imported raw materials like sodium soap,

glycerol and different extracts according to flavors, coming from Unilever plants situated abroad.

LUX is offered in Pakistan in six different flavors which are:

LUX Energizing Honey,

LUX Golden Glow,

LUX Nature Pure,

LUX Orchid Touch,

LUX Almond Delight and

LUX Aqua Sparkle.

Orchid touch Almond delight Energizing fruit Aqua sparkle

Taking into account the convenience of its customers, the company manufactures all flavors of

LUX in three different sizes,

40gm,

80gm and

120gm.

PriceThough Unilever Pakistan gives its LUX customers a lot in terms of the product itself, it cannot

provide a better pricing. This is due to some constraints in the beauty soap industry. Beauty soap

is a product with a vulnerable demand in Pakistan. A change in price has a high risk of creating

price war among the rivals which will eventually cause a loss of profit. Its prices are almost

equal to its competitor. Company carries out research on competitors’ price and brand loyalty

when it feels extreme necessaity of chaging price. The brand loyalty test is an exploratory

research which is known as Brand Health Check-Up (BHCU).

PlaceUnilever Pakistan Ltd. has a huge distribution channel for LUX all over the country as its sales

reach more than 10 million pieces a year. The company has six huge warehouses, one in each

division of Pakistan.

The company does not use its own fleet of transport for distributing its product. However, it has

outsourced its distribution process to various third party distributors, exclusively dedicated to

Unilever Pakistan Ltd. These distributors then supply the product all over Pakistan 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 Pakistan because of a recent increase in

demand of its product to all segments of the population.

PromotionUnilever Pakistan undertakes huge promotional activities to promote LUX which has topped the

beauty soap industry of Pakistan. It spends almost 20% to 25% of its Net Proceeds from Sales

(NPC) of LUX for promotional activities for LUX.

It’s certain annual promotional campaigns like LUX Superstar and LUX Annual Style Awards

has made the product a part of the glamour world. Since the 1930s, over 400 of the world’s most

stunning and sensuous women have been proudly associated with Lux advertisements. They do

not only promote LUX in Pakistan for the beauty conscious females, it also promotes the brand

for males and the company proved that, by including world famous male celebrity Shahrukh

Khan and Shan for their advertising campaign.

Unilever Pakistan Ltd spends a huge amount of money for promoting LUX through TV

commercials, newspaper advertisements and billboards. Moreover it also undertakes small

promotional campaigns at different schools, colleges, universities and recreational parks with

winners of its Zonal Beauty Contests. Till now promotional activities of LUX has always been

successful which has made it a household common name and helped it reach almost one billion

taka sale value in the year 2004.

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 time. Lux remains the leading soap

brand in Pakistan, representing the stylish class of Pakistan. Things started with a TV show

called Lux Style Ki Duniya, now with the country's leading models and actors taking part in the

annual Lux Style Awards every year. Ali Zafar the famous Pakistani Singer has become the first

male model for Lux.