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Marketing Project Report on Lux Soap
By:Amit Kumar Sinha
PGDMRM-002IPE, Hyderabad
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Contents:
Company Profile – HUL Distibution Channel - HUL Product Mix – HUL Overview – Lux Soap Marketing Mix SWOT Analysis Competitor Analysis Market Segmentation
Recommendation Reference
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Company Profile - HUL
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Company Profile - HUL
• A 52% owned subsidiary of Anglo Dutch giant Unilever.• India – 1888• India largest FMCG company • Touching 2 out of 3 Indian consumer • 20 distinct categories – Home and personal care
products, food and beverages.• HLL – HUL• 100 factories – India – Manufacturing its diverse
product range • Headquarter: Mumbai• Market share – Toilet soap category – 54.3%
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Revenue Percentage:
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Distribution Channel - HUL
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Distribution Channel - HUL
2000+ Suppliers and associates
4000 Redistribution stockists
Covering 1 million retail outlets
Reaching 250 million rural consumers
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Product Mix- HUL
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The width of the HUL Product mix: The width of the product mix refers to the
number of different product line the company carries
E.g: Personal washLaundry Skin care Oral careDeodorantsColour cosmeticsAyurvedic personal and health care
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ShampooTea CoffeeFoods Ice cream
Width = 12
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The lenght of the HUL Product mix: The Lenght of the product mix refers to the
total number of items in the product mix.
E.g: Personal wash: Lux, Lifebuoy, Liril, Hamam,
Breeze, Dove, Pears, RexonaLaundry: Surf excel, Rin, Wheel Skin care: Fair & Lovely, Ponds, Vaseline,
Aviance Oral care: Pepsodent, Close upDeodorants: Axe, RexonaColour cosmetics: LakmeAyurvedic personal and health care: Ayush
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Shampoo: Sunsilk, ClinicTea: Broke bond, Lipton.Coffee: BruFoods: Kissan, Annapurna, Knorr Ice cream: Kwality walls
Width = 30
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The Depth of the HUL Product mix:
The depth of the product mix refers to the number of variants of each product offered in the line
E.g: If close up toothpaste comes in three formulation and in three sizes, close up has a depth of 9 (3*3)
The Consistency of the HUL Product mix: The consistency of the product mix refers to how
closely related the various product lines are in the use, production requirement, distribution channel or in any other manner.
HUL Product line are not consistent because of its large width.
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Overview : Lux Soap
1916 – Laundry soap
1925 – Bathroom soap
India – 1929
First brand ambassador: Leela Chitnis (1929)
Market share is almost equal to Lifebuoy
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Marketing Mix:
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Product:
Product Classification:
TangibleNon durable good
Lux and other soaps fall into the category of convenience good.
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Product Life Cycle:
Maturity Stage
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Prominent Variants:
Lux almond Lux orchid Lux fruit Lux saffron Lux sandalwood Lux rose Lux international Lux chocolate Lux aromatic extracts Lux oil and honey glow etc.
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Logo:
Labelling:Lux trade character or logo is present prominently in the package
Female model
Displayed graphically – Key ingredients
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Packaging:
Different colors – Different variants( Saffron – Saffron variants & Pink – Rose extracts etc. )
Package size – 100gm, 120gm, 150 gm
Launched – Mini Lux – 45gm - Rs 5
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Price: Competitive prices: Neither high nor low
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Place: HUL distribution network – key strength (Which helps reach out its product across the length and width of the vast country) 2000+ Suppliers & Associates
7000 Stockists Direct coverage in over 1 million retail outlets
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Network:
Factory – Company warehouses – Distributor – Market
Factory – Wholesaler & Big retailers (Bulk orders) – 30% Sales
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Promotion:Active since 1929
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Featured all top actress of their times.
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Idea: if it is good enough for a film star, it is good for me.
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First Male Brand Ambassador:
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South India:1970 – JayalalithaShriya Sharan
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Sales Promotion:
Lux gold star offer: 22 Carat Gold coin in the Soap – First 10 caller (Extra 30 gm gold)
Lux star bano, Aish karo contest: A special promotional pack of lux soap – Scratch card -50 lucky winner got the chance to meet Aishwarya rai.
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SWOT Analysis
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Strengths:
Strong market research (Door to door sampling – once in a year – Rural and Urban area.)
Many variants (Almond oil, Orchid extracts, Milk cream, Fruit extracts, Saffron sandalwood oil and Honey)
Strong sales and distribution network backed by HUL
Strong brand image
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Dynamically continuous innovations – New variants and innovative promotions (22 carat gold coin promotion – “Chance Hai”)
Strong brand promotion but relatively lower prices – Winning combination.
Mass appeal/Market presence across all segments ( 15% of soap market)
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Weakness:
Mainly positioned as beauty soap targeted towards women, lack unisex appeal
Some variation like the sunscreen, international variant did not do well in the market
Not much popular in rural areas
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Opportunities:
Soap industry is growing by 10% in IndiaBeauty segments compounded annual
growth rate (CAGR) is very highLiquid body wash is currently in growth
stage – Lux should come out with more variants in this segment
Large market share – Strong hold over the market
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Threats:
High internal competition (Pears – Beauty segment)
New entrants (Vivel)
Maturity stage – threat of slipping down to decline stage – if constant reinvention is not carried out
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Competitor Analysis
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Internal Competitor:
Lifebuoy: 1895, 18% Market shares
External Competitor: Godrej consumers products limited
(GCPL): 2nd Largest soap maker after HUL9.2% Market shareBrands: Cinthol, Fairglow, Nikhar
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Wipro: Brand: Santoor (No 1 in AP) and
Chandrika
ITC: 1.75% growth in initial five monthsBrand: Superia, Fiama di wills and
VivelSold in six states
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Market segmentation
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Market segmentation of Lux
Gender: FemaleAge: 16-35 Income: Middle income group (Rs. 15 to
20)Highest selling beauty soap in urban area
(Rural area: Lifebuoy)Expensive – Affordable, Target Area: Urban and Sub urban –
Upper middle and middle class people
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Product Positioning of Lux
Created Good Position – Buyers mind – Better product attributes, price and quality
Offering product in a different way Offering – improved quality of the product –
affordable price with high branding – to position the product as a best quality beauty soap in buyers mind.
Market share of HUL: 54.3% Market share of LUX: 15% Better Positioning – Market leader of beauty
soap
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Recommendation:
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Recommendation:
Ayurvedic variant
Lux kids special soap
Target rural area
Target male customers
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References:
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References:
www.capitaline.com www.hul.com www.google.com www.wikipedia.com www.mbaparadise.com www.fmcg.com
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Questions???