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Marketing Project Report on Lux Soap

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Marketing Project Report
on Lux Soap
By:
Amit Kumar Sinha
PGDMRM-002
IPE, Hyderabad
Contents:
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Company Profile – HUL
Distibution Channel - HUL
Product Mix – HUL
Overview – Lux Soap
Marketing Mix
SWOT Analysis
Competitor Analysis
Market Segmentation
пѓ� Recommendation
пѓ� Reference
Company Profile - HUL
Company Profile - HUL
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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%
Revenue Percentage:
Distribution Channel - HUL
Distribution Channel - HUL
пѓј 2000+ Suppliers and associates
пѓј4000 Redistribution stockists
пѓјCovering 1 million retail outlets
пѓјReaching 250 million rural consumers
Product Mix- HUL
The width of the HUL Product mix:
пЃ¶ The width of the product mix refers to the number of
different product line the company carries
E.g:
пѓј Personal wash
пѓј Laundry
пѓј Skin care
пѓј Oral care
пѓј Deodorants
пѓј Colour cosmetics
пѓј Ayurvedic personal and health care
пѓј Shampoo
пѓј Tea
пѓј Coffee
пѓј Foods
пѓј Ice cream
Width = 12
The lenght of the HUL Product mix:
пЃ¶ The Lenght of the product mix refers to the total number of
items in the product mix.
E.g:
пѓј Personal wash: Lux, Lifebuoy, Liril, Hamam, Breeze, Dove,
Pears, Rexona
пѓј Laundry: Surf excel, Rin, Wheel
пѓј Skin care: Fair & Lovely, Ponds, Vaseline, Aviance
пѓј Oral care: Pepsodent, Close up
пѓј Deodorants: Axe, Rexona
пѓј Colour cosmetics: Lakme
пѓј Ayurvedic personal and health care: Ayush
пѓј Shampoo: Sunsilk, Clinic
пѓј Tea: Broke bond, Lipton.
пѓј Coffee: Bru
пѓј Foods: Kissan, Annapurna, Knorr
пѓј Ice cream: Kwality walls
Width = 30
The Depth of the HUL Product mix:
пЃ¶ 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:
пЃ¶ 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.
Overview : Lux Soap
 1916 – Laundry soap
 1925 – Bathroom soap
 India – 1929
пѓј First brand ambassador: Leela Chitnis (1929)
пѓј Market share is almost equal to Lifebuoy
Marketing Mix:
Product:
пѓ�Product Classification:
пѓјTangible
пѓјNon durable good
пЃ¶ Lux and other soaps fall into the category of
convenience good.
Product Life Cycle:
Maturity Stage
Prominent Variants:
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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.
Logo:
Labelling:
Lux trade character or logo is present prominently
in the package
Female model
Displayed graphically – Key ingredients
Packaging:
Different colors – Different variants( Saffron –
Saffron variants & Pink – Rose extracts etc. )
Package size – 100gm, 120gm, 150 gm
Launched – Mini Lux – 45gm - Rs 5
Price:
пѓј Competitive prices: Neither high nor low
Place:
 HUL distribution network – key strength
(Which helps reach out its product across the length
and width of the vast country)
пѓј 2000+ Suppliers & Associates
пѓј 7000 Stockists
пѓј Direct coverage in over 1 million retail outlets
Network:
�Factory – Company warehouses – Distributor –
Market
�Factory – Wholesaler & Big retailers (Bulk orders) –
30% Sales
Promotion:
пѓ�Active since 1929
пѓ�Featured all top actress of their times.
пѓ�Idea: if it is good enough for a film star, it is good
for me.
First Male Brand Ambassador:
South India:
1970 – Jayalalitha
Shriya Sharan
Sales Promotion:
 Lux gold star offer: 22 Carat Gold coin in the Soap –
First 10 caller (Extra 30 gm gold)
пѓјLux star bano, Aish karo contest: A special
promotional pack of lux soap – Scratch card -50 lucky
winner got the chance to meet Aishwarya rai.
SWOT Analysis
Strengths:
�Strong market research (Door to door sampling – once
in a year – Rural and Urban area.)
пѓ�Many variants (Almond oil, Orchid extracts, Milk
cream, Fruit extracts, Saffron sandalwood oil and
Honey)
пѓ�Strong sales and distribution network backed by
HUL
пѓ�Strong brand image
�Dynamically continuous innovations – New variants
and innovative promotions (22 carat gold coin
promotion – “Chance Hai”)
�Strong brand promotion but relatively lower prices –
Winning combination.
пѓ�Mass appeal/Market presence across all segments (
15% of soap market)
Weakness:
пѓ�Mainly positioned as beauty soap targeted towards
women, lack unisex appeal
пѓ�Some variation like the sunscreen, international
variant did not do well in the market
пѓ�Not much popular in rural areas
Opportunities:
пѓ�Soap industry is growing by 10% in India
пѓ�Beauty segments compounded annual growth rate
(CAGR) is very high
�Liquid 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
Threats:
�High internal competition (Pears – Beauty segment)
пѓ�New entrants (Vivel)
�Maturity stage – threat of slipping down to decline
stage – if constant reinvention is not carried out
Competitor Analysis
Internal Competitor:
пѓ�Lifebuoy: 1895, 18% Market shares
External Competitor:
пѓ� Godrej consumers products limited (GCPL):
пѓј 2nd Largest soap maker after HUL
пѓј9.2% Market share
пѓјBrands: Cinthol, Fairglow, Nikhar
пѓ� Wipro:
пѓј Brand: Santoor (No 1 in AP) and Chandrika
пѓ�ITC:
пѓј1.75% growth in initial five months
пѓјBrand: Superia, Fiama di wills and Vivel
пѓјSold in six states
Market segmentation
Market segmentation of Lux
пѓ�Gender: Female
пѓ�Age: 16-35
пѓ�Income: Middle income group (Rs. 15 to 20)
пѓ�Highest selling beauty soap in urban area (Rural area:
Lifebuoy)
�Expensive – Affordable,
�Target Area: Urban and Sub urban – Upper middle
and middle class people
Product Positioning of Lux
� Created Good Position – Buyers mind – Better product
attributes, price and quality
пѓ� 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.
пѓ� Market share of HUL: 54.3%
пѓ� Market share of LUX: 15%
� Better Positioning – Market leader of beauty soap
Recommendation:
Recommendation:
пѓ�Ayurvedic variant
пѓ�Lux kids special soap
пѓ�Target rural area
пѓ�Target male customers
References:
References:
пѓ�www.capitaline.com
пѓ�www.hul.com
пѓ�www.google.com
пѓ�www.wikipedia.com
пѓ�www.mbaparadise.com
пѓ�www.fmcg.com
Questions???
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