Marketing Project Report on Lux Soap By: Amit Kumar Sinha PGDMRM-002 IPE, Hyderabad Contents: пѓ� пѓ� пѓ� пѓ� пѓ� пѓ� пѓ� пѓ� Company Profile вЂ“ HUL Distibution Channel - HUL Product Mix вЂ“ HUL Overview вЂ“ Lux Soap Marketing Mix SWOT Analysis Competitor Analysis Market Segmentation пѓ� Recommendation пѓ� Reference Company Profile - HUL Company Profile - HUL вЂў вЂў вЂў вЂў вЂў вЂў вЂў вЂў вЂў A 52% owned subsidiary of Anglo Dutch giant Unilever. India вЂ“ 1888 India largest FMCG company Touching 2 out of 3 Indian consumer 20 distinct categories вЂ“ Home and personal care products, food and beverages. HLL вЂ“ HUL 100 factories вЂ“ India вЂ“ Manufacturing its diverse product range Headquarter: Mumbai Market share вЂ“ Toilet soap category вЂ“ 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 пѓј 1916 вЂ“ Laundry soap пѓј 1925 вЂ“ Bathroom soap пѓј India вЂ“ 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: пѓј пѓј пѓј пѓј пѓј пѓј пѓј пѓј пѓј пѓј 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 вЂ“ Key ingredients Packaging: Different colors вЂ“ Different variants( Saffron вЂ“ Saffron variants & Pink вЂ“ Rose extracts etc. ) Package size вЂ“ 100gm, 120gm, 150 gm Launched вЂ“ Mini Lux вЂ“ 45gm - Rs 5 Price: пѓј Competitive prices: Neither high nor low Place: пѓј HUL distribution network вЂ“ 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: пѓ�Factory вЂ“ Company warehouses вЂ“ Distributor вЂ“ Market пѓ�Factory вЂ“ Wholesaler & Big retailers (Bulk orders) вЂ“ 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 вЂ“ Jayalalitha Shriya Sharan Sales Promotion: пѓј Lux gold star offer: 22 Carat Gold coin in the Soap вЂ“ First 10 caller (Extra 30 gm gold) пѓјLux star bano, Aish karo contest: A special promotional pack of lux soap вЂ“ Scratch card -50 lucky winner got the chance to meet Aishwarya rai. SWOT Analysis Strengths: пѓ�Strong market research (Door to door sampling вЂ“ once in a year вЂ“ 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 пѓ�Dynamically continuous innovations вЂ“ New variants and innovative promotions (22 carat gold coin promotion вЂ“ вЂњChance HaiвЂќ) пѓ�Strong brand promotion but relatively lower prices вЂ“ 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 пѓ�Liquid body wash is currently in growth stage вЂ“ Lux should come out with more variants in this segment пѓ�Large market share вЂ“ Strong hold over the market Threats: пѓ�High internal competition (Pears вЂ“ Beauty segment) пѓ�New entrants (Vivel) пѓ�Maturity stage вЂ“ threat of slipping down to decline stage вЂ“ 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) пѓ�Expensive вЂ“ Affordable, пѓ�Target Area: Urban and Sub urban вЂ“ Upper middle and middle class people Product Positioning of Lux пѓ� Created Good Position вЂ“ Buyers mind вЂ“ Better product attributes, price and quality пѓ� Offering product in a different way пѓ� Offering вЂ“ improved quality of the product вЂ“ affordable price with high branding вЂ“ 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% пѓ� Better Positioning вЂ“ 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???