Analysis of Lux electronic advertising

Analysis of Lux electronic advertising

Marketing Project Report on Lux Soap By: Amit Kumar Sinha PGDMRM-002 IPE, Hyderabad

Contents:

Company Profile HUL Distibution Channel - HUL Product Mix HUL Overview Lux Soap Marketing Mix

SWOT Analysis Competitor Analysis Market Segmentation Recommendation Reference

Company Profile - HUL 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%

Revenue Percentage: Distribution Channel - HUL Distribution Channel - HUL 2000+ Suppliers and associates 4000 Redistribution stockists

Covering 1 million retail outlets Reaching 250 million rural consumers Product Mix- HUL 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 wash Laundry Skin care Oral care Deodorants Colour cosmetics Ayurvedic personal and health care

Shampoo Tea Coffee Foods Ice cream Width = 12 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, Rexona

Laundry: Surf excel, Rin, Wheel Skin care: Fair & Lovely, Ponds, Vaseline, Aviance Oral care: Pepsodent, Close up Deodorants: Axe, Rexona Colour cosmetics: Lakme Ayurvedic personal and health care: Ayush

Shampoo: Sunsilk, Clinic Tea: Broke bond, Lipton. Coffee: Bru Foods: Kissan, Annapurna, Knorr Ice cream: Kwality walls Width = 30 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.

Overview : Lux Soap 1916 Laundry soap 1925 Bathroom soap India 1929 First brand ambassador: Leela Chitnis (1929) Market share is almost equal to Lifebuoy

Marketing Mix: Product: Product Classification: Tangible Non durable good Lux and other soaps fall into the

category of convenience good. Product Life Cycle: Maturity Stage Prominent Variants: Lux

Lux Lux Lux Lux Lux Lux Lux Lux

Lux almond orchid fruit saffron sandalwood rose

international chocolate aromatic extracts 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: 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) 2000+ Suppliers & Associates

7000 Stockists Direct coverage in over 1 million retail outlets Network: Factory Company warehouses Distributor Market

Factory Wholesaler & Big retailers (Bulk orders) 30% Sales Promotion: Active since 1929 Featured all top actress of their times.

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)

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. SWOT Analysis 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 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) 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 Opportunities: Soap industry is growing by 10% in India 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) New entrants (Vivel) Maturity stage threat of slipping down to decline stage if constant reinvention is not carried out Competitor Analysis

Internal Competitor: Lifebuoy: 1895, 18% Market shares External Competitor: Godrej consumers products limited (GCPL): 2nd Largest soap maker after HUL

9.2% Market share Brands: Cinthol, Fairglow, Nikhar Wipro: Brand: Santoor (No 1 in AP) and Chandrika ITC: 1.75% growth in initial five months

Brand: Superia, Fiama di wills and Vivel Sold in six states Market segmentation Market segmentation of Lux Gender: Female

Age: 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

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 Recommendation: Recommendation:

Ayurvedic variant Lux kids special soap Target rural area Target male customers References: References:

www.capitaline.com www.hul.com www.google.com www.wikipedia.com www.mbaparadise.com www.fmcg.com Questions???

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