1. Marketing Project Report on Lux Soap
By: Amit Kumar Sinha PGDMRM-002 IPE, Hyderabad 1

2. Contents: Reference Company Profile – HUL Distibution Channel - HUL
Product Mix – HUL
Overview – Lux Soap
Marketing Mix
SWOT Analysis
Competitor Analysis
Market Segmentation
Recommendation
Reference 2

3. Company Profile - HUL

4. 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%

6. Revenue Percentage:

7. Distribution Channel - HUL

8. Distribution Channel - HUL
2000+ Suppliers and associates
4000 Redistribution stockists
Covering 1 million retail outlets
Reaching 250 million rural consumers

9. Product Mix- HUL

10. 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

11. Shampoo
Tea
Coffee
Foods
Ice cream
Width = 12

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

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

14. 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.

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

16. Marketing Mix:

17. Product: Product Classification: Tangible Non durable good
Lux and other soaps fall into the category of convenience good. 17

18. Product Life Cycle:
Maturity Stage 18

19. 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. 19

20. Logo:
Labelling:
Lux trade character or logo is present prominently in the package Female model Displayed graphically – Key ingredients 20

21. Packaging:
Different colors – Different variants( Saffron – Saffron variants & Pink – Rose extracts etc. ) Package size – 100gm, 120gm, 150 gm Launched – Mini Lux – 45gm - Rs 5 21

22. Price:
Competitive prices: Neither high nor low 22

23. 2000+ Suppliers & Associates
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 23

24. Network: Factory – Company warehouses – Distributor – Market
Factory – Wholesaler & Big retailers (Bulk orders) – 30% Sales 24

25. Promotion:
Active since 1929 25

26. Featured all top actress of their times.26

27. Idea: if it is good enough for a film star, it is good for me.27

28. 28

29. First Male Brand Ambassador:29

30. South India:
1970 – Jayalalitha Shriya Sharan 30

31. 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. 31

32. SWOT Analysis 32

33. 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 33

34. Mass appeal/Market presence across all segments ( 15% of soap market)
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) 34

35. 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 35

36. 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 36

37. 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 37

38. Competitor Analysis 38

39. Internal Competitor: External 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 39

40. Brand: Santoor (No 1 in AP) and Chandrika ITC:
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 40

41. Market segmentation 41

42. 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 42

43. 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 43

44. Recommendation: 44

45. Recommendation: Ayurvedic variant Lux kids special soap
Target rural area
Target male customers 45

46. References: 46

47. References: www.capitaline.com www.hul.com www.google.com 47

49. Questions??? 49