LUX brings out the star in you!

ACKNOWLEDGEMENT

We would like to thanks Miss NADIA SHAH for assigning

such an interesting project which has really explored our real
talent and it helped us to make projects for our professional life.
It has been really knowledge sharing experience to make
this project. We would also like to thanks Mr. NAJAM SADIQUE
the project sells officers LUX Pakistan for helping us to make us
better known what basically marketing mix of LUX is.

Mohammad Waqas Arif Mohammad Waqas Aslam

Naimat Ullah

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Introduction
Unilever at a Glance:
Unilever is one of the world’s largest and leading multinational companies; Unilever
commenced their business activities on a larger scale by setting up their first factory in
Netherlands, in the year of 1872. Operating in Pakistan for over the last four decades the
company is trying to significantly contribute towards the augmentation of the standard of
living by bringing world class high quality products at the door step of their customers. The
usage of Unilever products by over 90% of the people in Pakistan stands a testimony to their
successful operation. . Their array of products show that they produce household care, fabric
cleaning, skin cleansing, skin care, oral care, hair care, personal grooming, and tea based
beverage products under worldwide famous brand names Wheel, LUX, Lifebuoy, Fair &
Lovely, Pond's, Close Up, Sunsilk, Lipton, Lipton Taaza, Pepsodent, All Clear, Vim, Surf
Excel, and Rexona.

Unilever Today:
Unilever is now the world’s largest company. It is present on all five continents, has
an annual turnover 84 billion runs 714 factories in 81 countries, 340 operating Companies,
and more than 721,000 employees the world over. And 200000 employees in the Pakistan.
The company owes its current status to the pioneering spirit inherited from its founders
which continues to inspire it, to its constant search for new ways of satisfying man’s
mutational needs. Wherever possible, it sets up factories locally, employs personnel from the
country concerned and relies on indigenous raw materials. Its support in Pakistan in
agricultural educational cultural assistance to improve the quality and yield of the raw
materials it uses. Much attention is devoted to professional training and to the integration of
the company in its economics and social environment.

Objective of this project:

This project is an outcome of an analysis of marketing strategies used by Unilever
Pakistan Ltd. The main purpose of the project is to find what strategies the company uses to
market its world famous beauty soap, LUX, in Pakistan; the positive and negative aspects of

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those strategies. The project further analyzes the position of Unilever Pakistan Ltd. in the
toiletry industry in comparison to its competitors. The project discusses the process of using
market segmentation, target marketing, the product, pricing, promotional and distribution
strategies and a competitive analysis.

Methodology of this project:

For accessibility and availability of information we have chosen to work on the
strategies of Unilever Pakistan Ltd. As the company operates in the market with a huge
number of products in different industries, we have decided to focus on one of their world
wide successful brands, LUX. Most of the information used in this project is from primary
Sources. The main source of information was the focus group discussion. In addition
information was also collected from websites.

Glamour factor:
We all want to be pampered, to look and feel great, to
enjoy that moment when anything seems possible. And that's just
what LUX offers you on a daily basis at a price you can afford.
LUX has been winning hearts of Pakistani consumers for 50 years.
Throughout this time, LUX has been closely associated with many
of the most glamorous and sensual women of the age. Marilyn
Monroe, Demi Moore and Catherine Zeta-Jones are some of the
stars who've appeared in LUX ads. In Pakistan, leading celebrities like Babra Sharif, Meera
and Aaminah Haq have endorsed the brand.
Key facts:
First mass marketed toilet soap launched in 1924Sold in over 100 countries market
leader in various countries including Saudi Arabia, Brazil, India LUX Almond Delight comes
with the deep moisturization of exotic Peach, Cream and precious Almond Oil. LUX Nature
Pure has nourishing oil of Cade and cucumber extracts for a radiant and clear skin. LUX
Orchid touch comes with the delicate touch of rare orchids and precious Jojoba Oil, for a
softer and fragrant skin. LUX Energising Fruit incorporates the beauty secrets of Fruit
Extracts, rich Milk Cream and Honey, for a fresh renewed feeling.

From our range:

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Orchid touch Almond delight Energising fruit Aqua sparkle

HISTORY
LUX Soap:
Was first launched in the UK in 1899 as a flaked version of Sunlight soap.
Subsequently it was launched in the US in 1916, and marketed as laundry soap targeted
specifically at 'delicates'. Lever Brothers encouraged women to home launder their clothes
without fear of satins and silks being turned yellow by harsh lyes that were often used in
soaps at the time. The flake-type soap allowed the manufacturer some leeway from lye
because it did not need to be shaped into traditional cake-shaped loaves as other soaps were.
The result was a gentler soap that dissolved more readily and was advertised as suitable for
home laundry use. LUX is currently a product of Unilever. The name "LUX" was chosen as
the Latin word for "light" and because it was suggestive of "LUX."
LUX Toilet Soap:
Was introduced as bathroom soap in the US in 1925 and in the UK in 1928 as
a brand extension of LUX soap flakes. Subsequently LUX soap has been marketed in several
forms, including hand wash, shower gel and cream bath soap.
Pakistan:
LUX has been widely advertised in Pakistan ever since the brand was introduced.
Pakistani models including Reema Khan, Meera, Aaminah Haq, Babra sharif and various
other leading models and actresses have been "LUX models" from time to time. LUX remains
the leading soap brand in Pakistan, representing the stylish class of Pakistan. Things started
with a TV show called LUX Style Ki Duniya, now with the country's leading models and
actors taking part in the annual LUX Style Awards every year. Ali Zafar the famous Pakistani
Singer has become the first male model for LUX.

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Other Countries:
LUX soap is very popular in Nepal and the brand appointed Nepali model-turned-
actress Jharana Bajracharya to be the LUX Girl in the summer of 2003. After that, she
appeared on many TV commercials. Nigerian actress Genevieve Nnaji appeared as the face
of LUX soap in 2004. Two decades earlier, singer Patti Boulaye had been Nigeria's face of
LUX. In Norway during the 1950s and 1960s, LUX advertisements featured fictional Italian
actresses. LUX soap is also a category leader in Pakistan, the brand being synonymous with
glamour. While initially it was also marketed as the beauty soap of the film stars, recently it
is focusing more on bringing out the star in ordinary people. Current brand ambassador is
Iman Ali.

Product Category, Market Segmentation, Target Marketing

and Positioning

Product Category:

LUX falls under the category of toiletry product as a beauty soap.

Market Segmentation:
The company claims that LUX is the highest selling beauty soap in Pakistan.
Moreover some survey project s also reveals the same result.though LUX is the highest
selling beauty soap in Pakistan, it does not go for traditional mass marketing. Moreover as a
beauty soap LUX does not even segment its market according to gender.unilever Pakistan
Ltd. segments their market according to geographical areas. The population of the country is
segmented into three parts which are urban, sub urban and rural area consumers.The
company further differentiate the geographical segments according to Socio Economic
Cluster (SEC) i.e. education and Income. The SEC divides the population in five segments
starting from A to E, where A categorizes the highly educated and high income earners
holders, and sequentially in descending order E categorizes the opposite.

Target Market:

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Urban and sub urban middle class, and rural poor people are the largest part of
Pakistan population. A research carried out by Unilever Pakistan reveals that urban rich
people are more likely to buy imported and expensive products. Moreover rural poor people
tend to buy cheap products even without evaluating its quality. However urban and sub urban
upper middle and middle class people tend to buy affordable and quality products.

LUX is not a highly expensive but an affordable product. That is why the company
targets urban and sub urban upper middle and middle class people who are the second highest
population of segment of the country. From the segmentation of customer according to SEC
they target category A, B and C, because they are assumed to be financially well-off and can
afford to buy LUX.

Product Positioning:
Unilever Pakistan Ltd obtained a good position in the buyers’ mind through better
product attributes, price and quality, offering the product in a different way than the
competitors do. The company offers improved quality of products in the industry at an
affordable price with high branding, which ultimately helps to position the product in the
buyers’ mind as the best quality beauty soap.

The market share of the company in the beauty soap industry is somewhere around
43%.Since in the beauty soap industry all products are of same price Unilever cannot provide
its consumers with better price but it is in a great position in reference with its packaging,
fragrances and product designing. LUX’s position in the consumers mind on two dimensions,
price and quality. in comparison to its competitors the pricing of LUX is same but consumers
rate it as the product which gives them the highest quality. This positioning created a strong
customer loyalty for LUX, for which it the market leader in the industry.

SWOT Analysis
Strengths:
• Worldwide fame of Unilever.

• Unilever is High reputable company.

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• Keeping high quality standards.

• Integrated distribution and warehousing facilities.

• Successful related diversification.

• Generic brand name of LUX

• Large market share of Unilever.

Weaknesses:
• Unable to compete the competitor product in advertisement.

• The Product is not penetrated really well in the Market.

• The Product is not easily visible in any Store.

• Not yet ISO certified.

Opportunities:
• Population growth rate.

• High urbanization rate.

• High literacy rate.

• Flexible government policies for industry.

• Threats

• High inflation rate.

• Change in manufacturing technology.

• Low purchasing power.

• Decrease in GDP growth rate.

• Increasing interest rates.

• Decreasing investment.

• Recessionary period in business cycle

Packaging:

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Packaging is the visible face of our brands. It plays an important role in consumer
Choice, and allows the communication of important safety and usage information. It also
protects our products from damage and contamination. Yet concern over excess packaging is
growing. Individuals, governments and Campaigning organizations are increasingly alert to
what they see as unnecessary levels of packaging. This has led to commitments by leading
retailers to reduce the packaging of the products they sell. At the same time, if consumer
products are to succeed in the competitive retail market they need attractive, well-presented
packaging that communicates brand identity while still being acceptable to consumers on
Environmental grounds. We need to be able to reconcile these conflicting objectives. While
consumers can drive change through their purchasing decisions, they also need to be part of
the solution through the way they dispose of used packaging. This in turn depends on the
domestic recovery and recycling infrastructure provided by municipal authorities and the
targets set by national governments. A complex picture In reality, totally sustainable
packaging is very difficult to achieve. Each type of packaging material has a different
footprint; some with more environmental impacts in sourcing, some in disposal; some with a
greater impact on resource use, others in energy or water use. Often the best solutions are not
the obvious ones.

Using the Tactical Marketing Tools

Product:
LUX is an internationally renowned beauty soap brand of Unilever. Though
manufactured in Pakistan for the local market by Unilever Pakistan Ltd, as an international
brand, it maintains an international quality for the product. Formula given by Research and
Development departments in foreign countries, LUX is produced in Pakistan from imported
raw materials like sodium soap, glycerol and different
extracts according to flavors,
coming from Unilever plants
situated abroad.

LUX is offered in
Pakistan in six different flavors
which are: LUX Energizing

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Honey, LUX Golden Glow, LUX Nature Pure, LUX Orchid Touch, LUX Almond Delight and
LUX Aqua Sparkle. Taking into account the convenience of its customers, the company
manufactures all flavors of LUX in three different sizes, 40gm, 80gm and 120gm.
Price:
Though Unilever Pakistan gives its LUX customers a lot in terms of the product itself,
it cannot provide a better pricing. This is due to some constraints in the beauty soap
industry.Beauty soap is a product with a vulnerable demand in Pakistan. A change in price
has a high risk of creating price war among the rivals which will eventually cause a loss of
profit. Its prices are almost equal to its competitor. If we compares LUX’s price with its major
competitor. Company carries out research on competitors’ price and brand loyalty when it
feels extreme necessaity of chaging price. The brand loyalty test is an exploratory research
which is known as Brand Health Check-Up (BHCU).
Place:
Unilever Pakistan Ltd. has a huge distribution channel for LUX all over the country as
its sales reach more than 10 million pieces a year. The company has six huge warehouses,
one in each division of Pakistan, where the product goes after they are manufactured at
Kalurghat factory. The company does not use its own fleet of transport for distributing its
product. However, it has outsourced its distribution process to various third party
distributors, exclusively dedicated to Unilever Pakistan Ltd. These distributors then supply
the product all over Pakistan to a huge number of retailers. Even though LUX targets the
urban and sub urban middle and upper middle class people they are distributing their
products all over Pakistan because of a
recent increase in demand of its product
to all segments of the population.
Promotion:
Unilever Pakistan undertakes
huge promotional activities to promote
LUX which has topped the beauty soap

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industry of Pakistan. It spends almost 20% to 25% of its Net Proceeds from Sales (NPC) of
LUX for promotional activities for LUX
It’s certain annual promotional campaigns like LUX Channel i Superstar and LUX
Channel i Annual Cinema Awards has made the product a part of the glamour world. Since
the 1930s, over 400 of the world’s most stunning and sensuous women have been proudly
associated with LUX advertisements. They do not only promote LUX in Pakistan for the
beauty conscious females, it also promotes the brand for males and the company proved that,
by including world famous male celebrity Shahrukh Khan for their advertising campaign.

Unilever Pakistan Ltd spends a huge amount of money for promoting LUX through
TV commercials, newspaper advertisements and billboards. Moreover it also undertakes
small promotional campaigns at different schools, colleges, universities and recreational
parks with winners of its Zonal Beauty Contests. Till now promotional activities of LUX has
always been successful which has made it a household common name and helped it reach
almost one billion taka sale value in the year 2004.

Point of Purchases:
The LUX is not given a notable placement on the shelves of different retail shops &
departmental stores for its sales promotion. Usually the company goes for wide display in the
stores where it potential for its product. Different eye-catching decorations are made inside
the store and in the showcase for outside display. These arrangements are made with the
assistance of the sales people of the company.
Advertisements:
The message that the product reflects in its advertisements is the one that is usually
narrated by the corporate itself

The message is based upon

“LUX brings out the star in you!”

Selection of Media:
There are number of Sources available for passing the product message. These are as
follows;

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• Television
• Outdoor (Billboards)
• Magazines
• Newspapers
• Brochures
• Internet

Impact on Sales:
The company believes that ads do have adequate impact on sales. In order to meet the
company policy of maintaining and strengthening the corporate image, the ads are shown on
television. There is a long-term strategy in the books of Unilever to disturb the loose Soap
market. They usually show documentary from time to time regarding the flaws in loose Soap
quality. It is usually shown without any discrimination, i.e., without mentioning any Soap
name or company name in the documentary.
Public Relations:
In order to build healthy relations with the consumers, the company has established a
consumer department to manage the complaints of the end-users. A legal department is also
dealing with the legal issues and media war. If any news is published in a newspaper that
harms the product image, a persuasive message is published in that newspaper to counter the
rumor.
Sponsoring Events:
The company goes for sponsoring events in order to heighten the company and brand
image. Mostly the company goes for financing such kind of events in which its product has
got some room to build likeness. The company also goes for sponsoring fashion shows in
different cities.
Distribution:
LUX goes for indirect channel of distribution. The hierarchy of the distribution
channel is as follows.
• Manufacturer
• Distributor
• Retailer

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• Consumer
The distribution strategy pursued by the Unilever is intensive. It means that the product
distribution is covering wide market. There are regional headquarters of the company in all
the big cities of the country. There is a distributor in each big city. In order to reach remote
areas, a distributor engages a sub-distributor for a small area. The company is directly linked
with the main distributor and the sub-distributor has no such direct contact with the company.
The company provides the Life Buoy inventory to the main distributor that is further
dispatched to retailers and sub-distributors.

There is a regional manager of Unilever that employs Area Sales Manager for a specific
area then comes the Territory Sales Officer (TSO). TSO is directly linked with the
distributors to set and achieve targets. The targets vary from area to area and are set on the
basis of history of the area sales. As the sales targets depend upon the area history of sales;
these are usually achievable. If these targets are facing some kind of setback, the promotional
schemes based on areas are announced as discussed earlier.

Analyzing the Market for LUX

For better comprehension of Unilever Pakistan, its marketing strategy, product

quality, positioning and placement, we present here a comparative analysis of its competitors.
This part of the project illustrates the market share of different companies in the beauty soap
industry.

Market Share:

The beauty soap industry in Pakistan consists of only seven major producers.
Unilever Pakistan Ltd is operating in the industry with its world famous brand LUX. Out of
these giant companies Unilever Pakistan Ltd is the market leader with a share of around 43%.

Other companies in the industry are not as big as Unilever Pakistan Ltd but they are
posing threat to the company by a tendency of a gradual increase in their market share.
Kohinoor Chemicals which is operating with the brand name Tibet is an extremely famous
brand to the rural segment of the population and possess a significant share in that segment

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which is the largest population group in Pakistan. Moreover Keya Cosmetics Ltd operating
with the brand name Keya and Marks & Allys Ltd operating with the brand name Aromatic
are also uprising brands to both the rural and sub urban segment of the population.

Moreover a recent takeover of Aromatic by multinational consumer product giant

MARICO who operates with famous brands in other industries like Parachute Coconut Oil is
posing to be a threat to Unilever Pakistan’s market share.

Conclusion
The beauty soap industry of Pakistan consists of a few producers in the industry. The
demand for this product is very much vulnerable in terms of pricing. Unilever Pakistan is
providing LUX. at a price which is affordable to most of the people in the country. Beauty
soap is an uprising product in Pakistan as a greater portion of the population, both male and
female, are now getting more beauty conscious. As a multinational company Unilever
Pakistan with heavy promotional activities, has been able to penetrate the market.

With six different fragrances, three different sizes, international standard and high
quality design, as a product, LUX has been highly successful over the years. Its distribution
process is highly efficient. Its promotional activities, like the beauty contest has been a
milestone in attracting a huge number of customers. Overall with its marketing activities
LUX has been a successful brand.
The only place where rival companies are progressing is in giving customers
redemption offers. Research revealed that Pakistani customers are highly attracted to this sort
of offers. These offers are not sustainable in the long run but still it takes away a considerable
part of LUX’s sale in the short run.

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Recommendation
In this project the team would suggest some recommendations to Unilever Pakistan
Ltd. to adopt more successful operation in Pakistan. Since a huge portion of the rural poor
people is demanding LUX in recent days, Unilever Pakistan Ltd should expand their target
market also towards the rural people. They should also conduct different promotional
activities in rural fairs and socially responsible promotional activities to attract rural
consumers and social awareness .Because LUX has different skin type soap so now if they
provide different types of beauty soaps for male and female soapunder the same brand name
i.e. LUX it might increase their sales. Lastly, as Pakistani culture children have a huge say in
shopping so they should also promote the product to children like their another brand
“Dove”. These are the recommendations suggested by teem members to Unilever Pakistan
Ltd. to adopt for a more successful operation in Pakistan with large market share.

References

Marketing Management by Kotler 12th Edition.

Principle of Marketing by Kotler.

http://www.unilever.pk

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http://www.google.com

http://www.wikipedia.com

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