Product Life Cycle of Lux Soap
Product Life Cycle of Lux Soap
Product Life Cycle of Lux Soap
Introduction Stage
In the introduction stage, the firm seeks to build product awareness and
develop a market for the product. The impact on the marketing mix is as
follows:
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Life cycle of Lux soap
Growth Stage
In the growth stage, the firm seeks to build brand preference and increase
market share.
• Product quality is maintained and additional features and support
services may be added.
• Pricing is maintained as the firm enjoys increasing demand with little
competition.
• Distribution channels are added as demand increases and customers
accept the product.
• Promotion is aimed at a broader audience.
Maturity Stage
At maturity, the strong growth in sales diminishes. Competition may appear
with similar products. The primary objective at this point is to defend market
share while maximizing profit.
• Product features may be enhanced to differentiate the product from that
of competitors.
• Pricing may be lower because of the new competition.
• Distribution becomes more intensive and incentives may be offered to
encourage preference over competing products.
• Promotion emphasizes product differentiation.
Decline Stage
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soaps and moisturising bars. Lux beauty facial wash, Lux beauty bath
and Lux beauty shower were launched in 1992.
• In 2004, the entire Lux range was relaunched in the UK & Ireland to
include five shower gels, three bath products and two new soap bars.
2005 saw the launch of three exciting new variants with dreamy names
such as “Wine & Roses” bath cream, “Glowing Touch” and “Sparkling
Morning” shower gels.
Did you know?
• Since the 1930s, over 400 of the world’s most stunning and sensuous
women have been proudly associated with Lux advertisements. Marilyn
Monroe, Brigitte Bardot, Demi Moore and, more recently, our own
Catherine Zeta-Jones, have all been part of the Lux glamour story.
• The name Lux means ‘light’ in Latin, however the name was chosen for
its play on the word ‘luxury’.
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 "luxury."
Lux 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.
Lux soap was launched in India in 1929. The very first advertisement in 1929
featured Leela Chitnis as its brand ambassador. It was branded in India as "the
beauty soap of film stars'.
As of June 2009 Lux is sold in over 100 countries
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Lux launched the world’s first mass-market beauty soap in the US in 1924 &
had been
launched in India in 1929.
•At that time there was only one competitor of Lux, which was from its own
brand “LIFEBUOY”.
•In the initial stages Lux was introduced in the major cities of INDIA like
Calcutta, Mumbai etc.
•MARKETING OBJETIVES - was to create the product awareness and to
attract the
customers towards the product.
•Product = They offer only on product in the market. They did not come up
with the
differentiated product.
•Price =In the initial stages of the product, they offer the relatively higher price
than their competitor (LIFEBUOY). Because, they want to recover their initial
cost of making the product.
• Advertising =In the initial stages, they allocate more advertising budget
So that more and more customers could be attracted towards the product.
In ads they targeted the early adopters, who were readiest to buy the product.
The first ambassador, Leela Chitnis.
• Distribution =was selective and only covers the major cities of INDIA
to get recognition in those cities.
• Their distribution channel was through: Manufacturer Wholesaler &
Retailer
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STRATEGIES :
•Product = In the growth stage, the company had offered the same product in
the market.
•Price = In this stage, the company had changed their price to some extent
because of maximizing the market share. ( Slightly cut down the prices )
•Advertising = In the growth stage, they had increased their advertising budget
as in the initial stages because of attracting the new customers or to retain the
existing customers.
Sharmila Tagore, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit,
Sridevi
• Distribution = In this stage, company had expanded their market to the other
cities of INDIA. Their distribution channel was the same as in the initial stages
of the product.
• Promotion = In the growth stage, the company had also used the different
proportioning strategies to attract the new and the existing customers
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•In this stage, few competitors enter into the market like ( CINTHOL,
FAIRGLOW, SANTOOR, CHANDRIKA, FIAMA DI WILLS and VIVEL ).
•The company has expanded their market to almost all the cities of INDIA.
•Price = The Lux products are now available at higher prices in the market, the
reason behind is that the company’s marketing objectives is to maximize more
profit.
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•Distribution = Now Lux products are available in almost all the cities of
INDIA. Their distribution channel is same as in the initial stage.
• Advertising = In this stage Lux advertising has been reduced to some extent
because of the more brand awareness in the minds of customers.
Recently, they have shown Aishwarya Rai , Kareena kapoor & Shah Rukh
khan.
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•Besides of all campaigns for the sales promotion of Lux .The reasons for its
decline are :
•3.Competition: Lux has been facing competition from HUL itself (Lifebuoy)
& from other companies like:-
•Godrej Consumer Products : GCPL, India’s second largest soap maker with
9.2% market share.
with leading brands such as CINTHOL, FAIRGLOW & NIKHAR.
Fairglow brand, India's first Fairness soap, has created marketing history as one
of the most successful innovations
•Wipro : The presence of Wipro in the toilet soap industry can be seen through
their brands such as SANTO OR and CHANDRIKA. In the southern market of
India it is a major market player in toilet soap.
• ITC :It entered the segment last year and has made a strong headway in a
short time by growing to 1.75% in just five months. With the brands like:
Superia, Fiama Di Wills and Vivel
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➢ PLACE:- supermarkets,
Shops,
Mail orders,etc.
➢ PRODUCT:- quality,
Design,
Image,
Name &
Packaging.
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➢ PROMOTION:- advertising,
Competitions,
Sampling &
In-store display.
PRICE:-
Competitive prices: Neither high nor low
PLACE:-
➢ Distribution network-key strength (which help 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
➢ Factory-Company warehouses-Distributor-Market
➢ Factory- Wholesaler & Big Retailer(Bulk orders)-30%Sales
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PRODUCT:-
➢ Product classification:-
• Tangible
• Non durable
➢ Logo:-
➢ Labelling:-
• Lux trade character or logo is present prominently in the package.
• Female models.
• Displayed graphically- Key ingredients.
➢ Packaging:-
• Differents colours- different
variants(Saffron-Saffron
variants & Pink Rose extracts etc.)
• Packages size-100gm, 120gm, 150gm.
• Launched- Mini Lux- 45gm- Rs.5/-
➢ Promiinent variants:-
• Lux almond Lux orchid Lux pearl glow
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Lux
international Lux chaocolate Lux aromatic extracts
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➢
➢
➢
➢
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➢
Lux FNF Lux Shampoo
➢ PROMOTION:-
✔ Sales Promotion:-
• Lux presented 30gm gold each to the first
three winner of the Lux Gold Star offer
from Delhi. According to the promotional offers that Lux unveiled in
October 2000, a consumer finding a 22-carat gold in his or her soap bar
got an opportunity to win an additional 30gm gold. The first 10 caller of
every week got a 30gm gold each. The offer could be availed only on
100gm and 150gm pack of Lux soap.
• Lux star bano, Aish karo contest. All one neede to do was
to buy a promotional pack of Lux soap. The pack comes
with a special scratch card. The 50 lucky winner and their
spouse were flown down to Mumbai to live a day like
Aishwarya Rai would. They could also be given gift
voucher worth Rs.50,000/- from Shopper Stop’s along
with an exclusively designed by Neeta Lulla and a beauty makeover by
Michelle Tung, Aishwarya’s preferred designer and stylist. The piece de
resisitance was a dinner date with Aishwarya Rai herself.
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Lux, the brand synonymous with beauty and stars, now takes its legacy a notch
higher by introducing the Lux Superstar offer. The
offer gives an opportunity to consumers to meet
Bollywood's Superstar couple Abhishek Bachchan
and Aishwarya Rai Bachchan in London.
✔ Promotion:-
The first ambassador Leela Chitnis featured in a Lux advertisement which
flagged off the Lux wagon. She gave way to a galaxy of stars which include
Madhubala, Nargis, Meena Kumari, Mala Sinha, Rekha, parveen babi,Sharmila
Tagore, Waheeda Rehman, Sairah Banu, Hema Malini, Zeenat Aman, Juhi
Chawla, Madhuri Dixit, Sridevi, Aishwaria Rai Bachchan, Kareena
Kapoor,Priyanka Chopra and most recently Katrina Kaif.
The last frontier for most actors aspiring to stardom is becoming a Lux
ambassador. The brand has outlasted many soaps.
From the beginning, Lux became a household name in the country.
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in creating excitement in the market. Some argue that HLL was testing a new
positioning appeal to male users while others say that
it was a one time endorsement to break the clutter. A
recent ad of Lux featured the golden couple
Aishwarya Ra i Bachchan and Abhishek Bachchan.
They were paid Rs.25
crore for this ad. But in all these advertisements the
celebrity never shadowed thebrand.
From the beginning Lux, by using a leading film star
of the time has fulfilled the consumers aspirations of us ing beauty soaps via
the rationale if its good enough for a film star, its good for me´. This later
moved into a transformation role of having a bath
with Lux, which transports the user into a fantasy
world of icons, film stars and fairy lands.
Events:
Lux celebrated 75 years of existence in a grand
way by unveiling Shah Rukh Khan as their latest brand ambassador.
Kareena Kapoor, Juhi Chawla, Sridevi and Hema Malini graced the event and
made it special. All this stars have endorsed Lux in the past. The event was held
at the Grand Intercontinental in Mumbai.
South Indian:-
JAYALALITHA (1970)
SHRIYA SHARAN
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By:
Amit Kumar Sinha
PGDMRM-002
IPE, Hyderabad
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Contents:
Company Profile – HUL
Distibution Channel - HUL
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ProductMix – HUL
Overview – Lux Soap
Marketing Mix
SWOT Analysis
Competitor Analysis
Market Segmentation
Recommendation
Reference
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• India – 1888
and beverages.
• HLL – HUL
• Headquarter: Mumbai
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Revenue Percentage:
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Shampoo
Tea
Coffee
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Foods
Ice cream
Width = 12
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India – 1929
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Marketing Mix:
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Product:
Product Classification:
Tangible
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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.
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Logo:
Labelling:
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Packaging:
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Price:
Competitive prices: Neither high
nor low
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Place:
HUL distribution network – key
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Network:
Factory – Company warehouses –
Distributor – Market
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Promotion:
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South India:
1970 – Jayalalitha
Shriya Sharan
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Sales Promotion:
Lux gold star offer: 22 Carat Gold
coin in the Soap – First 10 caller
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(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.
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SWOT Analysis
Strengths:
➢ Strong market research (Door to door sampling – once in a year – Rural and
Urban area.)
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➢ 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:-
Threats:-
Internal Competitor:-
➢ Lifebuoy: 1895, 18% market shares
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External competitiors:-
➢ Herbaria
➢ Merci
➢ Clarin
➢ Gender: female
➢ Age:16-35
➢ Income: middle income group (Rs.15-20)
➢ Highest selling beauty soap in urban areas (rural area-lifebuoy)
➢ Expensive-affordable
➢ Target area: urban and sub-urban – upper middle and middle class
people
➢ 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 shares of Lux: 15%
➢ Better positioning: market leader of beauty soap.
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➢ Ayurvedic Variants
➢ Lux Kids Special Soap
➢ Target Rural Area
➢ Target Male Customers
The beauty soap industry of India consists of a few producers in the industry.
The Demand for this product is very much vulnerable in terms of pricing.
Hindustan Unilever is providing LUX at a price which is affordable to most of
the people in the country. Beauty soap is an uprising product in India as a
greater portion of the population, both male and female, are now getting more
beauty conscious. As a multinational company Hindustan Unilever 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.
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➢ www.mbaparadise.com
➢ www.fmcg.com
➢ www.hul.com
➢ http://sxxz.blogspot.com/2005/11/what-is-currency-inflation.html
➢ http://adage.com/garfield/article?article_id=116289
➢ http://www.hll.com/brands/lux.asp
➢ http://themes.blogflux.com/theme/5483.html
➢ http://www.businesswireindia.com/attachments/Kareena%20Lotus.jpg
➢ http://marketingpractice.blogspot.com/2007/01/lux-celebrating-
beauty.html
➢ http://www.slideshare.net/hit20032003/lux-presentation-presentation
➢ http://www.moneycontrol.com/news_html_files/news_attachment/2009/
HUL-RU-Q3FY09-29-01-20091.pdf
➢ www.google.com
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