Product Life Cycle of Lux Soap
Product Life Cycle of Lux Soap
Product Life Cycle of Lux Soap
PRODUCT LIFE
CYCLE
OF
LUX
The
Product
Life
Cycle
A new product progresses through a sequence of stages from introduction to
growth, maturity, and decline. This sequence is known as the product life
cycle and is associated with changes in the marketing situation, thus impacting
the marketing strategy and the marketing mix.
The product revenue and profits can be plotted as a function of the life-cycle
stages as shown in the graph below:
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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:
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
3
INTRODU
CTION TO
LUX
To make cleanliness
commonplace, to lessen work
for women, to foster health
and contribute to personal
attractiveness, that life may
be more enjoyable and
rewarding for the people who
use our products.
-William
Hesketh Lever
Doing well and doing good.
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 a
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The name Lux means light in Latin, however the name was chosen for
its play on the word luxury.
HISTOR
Y
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
INTRODUCTION
STAGE
OF
LUX
Lux launched the worlds 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.
The Lux MARKETING STRATEGIES in the initial stages :
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.
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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
INTRODUCTION
SALES
Low Sales
COSTS
PROFITS
Negative
MARKETING OBJECTIVES
PRODUCT STRATEGY
PRICE STRATEGY
Use A Cost-Plus
DISTRIBUTION STRATEGY
ADVERTISING STRATEGY
GROWTH
STAGE
In the growth stage, their sales rapidly started rising.
They have expanded their market to the other cities of INDIA.
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Maturit
y stage
They modified the product by adding some changes in the product.
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.
MARKETING OBJECTIVES = The marketing objective of Lux is to
maximize more profit while defending the market share. And to expand the
market to all the cities of INDIA.
MARKETING STRATEGIES In this stage are based on:
Product= The Lux has made the modification in the product by introducing:
Lux Almond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Sandalwood, Lux
Rose,
Lux International, Lux Chocolate, Lux Aromatic Extracts, Lux Oil and
Honey.etc
Price = The Lux products are now available at higher prices in the market, the
reason behind is that the companys marketing objectives is to maximize more
profit.
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.
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Recently, they have shown Aishwarya Rai , Kareena kapoor & Shah Rukh
khan.
PROMOTIONAL OFFERS :---- Like buy 3 get 1 free.
MATURITY
SALES
COSTS
PROFITS
MARKETING OBJECTIVES
PRODUCT STRATEGY
PRICE STRATEGY
DISTRIBUTION STRATEGY
ADVERTISING STRATEGY
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Declin
e
stage
Besides of all campaigns for the sales promotion of Lux .The reasons for its
decline are :
1. Currency fluctuations: Unilever products are in over 100 countries
worldwide, As a result, it is exposed to adverse currency fluctuations.
For instance, in 2004, a 5.9% decline in turnover was primarily due to a 4%
appreciation in the average Euro exchange rate.
2.SLOWDOWN: In year 2008 - 09 due to hard economic conditions in
INDIA and other countries the sales were highly affected as the consumer
started looking for some alternate products with a cheaper price than Lux.
3.Competition: Lux has been facing competition from HUL itself (Lifebuoy)
& from other companies like:Godrej Consumer Products : GCPL, Indias 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.
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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
SALES
Declining Sales
COSTS
PROFITS
Declining profits
MARKETING OBJECTIVES
PRODUCT STRATEGY
PRICE STRATEGY
Cut price
DISTRIBUTION STRATEGY
MARKETING
MIX
PRICE:- price level,
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Discount,
Special offers.
PLACE:- supermarkets,
Shops,
Mail orders,etc.
PRODUCT:- quality,
Design,
Image,
Name &
Packaging.
PROMOTION:- advertising,
Competitions,
Sampling &
In-store display.
Rs.17
Rs.15
Rs.10
Rs.5
PLACE:15
Labelling: Lux
present prominently in the package.
Female models.
Displayed graphically- Key ingredients.
Lux orchid
DIFFERENT
PRODUCTS
OF
LUX:-
Lux international
Lux chaocolate
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Lux SPA
Lux FNF
Lux Shampoo
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 Stops
along with an exclusively designed by Neeta Lulla and a
beauty makeover by Michelle Tung, Aishwaryas preferred
designer and stylist. The piece de resisitance was a dinner
date with Aishwarya Rai herself.
Lux celebrated 75 year of stardom with the Har Star Lucky Star Activity.
All wrappers of Lux had a star printed inside them. If the consumer
found written inside the star, any number from 1 to 5, he or she would
get an equivalent discount (in rupees) on his
or her purchase from his or her shopkeeper.
If the consumer found the 75 years written
inside the star, he or she will get a years
supply of Lux free.
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.
Now anyone can get a taste of stardom and rub shoulders with the power
couple, all you need is to purchase Lux soap and complete a slogan to stake a
claim to an evening full of glamour, glitz and glory. 12 lucky couples will be
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flown to meet Abhi & Ash in London. Well, this is not all... there are exclusive
signed photographs of the couple to be won.
12 lucky couples could win a chance to go
to London and spend an evening with
Abhishek and Aishwarya Rai Bachchan.
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.
Actress Asin Thottumkal has joined the likes of Aishwarya Rai, Priyanka
Chopra and Katrina Kaif as the new brand
ambassador of Lux soap.
She has been signed as the face of the soap's new
variant Lux Sandal & Cream.
"It's a beauty accolade to be associated with the
legendary beauty brand Lux, which has celebrated
beauty and glamour over the decades. It gives me
immense pride to endorse the new natural variant Lux Sandal & Cream, as I
truly believe in being beautiful the natural way," said Asin.
"The credit of rooting the right beauty mantra goes to my mom, who being a
doctor, has always entrusted the beauty of my skin to sandalwood, due to its
magical cleansing, toning and moisturising attributes," she added.
IDEA:- If it is good for star, it is good for me.
In 2005 Lux celebrated its 75th anniversary sparking of a controversy.
Deviating its tradition of roping Bollywood Divas, this time none other than
Shah Rukh Khan endorsed Lux. The ads created instant controversy with
marketers discussing whether the brand has suddenly become MALE. Paul
Newman also has endorsed Lux soap which shows that Lux makes such stunts
to excite the market. Whatever be the controversy, the brand a gain succeeded
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.
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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
bathing and bathroom to the world outside. Its the world where Lux on her
side, an
ordinary woman can impact her world with her own star quality. This is a
successful attempt to bring the brand closer to its users and give it a more useful
and contemporary image. Breaking away from tradition, HLL resorts to a male
and metro sexual Shah Rukh Khan to revive Lux which turned 75 in 2005.
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SWOT
ANALYSI
S:-
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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)
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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
COMPETITO
RS
ANALYSIS:Internal Competitor: Lifebuoy: 1895, 18% market shares
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MARKET
SEGMENTA
TION:
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
PRODUCT
POSITIONING
OF LUX:62
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.
RECOMMEN
DATION:
Ayurvedic Variants
Lux Kids Special Soap
Target Rural Area
Target Male Customers
CONCLUS
ION: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
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REFERE
NCE: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-celebratingbeauty.html
http://www.slideshare.net/hit20032003/lux-presentation-presentation
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http://www.moneycontrol.com/news_html_files/news_attachment/2009/
HUL-RU-Q3FY09-29-01-20091.pdf
www.google.com
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