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Product Life Cycle of Lux Soap

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Production & material management

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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Life cycle of Lux soap

Product Life Cycle Diagram

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:

Product branding and quality level is


established, and intellectual property protection such as patents and
trademarks are obtained.
Pricing may be low penetration pricing to build market share rapidly, or
high skim pricing to recover development costs.
Distribution is selective until consumers show acceptance of the
product.

Production & material management


Life cycle of Lux soap

Promotion is aimed at innovators and early adopters. Marketing


communications seeks to build product awareness and to educate
potential consumers about the product.

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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As sales decline, the firm has several options:


Maintain the product, possibly rejuvenating it by adding new features
and finding new uses.
Harvest the product - reduce costs and continue to offer it, possibly to a
loyal niche segment.
Discontinue the product, liquidating remaining inventory or selling it to
another firm that is willing to continue the product.
The marketing mix decisions in the decline phase will depend on the selected
strategy. For example, the product may be changed if it is being rejuvenated, or
left unchanged if it is being harvested or liquidated. The price may be
maintained if the product is harvested, or reduced drastically if liquidated.

Production & material management


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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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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 toilet soap was introduced as a 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 handwash, shower gel and cream bath soap.
Lux soap was launched inIndia 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 .
From the 1930s right through to the 1970s, Lux soap colours and
packaging were altered several times to reflect fashion trends. In 1958
five colours made up the range: pink, white, blue, green and yellow.
People enjoyed matching their soap with their bathroom colours.
In the early 1990s, Lux responded to the growing trend away from
traditional soap bars by launching its own range of shower gels, liquid
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 worlds 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.
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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

Production & material management


Life cycle of Lux soap

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

High Cost Per Customer

PROFITS

Negative

MARKETING OBJECTIVES

Create Product Awareness In Major Cities In India

PRODUCT STRATEGY

Offer A Basic Product

PRICE STRATEGY

Use A Cost-Plus

DISTRIBUTION STRATEGY

Build Selective Distribution

ADVERTISING STRATEGY

Build product awareness among early adopters & dealers

GROWTH
STAGE
In the growth stage, their sales rapidly started rising.
They have expanded their market to the other cities of INDIA.

Production & material management


Life cycle of Lux soap

MARKETING OBJECTIVES = The marketing objectives of the Lux were


to expand their market to the other cities of INDIA.
Another objective was to maximize more market share.
In the growth stage, company had the following MARKETING
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
SALES
COSTS
PROFITS
MARKETING OBJECTIVES
PRODUCT STRATEGY
PRICE STRATEGY
DISTRIBUTION STRATEGY
ADVERTISING STRATEGY

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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

Build more intensive Distribution

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Stress brand differences and

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

Low Cost Per Customer

PROFITS

Declining profits

MARKETING OBJECTIVES

Reduce expenditure & milk the brand

PRODUCT STRATEGY

Phase out weak items

PRICE STRATEGY

Cut price

DISTRIBUTION STRATEGY

Go selective: phase out unprofitable outlets

Reduce to level needed to retain hard-core loyal customers.


ADVERTISING 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.

PRICE:Competitive prices: Neither high nor low


Price segment of toilet soaps
Segments
Prices/weight
Premium
>Rs.15/75gms
Popular
Rs.8-15/75gms
Economy
<Rs.8/75gms

Recent pricing of lux(100g)


Lux Crystal Shine
Lux Festive Glow
Normal Lux
Mini Lux

Rs.17
Rs.15
Rs.10
Rs.5

PLACE:15

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Life cycle of Lux soap

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

PRODUCT: Product classification: Tangible


Non durable
Logo:-

Labelling: Lux
present prominently in the package.
Female models.
Displayed graphically- Key ingredients.

trade character or logo is

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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DIFFERENT
PRODUCTS

Lux renewal massage


Lux crystal shine
Lux rose

OF
LUX:-

Lux international

Creamy delight Lux

Lux chaocolate

Lux aromatic extracts

Purple lotus Lux

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Lux SPA

Lux Shower gel range

Lux body wash

Lux hand wash

Lux FNF

Lux Shampoo

PROMOTION: Sales Promotion:18

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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.

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.
Lux advertisements through ages Lux campaigns have wooed millions of
people over the decades. Popularly known as the beauty soap of film stars, Lux
has been an intimate partner of the brightest stars on the silver screen for
decades. An ode to their beauty, an announcer of the ir stardom, advertising
campaigns on Lux have featured film stars across the nation, promising their
beauty and complexion to common women .With top movie stars - from
Madhubala to Madhuri, from Babita to Karishma and Kareena having endorsed
the goodness of Lux over generations, it was natural that the brand has built
equity as the best beauty soap in India.
NEW LUX:20

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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

Change in communication strategy


Lux was always changing with the times. Whether
in terms of product or in terms of promotions, the
brand kept the consumers excited. Lux was initially
a premium brand. It was being projected as an aspirational brand and the
endorsements by stars further reinforced the positioning. However the
communication was slowly seemed to be losing relevance, as consumers were
beginning to question if the film star actually used the brand. The increasing
competition in the soap category also forced Lux to rethink on its targeting
strategy. Several competitive beauty soap brands had begun advertising using
similar methods of communication. The brand had a choice either to
compromise on market share or dilute the positioning. In this context, the
global brand team for Lux developed a new communication strategy. This
strategy -bring out the star in you -for the first time moves the brand away
from the long running film star route. The film stars still features in the new
communication but not as her gorgeous self but rather as an alter
ego/projection of the protagonist, for a few seconds of the entire ad. Thus, for
the first time the film star was used as a communication device and not as the
main feature of the ad. The move away from the film star and her fantasy
world to the regular Lux user with the focus on the protagonists star quality is a
change from the norms set by the Lux advertising in the past. With the new
communication strategy, the film
star is used purely as a communication device to po rtray star quality in every
Lux user. This can be significantly seen in the latest TV commercial of Lux
Crystal Shine where Priyanka Chopra is portrayed as a normal woman. This
idea-bring out the star in you -puts the consumer at the heart of brands
promise. The promise goes beyond the functional deliverables of soap, beyond
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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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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
variant in this segments.
Large market share- Strong hold over the market

Threats: High internal competitions (Pears-beauty segments)


New entrants (Vivel)
Maturity stage-threats of slipping down to decline stage- if constant
reinvention is not carried out.

COMPETITO
RS
ANALYSIS:Internal Competitor: Lifebuoy: 1895, 18% market shares
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External competitiors: Herbaria


Merci
Clarin

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

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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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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.

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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