Description
This is a presntation is marketing of lux in india.
COMPANY PROFILE: HUL
• Hindustan Unilever Limited (HUL), a 52%-owned subsidiary of Anglo-Dutch giant Unilever, has been working its way into India since 1888. • Spans many categories - soaps, detergents, personal care, tea, coffee, branded staples, ice cream and culinary products. • HUL's brands - like Lifebuoy, LUX, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk,, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are household names. • HUL Soaps: LUX, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Moti and Rexona. • LUX earns the maximum revenue after Lifebuoy amongst soaps.
SOAP INDUSTRY ANALYSIS
• • • • • Soaps form the second largest pie of the FMCG Market after detergents in non food segments. Bathing & Toilet soaps accounting for around 30% of the soap market, by value. Rs 8000-crore branded soaps sector in India. Currently, the soap industry is divided into three segments namely Premium, Popular and Economy/ Sub popular. Major Players include: Company Hindustan Uni Lever Godrej Consumer Product Ltd. ITC Wipro Henkel-SPIC Procter and Gamble Reckitt Benckiser Others Brands LUX, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Rexona, Moti. Cinthol, Godrej No .1, Fair Glow, Nikhar Fiama Di Wills,Vivel Di Wills Santoor, Chandrika FA, Margo Olay, Camay Dettol Dyna, Nima Rose, Nivea Soap
BRAND LUX
• • • • • • The name 'LUX' was derived from the word "Luxury." LUX toilet soap was introduced in 1925 in the U.S. One of India's most trusted personal care brands. Since its launch in India in the year 1929, LUX has offered a range of soaps in different colours and world class fragrances. It went coloured in 1958. 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 moisturizing bars.
MARKET SHARE CAPTURED GLOBALLY BY LUX 2007 STATISTICS
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Asia
Latin america
Africa
North america
East & Central Europe
Western Europe
Middle East
Australia & Pacific
MARKET SHARE OF LUX BY VALUE IN INDIA
18.50% 18.00% 17.50% 17.00% 16.50% 16.00% 15.50% 15.00% 14.50% 14.00%
2004
2005
2006
2007
2008
2009*
*Till June 2009
MARKET SHARE OF DIFFERENT BRANDS JUNE 2009 STATISTICS
18.00% 16.00% 14.00% 12.00%
10.00%
8.00%
6.00%
4.00% 2.00% 0.00% Dettol Lux Lifebouy Godrej Nirma *Wipro Vivel
*SANTOOR and CHANDRIKA Combined
SEGMENTATION TARGETING POSITIONING
GEOGRAPHIC Urban
LUX International, Exotic Fragrances and Variants
Sub-urban
New variants, Affordable prices, Multipackaging, Promotional schemes
Rural
Mini Packs, Low Prices.
DEMOGRAPHIC
Gender Male Female
Feminine Fragrances and Colors. And Endorsements.
Income Low Middle High
New Variants, Affordable Prices, Multipackaging, Promotional Schemes
POSITIONING
• Positioned as a beauty soap in India. • Endorsement by various filmstars. • Changed its positioning from “Beauty soap of Film stars” to “Bring out the star in you.” • Keeping to the growing demands of customers, LUX introduced soaps in different colours, packaging and fragrances. • LUX International introduced for the premium segment and the affordable segment was catered by LUX beauty soap. • LUX international has moved from being a soap brand to a skin care brand and has the tagline “Not just soap, its skin care.”
PRODUCT MIX
PRODUCT LUX lies in staple goods category of convenience goods. 1.Variety
Soap Body Wash
2. Packaging
• Almond, Orchid, Saffron, International, Chocolate, Aromatic, Fruit, Gold, Oil & Honey, Rose, Sandalwood, fruit Strawberry & Cream and Peaches & Cream, LUX gold etc • • • • Soft Luxury Uplifting Firm, White Glamour Silk Nourishment
•Package Size- 75g, 100g, 125g, 150g •Launched mini LUX of 45g at Rs 5 •Novel Metallic substrate packaging •Showcase Female model on the pack. •Also Display key ingredients graphically
PRICE
Introduced at 2 annas in 1929
Skimming Pricing Strategy to recover their intital Cost
Penetration Price Strategy to gain market share
Now Available at higher prices to increase profit Packaging
45 g 75 g 125 g(Pack of four) LUX International
Current price(Rs)
6 10 73 28
PLACE
• Follows Intensive and Indirect distribution • Wide display in stores • Different Eye Catching Decorations inside the store and in the showcase for outside display
PROMOTION
• • • • • • • • • • Follows Pull promotional strategy Offers Like Buy 3 get 1 free, Lux beauty ticket, Har star lucky Star, Lucky Date with Ash Catchy Taglines like play with Beauty, Surat bhi hai Khubsurat bhi hai, Choclate Seduction Sponsorships-- Lux Zee Cine Awards, Lux Perfect Bride, Lux channel I superstar. Ads by Bollywood stars. Creative Partner-MTV Ads on Tv , Newspaper and Billboards. Online Contests Promotional Campaigns in Schools, Colleges. Organizes zonal beauty contests.
COMPETITOR ANALYSIS ( BASED ON PORTER’S MODEL)
INTERNAL COMPETITORS : LUX against Dove, Pears and Breeze. • Brand Equity: DOVE>PEARS> LUX>BREEZE. • DOVE and PEARS are niche market Brands.LUX is for masses, LUX international competitive with them in urban and uppermiddle class segment. BREEZE a competition to basic pink LUX in rural areas. People willing to pay a further premium of Rs 10 on DOVE before swithching to LUX brand and a premium of Rs. 4.65 before switching from pears brand to LUX. People are willing to pay high prices for PEARS and DOVE not because of brand loyalty but because they are not willing to use LUX until and unless the prices of other two became very high. Thus shift from them to LUX is highly price sensitive .
• •
•
COMPETITION ANALYSIS
EXTERNAL COMPETITORS • GCPL Godrej no 1: Largest selling grade 1 soap in North India. National level market share:8% by value, 4% by volume Overtaken LUX in the north indian market Fairglow: Positioned as fairness soap, unsuccessful in competing with LUX. • Wipro Santoor: the largest brand in south india 15.6% market share in south india (LUX 12.4%) no 1 in Andhra Pradesh. • Henkel SPIC Fa : launched in 2004 A wide range of exotic fragrances which led LUX to think about variants. 75 n 125 gm... Rs15 /75 gm • P&G Gradually withdrawing Camay from the market.
POTENTIAL NEW ENTRANTS
• ITC: Fiama di wills , vivel di wills( SEPTEMBER 2007) • Presence in 6 states • 1.75% growth in first 6 months • Premium, exotic fragrances,ITC image. • Anchor beauty and cosmetics Pvt. Ltd Dyna soap: • High frequency of tv commercials, endorsement by famous celebrity • Positioned as a higher fatty acid containing grade 1 soap. • Launched in direct competition with LUX and godrej no.1 • Oriflamme Milk n honey( Rs40/100g) • Kopran Shine n Smile
SUBSTITUTES
• Body wash Palmolive, Fiama di wills, Dove • Face wash Garnier , Himalaya, Clean and clear. • Soaps of other category than Beauty Soaps like Antiseptic(Dettol), Herbal, Ayurvedic. • Imported/Local Brands.
BUYER POWER
• Low involvement industry Consumers open to trying new brands. • Low switching cost • Increase in purchase power and economic status upward integration(shift to premium brands) • Price sensitivity backward integration. • Range of choices Confusion. • Media influence
• •
Word of mouth, recommendation from friends, shopkeeper. Price elasticity(likely to buy a same category soap priced at Rs 5 than the one at Rs 6)
SUPPLIER POWER
• Availability of raw materials Price hike due to increase in palm oil prices Palm acid distillate price hike from 249 to 390/ tonne soap 50 Paise hike on every 100 g
• Earlier animal fat was used as a raw material which was cheaper. After the ban by Indian government
on its usage, Vegetable oil used.
POTENTIAL OF LUX IN INDIAN MARKET
•
• • • • •
Lux was amongst the first entrants into the Indian personal care industry….. under the unilever brand and no competitor in the market…. Soap market growing at 12.4% a year. Rural penetration of Lux: 19.8% Government initiatives such as rural job guarantee scheme and farm loan waiver . Increasing demand in the rural segment due to increase in the purchasing power . Thus it needs to tap the rural market.
Current Product Current Market New Product
Penetration Strategy
Attract users : • Gold coin offer • New Brand Ambassadors
Product Development Strategy
•Product Reformulation like Honey, chocolate, strawberry, peaches and cream, Gold. •Product line extension : addition of small size (Rs 5/-,45 g)
New Market
Market Development Strategy
•Introduction of Lux Nalagundi in Andhra Pradesh
Diversification Strategy
•Introduction Of Body Wash
RECOMMENDATIONS
Lux has reached the maturity stage in its PLC and there is a danger of moving towards the decline stage, hence the following steps should be taken:
• Tap the rural market by o Further segmentation and target higher income groups like zamindars. o Promotion through radio(A.M, F.M), TV programs like Krishidarshan and Aapka Swasthya. • • • • • • Cost-effective distribution and increase in margin of Kirana shop-owners. Lux Black Provocateur was launched in the premium segment, but failed to capture the market. Thus Lux should focus on this segment keeping in mind the consumer preferences. Test launch in the men’s segment. Lux has a TFM of 60-70% which should be further increased. Should introduce Lux facewash and variants according to regional preferences like Coconut oil soap in South and Lotus in East. Test Lauch of Lux Shampoo and Hand Wash.
REFERENCES
?http://economictimes.indiatimes.com/News/News-By-Industry/ConsProducts/FMCG/HUL-plans-makeover-for-LUX-Wheel-to-boost-marketshare/articleshow/4813971.cms ?www.hul.co.in ?http://www.managementparadise.com/forums/marketing-management/139305-luxcomprehensive-study.html ?www.wikipedia.org ?http://www.televisionpoint.com/news2009/newsfullstory.php?id=1250512673 ?http://www.livemint.com/2009/05/06234303/HUL-losing-market-share-as-riv.html
doc_890594550.ppt
This is a presntation is marketing of lux in india.
COMPANY PROFILE: HUL
• Hindustan Unilever Limited (HUL), a 52%-owned subsidiary of Anglo-Dutch giant Unilever, has been working its way into India since 1888. • Spans many categories - soaps, detergents, personal care, tea, coffee, branded staples, ice cream and culinary products. • HUL's brands - like Lifebuoy, LUX, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk,, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are household names. • HUL Soaps: LUX, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Moti and Rexona. • LUX earns the maximum revenue after Lifebuoy amongst soaps.
SOAP INDUSTRY ANALYSIS
• • • • • Soaps form the second largest pie of the FMCG Market after detergents in non food segments. Bathing & Toilet soaps accounting for around 30% of the soap market, by value. Rs 8000-crore branded soaps sector in India. Currently, the soap industry is divided into three segments namely Premium, Popular and Economy/ Sub popular. Major Players include: Company Hindustan Uni Lever Godrej Consumer Product Ltd. ITC Wipro Henkel-SPIC Procter and Gamble Reckitt Benckiser Others Brands LUX, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Rexona, Moti. Cinthol, Godrej No .1, Fair Glow, Nikhar Fiama Di Wills,Vivel Di Wills Santoor, Chandrika FA, Margo Olay, Camay Dettol Dyna, Nima Rose, Nivea Soap
BRAND LUX
• • • • • • The name 'LUX' was derived from the word "Luxury." LUX toilet soap was introduced in 1925 in the U.S. One of India's most trusted personal care brands. Since its launch in India in the year 1929, LUX has offered a range of soaps in different colours and world class fragrances. It went coloured in 1958. 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 moisturizing bars.
MARKET SHARE CAPTURED GLOBALLY BY LUX 2007 STATISTICS
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Asia
Latin america
Africa
North america
East & Central Europe
Western Europe
Middle East
Australia & Pacific
MARKET SHARE OF LUX BY VALUE IN INDIA
18.50% 18.00% 17.50% 17.00% 16.50% 16.00% 15.50% 15.00% 14.50% 14.00%
2004
2005
2006
2007
2008
2009*
*Till June 2009
MARKET SHARE OF DIFFERENT BRANDS JUNE 2009 STATISTICS
18.00% 16.00% 14.00% 12.00%
10.00%
8.00%
6.00%
4.00% 2.00% 0.00% Dettol Lux Lifebouy Godrej Nirma *Wipro Vivel
*SANTOOR and CHANDRIKA Combined
SEGMENTATION TARGETING POSITIONING
GEOGRAPHIC Urban
LUX International, Exotic Fragrances and Variants
Sub-urban
New variants, Affordable prices, Multipackaging, Promotional schemes
Rural
Mini Packs, Low Prices.
DEMOGRAPHIC
Gender Male Female
Feminine Fragrances and Colors. And Endorsements.
Income Low Middle High
New Variants, Affordable Prices, Multipackaging, Promotional Schemes
POSITIONING
• Positioned as a beauty soap in India. • Endorsement by various filmstars. • Changed its positioning from “Beauty soap of Film stars” to “Bring out the star in you.” • Keeping to the growing demands of customers, LUX introduced soaps in different colours, packaging and fragrances. • LUX International introduced for the premium segment and the affordable segment was catered by LUX beauty soap. • LUX international has moved from being a soap brand to a skin care brand and has the tagline “Not just soap, its skin care.”
PRODUCT MIX
PRODUCT LUX lies in staple goods category of convenience goods. 1.Variety
Soap Body Wash
2. Packaging
• Almond, Orchid, Saffron, International, Chocolate, Aromatic, Fruit, Gold, Oil & Honey, Rose, Sandalwood, fruit Strawberry & Cream and Peaches & Cream, LUX gold etc • • • • Soft Luxury Uplifting Firm, White Glamour Silk Nourishment
•Package Size- 75g, 100g, 125g, 150g •Launched mini LUX of 45g at Rs 5 •Novel Metallic substrate packaging •Showcase Female model on the pack. •Also Display key ingredients graphically
PRICE
Introduced at 2 annas in 1929
Skimming Pricing Strategy to recover their intital Cost
Penetration Price Strategy to gain market share
Now Available at higher prices to increase profit Packaging
45 g 75 g 125 g(Pack of four) LUX International
Current price(Rs)
6 10 73 28
PLACE
• Follows Intensive and Indirect distribution • Wide display in stores • Different Eye Catching Decorations inside the store and in the showcase for outside display
PROMOTION
• • • • • • • • • • Follows Pull promotional strategy Offers Like Buy 3 get 1 free, Lux beauty ticket, Har star lucky Star, Lucky Date with Ash Catchy Taglines like play with Beauty, Surat bhi hai Khubsurat bhi hai, Choclate Seduction Sponsorships-- Lux Zee Cine Awards, Lux Perfect Bride, Lux channel I superstar. Ads by Bollywood stars. Creative Partner-MTV Ads on Tv , Newspaper and Billboards. Online Contests Promotional Campaigns in Schools, Colleges. Organizes zonal beauty contests.
COMPETITOR ANALYSIS ( BASED ON PORTER’S MODEL)
INTERNAL COMPETITORS : LUX against Dove, Pears and Breeze. • Brand Equity: DOVE>PEARS> LUX>BREEZE. • DOVE and PEARS are niche market Brands.LUX is for masses, LUX international competitive with them in urban and uppermiddle class segment. BREEZE a competition to basic pink LUX in rural areas. People willing to pay a further premium of Rs 10 on DOVE before swithching to LUX brand and a premium of Rs. 4.65 before switching from pears brand to LUX. People are willing to pay high prices for PEARS and DOVE not because of brand loyalty but because they are not willing to use LUX until and unless the prices of other two became very high. Thus shift from them to LUX is highly price sensitive .
• •
•
COMPETITION ANALYSIS
EXTERNAL COMPETITORS • GCPL Godrej no 1: Largest selling grade 1 soap in North India. National level market share:8% by value, 4% by volume Overtaken LUX in the north indian market Fairglow: Positioned as fairness soap, unsuccessful in competing with LUX. • Wipro Santoor: the largest brand in south india 15.6% market share in south india (LUX 12.4%) no 1 in Andhra Pradesh. • Henkel SPIC Fa : launched in 2004 A wide range of exotic fragrances which led LUX to think about variants. 75 n 125 gm... Rs15 /75 gm • P&G Gradually withdrawing Camay from the market.
POTENTIAL NEW ENTRANTS
• ITC: Fiama di wills , vivel di wills( SEPTEMBER 2007) • Presence in 6 states • 1.75% growth in first 6 months • Premium, exotic fragrances,ITC image. • Anchor beauty and cosmetics Pvt. Ltd Dyna soap: • High frequency of tv commercials, endorsement by famous celebrity • Positioned as a higher fatty acid containing grade 1 soap. • Launched in direct competition with LUX and godrej no.1 • Oriflamme Milk n honey( Rs40/100g) • Kopran Shine n Smile
SUBSTITUTES
• Body wash Palmolive, Fiama di wills, Dove • Face wash Garnier , Himalaya, Clean and clear. • Soaps of other category than Beauty Soaps like Antiseptic(Dettol), Herbal, Ayurvedic. • Imported/Local Brands.
BUYER POWER
• Low involvement industry Consumers open to trying new brands. • Low switching cost • Increase in purchase power and economic status upward integration(shift to premium brands) • Price sensitivity backward integration. • Range of choices Confusion. • Media influence
• •
Word of mouth, recommendation from friends, shopkeeper. Price elasticity(likely to buy a same category soap priced at Rs 5 than the one at Rs 6)
SUPPLIER POWER
• Availability of raw materials Price hike due to increase in palm oil prices Palm acid distillate price hike from 249 to 390/ tonne soap 50 Paise hike on every 100 g
• Earlier animal fat was used as a raw material which was cheaper. After the ban by Indian government
on its usage, Vegetable oil used.
POTENTIAL OF LUX IN INDIAN MARKET
•
• • • • •
Lux was amongst the first entrants into the Indian personal care industry….. under the unilever brand and no competitor in the market…. Soap market growing at 12.4% a year. Rural penetration of Lux: 19.8% Government initiatives such as rural job guarantee scheme and farm loan waiver . Increasing demand in the rural segment due to increase in the purchasing power . Thus it needs to tap the rural market.
Current Product Current Market New Product
Penetration Strategy
Attract users : • Gold coin offer • New Brand Ambassadors
Product Development Strategy
•Product Reformulation like Honey, chocolate, strawberry, peaches and cream, Gold. •Product line extension : addition of small size (Rs 5/-,45 g)
New Market
Market Development Strategy
•Introduction of Lux Nalagundi in Andhra Pradesh
Diversification Strategy
•Introduction Of Body Wash
RECOMMENDATIONS
Lux has reached the maturity stage in its PLC and there is a danger of moving towards the decline stage, hence the following steps should be taken:
• Tap the rural market by o Further segmentation and target higher income groups like zamindars. o Promotion through radio(A.M, F.M), TV programs like Krishidarshan and Aapka Swasthya. • • • • • • Cost-effective distribution and increase in margin of Kirana shop-owners. Lux Black Provocateur was launched in the premium segment, but failed to capture the market. Thus Lux should focus on this segment keeping in mind the consumer preferences. Test launch in the men’s segment. Lux has a TFM of 60-70% which should be further increased. Should introduce Lux facewash and variants according to regional preferences like Coconut oil soap in South and Lotus in East. Test Lauch of Lux Shampoo and Hand Wash.
REFERENCES
?http://economictimes.indiatimes.com/News/News-By-Industry/ConsProducts/FMCG/HUL-plans-makeover-for-LUX-Wheel-to-boost-marketshare/articleshow/4813971.cms ?www.hul.co.in ?http://www.managementparadise.com/forums/marketing-management/139305-luxcomprehensive-study.html ?www.wikipedia.org ?http://www.televisionpoint.com/news2009/newsfullstory.php?id=1250512673 ?http://www.livemint.com/2009/05/06234303/HUL-losing-market-share-as-riv.html
doc_890594550.ppt