LUX *

INDUSTRY ANALYSISToilet soaps market estimated at 530,000 tpa including small imports.Toilet soap, once only an urban phenomenon, has now penetrated practically all areas including remote rural areas.Market divided into following price segments: PremiumPopularEconomy soaps. Premium soaps are estimated to have a market volume of about 80,000 tonnes. This translates into a share of about 14 to 15%.Soaps form the largest pie of the FMCG Market with 30% of the market share.**

HUL COMPANY PROFILEExport its products to India in the late 19th & early 20th centuryBegan with export of Lifebuoy in 1895In 1931 set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935)The 3 companies merged in 1956 & HLL came into existenceThe liberalization of Indian economy in 1991 allowed HLL to explore every single product

India's largest FMCG companyIncludes brands which are household names across the countryThe products are manufactured over 40 factories across IndiaA network of over:2000 suppliers and associates4000 redistribution stockistscovers 6.3 million retail outletsHUL COMPANY PROFILE

HUL NetworkStarted in 2003, Hindustan Unilever Network (HUN) is HUL's Direct Selling arm.HUN is a multi-category direct selling business offering a wide range of high-quality, high-performance products to its consumers.It has about 7 lakh consultants all trained and guided by HUN's expert managers.HUN has spread to 1500 towns & cities, backed by 28 offices and over 130 service centres across the country.HUN's vision is to earn the love & respect of India by making a real difference to lives of million Indians.

PRODUCT PROFILEThe name 'Lux' is a play on the word "Luxury" It has been marketed in several forms that includes bar, flake & liquid formLux stands for the promise of beauty & glamour, as one of India's most trusted personal care brandsLux offers an exciting range of soaps & Body Washes with unique elements which aim to make bathing time more pleasurableOver decades, Lux soap colours & packaging has been altered several times to reflect fashion trends

AWARENESS (PROMOTION)Mostly Aggressive Promotional strategyPopular ways of Promotion TV AdsBill boards/ HoardingsPaper/Magazines PrintsEvents/ ExhibitionsDemos/ Offers

MARKETING OBJECTIVEThe marketing objectives of LUX brand are:Gain share in smaller towns where Lux has a good franchisee.Reach out to the lower end SEC and gain market share.Penetrate deep into rural markets.

MAJOR PLAYERSHindustan Unilever Limited 54.3% Market ShareGodrej Soaps Limited9.2% market shareWipro Consumer Care LtdNirma Soaps LimitedITCKarnataka Soaps And Detergents Limited**

COMPETITOR ANALYSISNirma Bath SoapNirma Beauty SoapNirma Lime Fresh Soap Nima Rose Nima Sandal

GODREJ Godrej No.1 Fairglow Cinthol Lime Fresh

WIPRO Santoor soap Santoor Chandan Milk & Roses soap Chandrika

SEGMENTATION, TARGETING & POSITIONINGSegmentationHUL segments its market according to geographical areasThe population of the country is segmented into three parts which are urban, sub urban and rural area consumersTargetingHUL targets urban and sub urban, upper middle and middle class peoplePositioningIt is positioned as a beauty soap

MARKETING MIXProductThe brand name Lux has been derived from Luxury.Marketed in several forms : handwash, shower gel and bath soap.40gm, 80gm and 120gm.

PriceCompetitive pricing : neither high nor lowPrice segment for toilet soaps

MARKETING MIX

SegmentPrice / WeightPremium> Rs.15 / 75gmPopularRs. 8-15/ 75gmsEconomy< Rs.8 / 75gm

PlaceHUL distribution network key strength which helps reach out its product across length & width of countryMore than 2000 suppliers & associatesMore than 7000 stockiest.Direct coverage in over 1 million retail outlets.

MARKETING MIX

PromotionLux is the secret of their beauty.Idea : if it is good enough for a film star, it is good enough for you.Beauty soap for film stars.MARKETING MIX

Key ingredient in marketing campaigns, consists of a collection of incentive tools.Designed to stimulate quicker or greater purchase of a particular product or service.Advertising offers a reason to buy.Sales promotion offers an incentive to buy.SALES PROMOTION

SALES PROMOTIONLux gold start offer: 22 carat gold coin in soap; first 10 callers every week got a 30 gm gold each.Lux star bano, aish karo contest: A special promotional pack of lux soap - scratch card 50 lucky winners got a chance to meet Aishwarya Rai.Lux celebrated 75 years: If consumer found any number from 1 - 5, she would get an equivalent discount (in Rs) on her purchase from shopkeeper. If the consumer found 75 years written inside star, she will get a years supply of Lux free.

PUBLIC RELATIONSA public is any group that has an actual or potential interest in or impact on a companys ability to achieve its objectives.

PR involves a variety of programs designed to promote or protect a companys image or its individual products.

LUX PR ACTIVITIES Press Relations: Lux has been maintaining constant communicating with its customers and potential customers, of the various developments taking place in the brand by using press relations.

Events: Lux celebrated 75 years of existence in a grand way by unveiling Shahrukh Khan as their latest brand ambassador. Kareena Kapoor, Juhi Chawla, Sridevi and Hema Malini graced the event and made it special. All the stars have endorsed Lux in the past. The event was held at the grand Intercontinental in Mumbai.

Point of Purchase: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. LUX PR ACTIVITIES

ADVERTISEMENTSAdvertisements have played an important role for LUX to become a major brand.Cost effective way to disseminate messages.Used to build brand preference & brand awareness.Presence of movie stars.Attribute positioning.

CELEBRITY ENDORSEMENTSHollywood Actresses- Dorothy Lamour,Joan Crawford, Laurette, Sarah Jessica Parker, Catherine Zeta-Jones1st Male actor- Paul Newman BollywoodActresses- Madhubala, Mala Sinha, Hema Malini, Sridevi, Madhuri Dixit, Juhi Chawla, Karisma Kapoor, Rani Mukerji, Aishwarya Rai and Priyanka Chopra.1st Male actor- Shahrukh Khan

ADVERTISING APPEALSAppeal is slogan or need-creating stanza used in advertisement. Attractive personality, commercials keyword/ caption & some information adding to knowledge come under Appeal of advertisement of a specific brand. They motivate consumer to center his/her attention to the specific brand of product

APPEALS USED BY LUXRational Appeal: The advertisement showing the product which is affordable by common man - Dus mein LuxSex Appeal: Used in the advertisement - Sone se bhi sona lage (featuring Aishwarya Rai) & Kali se bhi komal (featuring Katrina Kaif)Humour Appeal: Animated advertisements by Lux.

ADVERTISING AGENCIESThe advertising agencies related to Lux are:JWT- NewYorkJWT- AutraliaJWT- IndiaJWT- SingaporeJWT- London

LUX ADVERTISEMENTS THROUGH THE AGES

Leela Chitnis in the first Lux print advertisement featuring an Indian actress in1929

Mc Caffes Magazine ad for September 1930

Canadian news journal ad in 1931

Print ad launched in mid 1930s

LUX ad featuring famous actress Prema Narayan during 1970s

Revealing Lux as his beauty secret, the actor applies the soap over his body.

DISTRIBUTION Indirect channel of distribution.Hierarchy in distribution channel:Regional manager.Area sales manager.Territory sales officer.Distributor. Sub distributor.

REAL BEAUTY CAMPAIGNCollaboration with saas bahu & other soaps GEC channel targeting women audience for talent show program with highest TRP ratings in various regions.Announcement of real beauty winner by 1st of FebLaunching product on 14th Feb on nation wide basis with the launch of the video of the ad. Key members attending all nation campaign are Brand Ambassador Katrina Kaif & local girls.

LUX MUSICAL AD CAMPAIGNSoap is not endorsing filmstars only but music too. Lux ads with a music by Shankar Ehsaan Loy i.e. Sone se bhi sona lage & Kali se bhi komal hai. Companies making efforts that a product should be known not only by some celebrity, or some cartoon or sign, but by some music too. Emphasis on - Product should not only be SEEN but should also be HEARD.

PRODUCT LIFE CYCLE

WHY LAUNCH A NEW LUX DEO?HULs share gone down from 62% to 58% from 2002 to 2006 LUX has been loosing its market in soap Competitors like Fa, Eva gaining market shareDiversification of Lux Brand Target lower SEC segment

MEDIA STRATEGYTV Primary Press, Posters, Banners, Magazines SecondaryAd vehicle TV programs, Jatra, ShaktimanAds on wrappers lux mainstream soap product lineDoordarshan for terrestrial (96% coverage)

VARIANTS & THEIR PRICE150ml = Rs. 120 < Rs. 130 (competitors)75ml = Rs. 70 < Rs 75 (competitors)40 ml rollons = Rs. 45 < Rs 49 (competitors)25 ml rollons = Rs. 28 < Rs 30 (competitors)

BUDGETTV- Local Cable TV Channels (CTN)45 seconds ads for initial 5 days30 sec ads for 10 days15 sec ads for 10 days (prime time average 5 ad spots daily)Outdoor (Billboards at strategic Location) - Rs. 2,00,000 Cost for 25 days- Rs. 78,75000

Print(Newspaper and womens magazine)Daily Thanti Rs. 27,000 ; Kumudam Rs 78,000

Main ChannelsTV budget for ad on all main channel for a time period of 30 secs: 3 croresMonthly MagazineAds on monthly magazine: 45 lacsOutdoorBill boards strategy: 50 55 lacs

BUDGET

Media expenditure in TV Media would shoot up during this period up to 1 CrorePrint Media used information of woman freedom fighter & achievers life style with tricolor on supplement paper expenditure 25 lacsOutdoor bill board display of ad which will cost around 20 lacs

BUDGET

Ads on BalloonCost = Rs. 60, 000 to put an ad in one balloon. Balloons will be prominently red in colour to suit the brandBalloons natural heart shape will suit with V-day Plan to put 10 balloons branded with Lux deo ads to be launched from important cities.Total cost will come to 6 lakh for 10 balloons.

SWOT ANALYSISStrengths: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 & distribution network backed by HULStrong brand image

Dynamically continuous innovations New variants & 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)SWOT ANALYSIS

Weakness:Mainly positioned as beauty soap targeted towards women, lack unisex appealSome variation like the sunscreen, international variant did not do well in the marketNot much popular in rural areas SWOT ANALYSIS

Opportunities:Soap industry is growing by 10% in IndiaBeauty segments compounded annual growth rate (CAGR) is very highLiquid body wash is currently in growth stage Lux should come out with more variants in this segmentLarge market share Strong hold over the market

SWOT ANALYSIS

Threats:High internal competition (Pears Beauty segment)New entrants (Vivel)Maturity stage threat of slipping down to decline stage if constant reinvention is not carried out

SWOT ANALYSIS