LUX soap Strategic management PPT

1. Submitted By: Akshit Chobisa
Akshi Sharma
Arshid Khan
Gaurav Kulkarni
Soaps

2. PRODUCT BACKGROUND
• Launched as a Laundry soap in 1899 for delicate garments -
“Sunlight Flakes”
• Reposition as a bathroom soap in 1925 in US – Lux
• Targeted to Women 16-35 age group
• Hindustan Unilever launched in India in 1929 as ‘LUX’
• Lux came with 5 colors in 1958
“The Beauty Soap of Film Stars”

3. CURRENT SCENARIO
• 2000 Suppliers & Associates, 2500 Stockist covering 6.4
million outlets
• 135000 villages 3.3 million households in Rural
• Soap Market 12,500 billion
• Top 3 Players
Lifebuoy, Lux, Santoor
• Lifebuoy & Lux = 15% each
• Mass, Popular, Premium

4. CURRENT SCENARIO
• Product Variants:
 Peach and Cream
 Strawberry and Cream
 Fresh Splash
 Sandal and Cream
 Purple Lotus and Cream
 Mini Lux
• Pricing:
 Mass (Lux Mini)
 Popular (Peach, Strawberry, Fresh Splash, Sandal)
 Premium (Creamy White)
• Highest Selling Pink

5. COMPARATIVE STUDY
• However Lux is witnessing de-growth in South
India, loosing out to Santoor and Godrej No 1 in
Western India

6. SUPPLY CHAIN

7. GROWTH STRATEGIES
• Promotional Strategies
 “LUX gold Star offer”
 “Star bano Aish karo”
 “Har star lucky star”
 “Gold ring in Lux”
• Rural Area Effective Promotion – DD and All India Radio ads
• Launched Sandal & Cream for Semi-Urban and Rural area
• RsNET software, Supplier NET software, Data management
system
• PR strategies
 Celebrated 75 years with Shahrukh Khan
 Limited edition of Lux soap

8. BRAND POSITIONING
• Lux beauty bar can be regarded to be in the maturity stage
of its life cycle.
• The novel metallic substrate packaging of Lux has been
characteristic of the soaps with the same font style of
writing the brand name.
• The brand promise has evolved from “the beauty bar of
film stars” to “brings out the star in you”.
• Lux believes in making women feel a million dollars.

9. BRAND ADVERTISING AND
AMBASSADORS
• Lux which symbolises Luxury started off with “filmi sitaron ka
saundarya saabun”.
• First advertisement featured Leela Chitnis and since then Lux heavily
relied on Bollywood stars.
• July,2012 : Staring Katrina Kaif and Shahrukh Khan (“Bekaboo” TVC)
Two variants – Lux Peach and Cream
Lux Strawberry and Cream
• June, 2013: Dhanush and Sonam Kapoor after the success of
Raanjhanaa
• Dec, 2013: Deepika Padukone and Imran Khan (“Roop Tera
Mastana” TVC)

10. SWOT
STRENGTHS
• Multiple Variants
• Supply & Distribution
• Strong Market research
• Market leader
WEAKNESS
• Feminine in nature
• Less shelf life
• Spurious brand
OPPORTUNITIES
• Rural Market
• Ayurvedic Variant
THREATS
• Internal Competition
• External Competition
• Consumer preferences

11. 2012-13 2011-12
Revenue 49.3% (12701.82 CR) 48.1% (10636.28 CR)
Result 40% (1615.53 CR) 36.9% (1233.27CR)
Sales Export 5362.62 CR 4303.39 CR
Closing Finished
Goods
273.19 CR 281.21 CR
Closing WIP 68.99 CR 61.08 CR
Purchase of Stock 564.89 CR 418.55 CR
Annual Statistics of Soap and Detergent (HUL)

12. Assets Liabilities
2012-13 2011-12 2012-13 2011-12
2914.64 CR 2584.77 CR 2874.37 CR 2625.55 CR
C E Depreciation Non Cash Expenses
2012-13 2011-12 2012-13 2011-12 2012-13 2011-12
103.22 71.10 77.97 79.41 10.95 16.41

13. SUGGESTED STRATEGIES
• Cluster sampling – (60 Females)
 House Wives
 Students
 Working Women
• Ayurvedic soap
• Kids beauty soap (For more than 5 year old girls)
• Rural penetration
• Targeting de-growth