This marketing project report summarizes information about Lux soap from Hindustan Unilever Limited (HUL). It provides an overview of HUL, describes Lux soap and its marketing mix, and analyzes Lux's competitors, market segmentation, and recommendations. The report finds that Lux soap has a 15% market share and is HUL's leading beauty soap brand. It is targeted towards women ages 16-35 from middle-income urban and suburban households.

1. Marketing Project Report
on Lux Soap
By:
Amit Kumar Sinha
PGDMRM-002
IPE, Hyderabad

2. Contents:
 Company Profile – HUL
 Distibution Channel - HUL
 Product Mix – HUL
 Overview – Lux Soap
 Marketing Mix
 SWOT Analysis
 Competitor Analysis
 Market Segmentation
 Recommendation
 Reference

3. Company Profile - HUL

4. Company Profile - HUL
• A 52% owned subsidiary of Anglo Dutch giant Unilever.
• India – 1888
• India largest FMCG company
• Touching 2 out of 3 Indian consumer
• 20 distinct categories – Home and personal care products, food and
beverages.
• HLL – HUL
• 100 factories – India – Manufacturing its diverse product range
• Headquarter: Mumbai
• Market share – Toilet soap category – 54.3%

6. Revenue Percentage:

7. Distribution Channel - HUL

8. Distribution Channel - HUL
 2000+ Suppliers and associates
4000 Redistribution stockists
Covering 1 million retail outlets
Reaching 250 million rural consumers

9. Product Mix- HUL

10. The width of the HUL Product mix:
 The width of the product mix refers to the number of
different product line the company carries
E.g:
 Personal wash
Laundry
Skin care
Oral care
Deodorants
Colour cosmetics
Ayurvedic personal and health care

11.  Shampoo
Tea
Coffee
Foods
Ice cream
Width = 12

12. The lenght of the HUL Product mix:
 The Lenght of the product mix refers to the total number of
items in the product mix.
E.g:
 Personal wash: Lux, Lifebuoy, Liril, Hamam, Breeze, Dove,
Pears, Rexona
Laundry: Surf excel, Rin, Wheel
Skin care: Fair & Lovely, Ponds, Vaseline, Aviance
Oral care: Pepsodent, Close up
Deodorants: Axe, Rexona
Colour cosmetics: Lakme
Ayurvedic personal and health care: Ayush

13.  Shampoo: Sunsilk, Clinic
Tea: Broke bond, Lipton.
Coffee: Bru
Foods: Kissan, Annapurna, Knorr
Ice cream: Kwality walls
Width = 30

14. The Depth of the HUL Product mix:
 The depth of the product mix refers to the number of variants of each
product offered in the line
E.g: If close up toothpaste comes in three formulation and in three sizes,
close up has a depth of 9 (3*3)
The Consistency of the HUL Product mix:
 The consistency of the product mix refers to how closely related the
various product lines are in the use, production requirement,
distribution channel or in any other manner.
HUL Product line are not consistent because of its large width.

15. Overview : Lux Soap
 1916 – Laundry soap
1925 – Bathroom soap
India – 1929
First brand ambassador: Leela Chitnis (1929)
Market share is almost equal to Lifebuoy

16. Marketing Mix:

17. Product:
Product Classification:
Tangible
Non durable good
 Lux and other soaps fall into the category of
convenience good.

18. Product Life Cycle:
Maturity Stage

19. Prominent Variants:
 Lux almond
 Lux orchid
 Lux fruit
 Lux saffron
 Lux sandalwood
 Lux rose
 Lux international
 Lux chocolate
 Lux aromatic extracts
 Lux oil and honey glow etc.

20. Logo:
Labelling:
Lux trade character or logo is present prominently
in the package
Female model
Displayed graphically – Key ingredients

21. Packaging:
Different colors – Different variants( Saffron –
Saffron variants & Pink – Rose extracts etc. )
Package size – 100gm, 120gm, 150 gm
Launched – Mini Lux – 45gm - Rs 5

22. Price:
 Competitive prices: Neither high nor low

23. Place:
 HUL distribution network – key strength
(Which helps 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

24. Network:
Factory – Company warehouses – Distributor –
Market
Factory – Wholesaler & Big retailers (Bulk orders) –
30% Sales

25. Promotion:
Active since 1929

26. Featured all top actress of their times.

27. Idea: if it is good enough for a film star, it is good
for me.

29. First Male Brand Ambassador:

30. South India:
1970 – Jayalalitha
Shriya Sharan

31. Sales Promotion:
 Lux gold star offer: 22 Carat Gold coin in the Soap –
First 10 caller (Extra 30 gm gold)
Lux star bano, Aish karo contest: A special
promotional pack of lux soap – Scratch card -50 lucky
winner got the chance to meet Aishwarya rai.

32. SWOT Analysis

33. 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

34. Dynamically continuous innovations – New variants
and 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)

35. 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

36. 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 variants in this segment
Large market share – Strong hold over the market

37. 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

38. Competitor Analysis

39. Internal Competitor:
Lifebuoy: 1895, 18% Market shares
External Competitor:
 Godrej consumers products limited (GCPL):
 2nd
Largest soap maker after HUL
9.2% Market share
Brands: Cinthol, Fairglow, Nikhar

40.  Wipro:
 Brand: Santoor (No 1 in AP) and Chandrika
ITC:
1.75% growth in initial five months
Brand: Superia, Fiama di wills and Vivel
Sold in six states

41. Market segmentation

42. Market segmentation of Lux
Gender: Female
Age: 16-35
Income: Middle income group (Rs. 15 to 20)
Highest selling beauty soap in urban area (Rural
area: Lifebuoy)
Expensive – Affordable,
Target Area: Urban and Sub urban – Upper middle
and middle class people

43. Product Positioning of Lux
 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 share of HUL: 54.3%
 Market share of LUX: 15%
 Better Positioning – Market leader of beauty soap

44. Recommendation:

45. Recommendation:
Ayurvedic variant
Lux kids special soap
Target rural area
Target male customers

46. References:

47. References:
www.capitaline.com
www.hul.com
www.google.com
www.wikipedia.com
www.mbaparadise.com
www.fmcg.com

49. Questions???