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Transcript of Product Strategy of lux
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Chapter No. 1 : INTRODUCTION
1.1 Introduction
Marketing
The term marketing has evolved over time, today marketing is based around providing
continual benefits to the customer following a transactional exchange. The Chartered
Institute of Marketing define marketing as ' The management process responsible for
identif ying , anticipating and satisfying customer requirements profi tably'
Philip Kotler defines marketing as 'satisfying needs and wants through an exchange
process
Customers will only undertake the exchange, if they feel that their needs are being
satisfied, clearly the transactional value can not be more than the amount customers are
prepared to pay to satisfy their need.
Marketing requires co-ordination, planning, implementation of campaigns and employees
with the appropriate skills to ensure marketing success. Marketing objectives, goals and
targets have to be monitored and met, competitor strategies analysed, anticipated and
exceeded. Through effective use of market and marketing research an organisation should
be able to identify the needs and wants of the customer and try to deliver benefits that
will enhance or add to the customers lifestyle, while at the same time ensuring that the
satisfaction of these needs results in a healthy turnover for the organisation.
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1.2 Objectives
1 To study the concept of product strategy
2 To study brief about lux
1.3 SIGNIFICANCE OF THE STUDY :
The study is focused on product strategy
1.4 Research Methodology
Source of data collection: To undertake the research for the current study secondary
information was collected from reference book ,journal ,published and unpublished
,financial statement and report of product strategy company newspaper article and
websites.
1.5 Review of literature
Dr. Robert G. Cooper, Dr. Scott J. Edgett lead you through a powerful executive
framework for developing and implementing a product innovation strategy, complete
with numerous examples and useful tips. The authors offer a comprehensive guide to help
companies develop and implement an effective product innovation strategy. Emphasis is
placed on selecting strategic arenas, developing attack plans and determining the resource
commitments needed to successfully deploy your innovation strategy.
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Michael McGrath initiated PACE (Product And Cycle-time Excellence), PRTM's
product-development consulting practice, and has directed many of PRTM's projects in
reducing time-to-market in a variety of high technology companies. He coauthored the
books "Product Development" and "Setting the PACE in Product Development", and has
published numerous articles on international manufacturing, product development, and
trends in the high-technology industry.
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CHAPTER2
Conceptual framework
2.1 Definitions
A product strategyis the foundation of a productlife-cycle and the execution plan for
further development. The product strategy allows the business to zero in on specific
target audiences and draw focus on the productand consumer attributes.
William Stanton- A product is set of tangible attributes including packaging,colour
,price,quality and brand plus the services and reputation of the seller. A product may be
good,service,place,person or idea.
2.2 Building product benefit
Philip Kotler in his book "Principles of Marketing" devised a very interesting concept of
benefit building with a product.
Kotler suggested that a product should be viewed on three levels.
Level 1: Core Product
What is the core benefit your product offers? For example customers who purchase a
camera are buying more than just a camera, they are purchasing memories.
Level 2: Actual Product
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All cameras capture memories, therefore your aim is to persuade them to capture
memories with your camera. The strategy at this level is to add branding, features and
benefits which offer a differential advantage over your competitors.
Level 3: Augmented Product
This level is about exploring if there are any additional non-tangible benefits you can
offer. Competition at this level is based around after sales service, warranties, delivery
and so on. For example John Lewis a retail department store offers a free five year
guarantee with television purchases. A five year guarantee offers their customers peace of
mind that their television will be repaired or replaced should a fault develop.
2.3 Classification of Goods
Classification schemes are used for both consumer goods and organizational goods to
provide a basis for marketing decisions.
1. Consumer Goods
Consumer goods are purchased by final consumers for their own or household use; they
can be classified as convenience, shopping, and specialty goods.
a. Convenience goodscan be purchased with minimum expenditure of time and
effort.
b. Shopping goodsconsumers want to compare with other available offerings before
making a selection.
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c. Specialty goodsbuyers will go to considerable lengths to seek out and purchase
specialty items.
2. Organizational Goods
Organizational goods are purchased by businesses, institutions, etc. to use as inputs into
the production of other products or to facilitate production and business processes.
a. Agricultural, other extractive products, raw materialsraw materials from farms,
forests, mines, and quarries; derived demand for extractive products.
b. Manufactured organizational productsproducts that have undergone some
processing; includes semi-manufactured goods, parts, or components; process machinery
or installations; accessory equipment; and operating supplies.
c. Unique characteristics of organizational goodsmany organizational goods can be
characterized as highly technical, expensive, or purchased in large quantities; many have
relatively long life expectancies, slower growth, and longer maturity cycles; they may
pose environmental problems in comparison to consumer goods.
d. The marketing mix for organizational goodsthe complex and technical nature of
many organizational products often requires a greater degree of customization than
consumer goods; other differences include more emphasis on R&D, after-sale service,
specialized distribution channels, more personal selling and less mass communication,
and complex pricing; these differences require different overall strategies than those used
in consumer goods marketing.
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CHAPTER 3
3.1 History of lux soap
Lux soap first produced in United Kingdom in 1899. It was produced by British
company name Lever Brothers. Lever Brothers was founded in 1885 by William
Hesketh Lever and his brother James. They using glycerin and vegetable oil such
as palm oil to manufacture soap called Sunlight Soap. The flaked version of
soap called Lux soap .Glycerin was a lucrative byproduct of the soap making
process, and by the end of 1886, Lever brothers also had a glycerin factory.
Lever opened their small office in New York in 1895. The company started selling
Sunlight and Lifebuoy but did not doing well until 1916. Lux soap was first launched in
United States in 1916. The Lux trademark was registered in United States in 1900.
Lux soap as launched in India in 1929. The soap's very first advertisement featured
actress Leela Chitnis as its brand ambassador. It was popularly known as 'the beauty soap
of film stars.'
From 1930s right through 1970s, Lux soap colors and packaging were altered several
times to reflect fashion trends. In 1958 five colors were made up the range: pink, white,
blue, green and yellow. In 1990s, Lux launching its own range of shower gels, liquid
soaps and moisturising bars. Today, Lux soap is sold in 100 countries and sales achieved
1.0 billion euros in 2005 alone.
3.2 Lux: product history and trajectory.
The FMCG (fast moving consumer goods) market is highly competitive, one that is rife
with the advent of newer brands being introduced. In a capitalist set-up, there begins a
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system of hard sell and introduction of more innovative products to boost sales and
garner a larger consumer base. Advertising is a major player in the arena of marketing.
For this, it becomes essential to understand the purpose behind the launch of a product,
its various utilities and the trajectory it has mapped in the market.
The soap selected for the study is the globally acclaimed Lux, a product owned by
Unilever. In India, Lux is owned by Hindustan Unilever, an offshoot of its Anglo-Dutch
counterpart and one of Indias largest FMCG companies. In this project, Lux shall be
examined only from the perspective of the Indian market.
A luxurious brand, touted as the beauty soap of the film stars, Lux has been a
consistent ubiquitous part of the Indian household and one of Indias most trusted
personal care products. With generation after generation of women sustaining a product
in the market, consistent with its former glory, a statistic mentioning that three in every
five Indian consumers use Lux may not seem entirely far-fetched.
3.3 PRODUCT LAUNCH AND HISTORY
Initially known as Sunlight Flakes laundry soap, Lux was established as a domestic
brand in the United Kingdom in 1899. It was produced by a British company named
Lever Brothers. The company has been founded by two brothers, James and William
Hesketh Lever in 1885. The brothers manufactured the Sunlight Soap, the flaked
version of which came to be known as Lux. Lux was rechristened its present name in
1900 and launched in the United States where its sales picked up. Lux was launched in
India, in 1929. The very first Lux advertisement featured actor Leela Chitnis. Its popular
slogan was the beauty soap of film stars.
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In order to remain in tandem with the changing fashion trends, Lux changed its colour
and packaging from the 1930s to the 1970s. The five principal colours used for Lux in
1958 were pink, white, blue, green and yellow.
It was only in the 1990s that Lux launched its own range of luxury soaps, shower gels,
liquid soaps and moisturising bars. At present, Lux is sold in a 100 countries with a
turnover of 1.0 billion euros alone in 2005.
3.4 REASON FOR LAUNCH
Lux was launched earlier as laundry soap. Gradually, over the years, it has gained
immense popularity and recognition as a luxury soap. Its identity became synonymous
with the glamorous lifestyle of the movie stars. Lux has pioneered as being one of the
first products to be advertised using women as brand ambassadors.
Earlier a product known for its domestic utility, Lux has moved on to skincare and beauty
products as part of its present brand image.
3.5 THE PARENT COMPANY
Lux was initially manufactured as Sunlight Flakes by Lever Brothers. The company
gained foothold in the market only after 1916, when it was launched in the United States.
Unilever was founded on the first of January in 1930, an amalgamation of Lever Brothers
and the Dutch margarine producer Margarine Unie. The founders were Antonius
Johannes Jurgens, Samuel van den Bergh and William Hulme Lever, 2nd Viscount Lever
hulme.
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Hindustan Unilever Limited was known as Hindustan Vanaspati Manufacturing
Company Limited when it was first established in 1931, as a subsidiary of Unilever, in
India. Further two companies were launched, namely the Lever Brothers India Limited in
1933 and the United Traders Limited (1935). In 1956, all three companies were merged
to form Hindustan Unilever Limited.
At present, the company has a 54.3% market share; headed by Harish Manwani
(Chairman) and Nitin Paranjpe (C.E.O. and M.D.).
3.6 PRODUCT TRAJECTORY
1 Initial stage (19291950s): When Lux was first launched in 1929; it was introduced
only in major Indian cities. It was kept at a comparatively higher price range than its
product competitor Lifebuoy for recovering their initial cost of production. The initial
Lux advertisements were aimed at the early adopters i.e., the consumers who were most
willing to buy that product.
2 Growth stage (1950s 1990s): The pricing was reduced for the purpose of market
penetration. There was an increase in the advertising budget for attracting newer
consumers. Lux continued its trend of using renowned actors from the mainstream film
industry through the decades. Old time magazines like Eves Weekly, Star and Style,
Femina etc invariably featured the leading heroines of the times as models for Lux. Some
of the prominent heroines featured have been Sharmila Tagore, Hema Malini, Zeenat
Aman, Juhi Chawla, Madhuri Dixit and Sridevi.
In the 1990s, Lux launched its own range of luxury soaps, shower gels, liquid soaps and
moisturising bars.
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3 Maturity (1990spresent): As the product gained greater foothold in the market, the
price was increased in order to maximise the profit.
The main marketing objective was also to maximise the market share and introduce
modifications in the product. This included a new range of products entering the market
like Lux Almond, Lux Orchid, Lux Saffron and Lux Sandalwood to name a few.
The brand ambassadors in this stage have been Aishwarya Rai, Kareena Kapoor, Shah
Rukh Khan, Katrina Kaif, Priyanka Chopra and Asin. As of the year 2011, Lux has a
recorded profit of 533 crores.
3.7 ADVERTISING AND MARKETING STRATEGY
Despite its product modifications which shall be later mentioned, Lux has always
marketed itself as a product used by the stars. A common refrain associated with such a
promotional strategy says if it is good enough for the stars, it is good enough for me.
Despite this, Lux was never an entirely elitist product, though it has not embedded itself
within the rural consumer segment.
Because Marketing is all encompassing, it shall be examined first, followed by
Advertising.
Marketing covers the four main aspects, when it comes to any product that needs to be
sold in a market, namely the: product mix, price mix, place mix and promotion mix. The
marketing mix of Lux shall be examined from the perspective of the four Ps in
marketing.
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. Product mix: The product mix refers to any and every feature related to the tangible
commodity to be sold. This part of marketing takes into consideration the ingredients that
form a part of the product, the innovations/modifications done in the product, its external
appearance, packaging, aroma, utility, colour, logo and the overall visual appeal/easy
recall value it serves for its consumers.
Lux has also taken the initiative to introduce product variants like: Lux almond.
o Lux orchid.
o Lux fruit.
o Lux saffron.
o Lux oil and honey glow.
o Lux sandalwood.
o Lux rose.
0 Lux strawberry and cream.
1 Price mix: A sound pricing strategy induces a consumer to purchase a certain product.
It proves to be a worthy incentive. In a country of wide economic disparities like India,
the price of the product takes precedence over the quality, for the less affluent.
When Lux was launched in 1929, the pricing was kept high so that the product could
make up for its manufacturing cost. The prices were later reduced in order to penetrate a
greater market segment. As of now, the product pricing is competitive i.e. on par with
those of the competitors.
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2 Place mix: The place mix refers to not just the distribution channels of a product, but
also the geographic location of its availability which greatly affects its accessibility. Lux
was earlier sold only in major cities at the time of its launch. Post 1950s, the distribution
network continues to be expanded to include smaller towns.
3 Promotion mix: A hoarding on one of the more prominent locations in Mumbai once
said, Doing business without advertising is like winking at a girl in the dark. You know
what youre doing, but she doesnt. And thus, promotion seeks to bridge the gap
between ignorance and purchase.
The how and why behind the promotion goes a long way in brand building.
As reiterated in this project, Lux was promoted as a product used by film stars. And
thus, every major actor has promoted the product. The list included: Leela Chitnis,
Madhubala, Nargis, Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman,
Saira Banu, Hema Malini, Zeenat Aman, Juhi Chawla, Tabu, Madhuri Dixit, Sridevi,
Aishwarya Rai, Kareena Kapoor, Priyanka Chopra, Katrina Kaif, Asin and Kajal
Agarwal.
Although Lux was always advertised as a product meant for indulging the senses, where
bathing was a wonderful ritual in itself, it petered down its approach in the recent years.
The actors are still shown seen indulging themselves. But the focus also moves towards
the ordinary girl in a bid to reach out to its female consumers.
A wonderful example of this promotion was the 2005 Mujhme Star Jagaaye campaign
featuring Aishwarya Rai and Shilpa Anand. The campaign also promoted a Model Hunt
that went underway soon after.
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In 2001, Lux had announced a 22-carat Gold Star offer, wherein a gold coin was hidden
inside a bar of soap. The lucky consumers who find the gold coin also have a chance to
win an additional 30 grams of gold.
In 2004, Lux launched a Lux star bano, Aish karo contest where consumers were
supposed to buy a promotional pack of Lux and scratch the special scratch card to earn
their reward. Prizes varied from living a day in Aishwarya Rais life to beauty kits, Neeta
Lulla saris among a host of other gift vouchers and well more Lux soaps to be won.
On its completion of 75 years in 2005, Lux roped in Shah Rukh Khan as its first ever
male ambassador. The advertisement featured the actor in a bathtub, flanked by his
leading ladiesJuhi Chawla, Kareena Kapoor, Sridevi and Hema Malini. It was known
as the Har Star Lucky Star offer, where every wrapper guaranteed a gift, waiting to be
unwrapped.
In 2009, Aishwarya Rai and Abhishek Bachchan featured in the new Sone Se Bhi Sona
Lage campaign. The campaign also conducted a Lux Super Star Offer where the lucky
winners get to meet Aishwarya-Abhishek in London. The campaign jingle became so
immensely popular that its varied renditions were used in the advertisements that featured
Katrina Kaif since 2009.
Asin Thottumkal and Kajal Agarwal are the newest brand ambassadors of Lux,
modelling together for the Kya Khoob Ho Tum advertisement that has been recently
released.
Lux also relies on market research for making innovative changes by going for door-to-
door sampling of a product, once a year, in urban and rural areas. The brand image is
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firmly and favourably embedded in the psyche of the consumers. The product is also not
particularly expensive, which is said to be a winning combination.
Weaknesses: The weaknesses stated for Lux as a brand are as follows:
0 The product lacks unisex appeal.
o It has been unable to effectively tap the rural market.
O Lux faces competition from brands like Lifebuoy, Pears, Vivel, Fiama Di Wills,
Santoor among others.
Some commonly noted recommendations for Lux:
o Innovations in terms of Ayurvedic variants are recommended.
o.A special offshoot of Lux meant for children, since it has essentially been targeted at a
16-35 year age group.
O The consumer base in the rural area needs to be expanded upon.
O The product should appeal to men, without promoting it solely as a product for
women.
O The product can be altered to appeal to the ageing segment of women who form a large
segment of consumer base in the present product market and account for many billions of
currency for anti-ageing products.
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Chapter4
PROUCT LUX
4.1. Introduction
Lux - the biggest beauty brand in Bangladesh, has retained its leadership through strong
differentiation and consistently sharp positioning on beauty & stardom, No soap brand
could claim to be more aspirational for the Bangladeshi consumers than Lux - ' the beauty
soap of super stars'.Lux, with its promise to turn ordinary girls into stars, launched a
reality TV show "Lux Channel Super Star",which has been running successfully since
2005. I n 2009, the show received the award for the "Best I ntegratedMarketing
Campaign" in Bangladesh Market"Beauty, glamour & stardom" - this is the cherished
dream of every woman wants to look & feel beautiful. For years, Lux has been
beautifying the women of Bangladesh and has turned itself into the biggest beauty brand
Skin. Cleansing is a mature category with universal penetration and stagnant volume over
the years. Skin cleansing market is valued at Tk.8900 million (source: Nielson Retail
Audit).
4.2 Achievements
Lux is the largest skin cleansing brand in the country with a value share of 41% in 2009.
In fact Lux in Bangladesh has the highest market share in Unilever world. More than
Nine in every Ten Bangladeshi consumers enjoy the luxurious bathing pleasure of Lux
during the course of a year. This strong association with consumers has led to Lux
becoming one of the most trusted & respected brands in the country.
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Amidst strong competition from all beauty soaps, Lux has retained its leadership through
strong differentiation and consistently sharp positioning on beauty & stardom. No soap
brand could claim to be more aspirational for the Bangladeshi consumers than Lux - 'the
beauty soap of super stars'.
For last one decade LUX has continuously grown its market share with continuous new
news through innovation and communication. In the last three years (2007 to 2009) LUX
has gained 10% market share. The major growth driver for LUX has been the superior
products with nationwide distribution covering all price segments and world class
communication around the core proposition of beauty.
Product With its world class research & development at Unilever, Lux always offers the
best of the product in skin cleansing, setting the benchmark for the market and is
complemented by the endorsement of beauty icons of each generation.Bangladesh toilet
soap segment is divided into three major segments - popular health, popular beauty and
premium. Lux operates in the popular beauty segment which is the largest segment with
stiff competition from local beauty soaps.
Lux currently has three main variants: Strawberry & Cream in Pink color, Peach &
Cream in White color and Aqua Sparkle in Blue color. Lux's goodness of fruity and
beauty oil drop has become the secret of satin soft beautiful skin for women in
Bangladesh.
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4.3 Recent developments
In 2007, Lux re-launched its brand proposition on "Play with beauty" brand philosophy
based on the brand essence of "Unapologetically feminine". "Play with Beauty"
represents the brand philosophy of Lux. It encourages women to celebrate their own
beauty and never deny themselves of this basic feminine instinct. Lux invites women to
set free their inner spirits into the world of beauty and play with it. Lux believes there are
no ugly women only lazy ones. Lux encourages women to enjoy the process of beauty
without constraining themselves.
This was launched with the global beauty balloon campaign featuring Aishwarya Rai as
the brand ambassador. Lux soap range was relaunched in 2010 with "beauty oil drop" for
"Satin Soft Skin". For this communication Katrina Kaif was casted as the brand
ambassador. All these created an experience in pampering indulgence and luxury
designed for every woman to "behave beautiful".
An Analysis On LUX Beauty Soap.
Visit any departmental store or retail outlet, and you find its shelved stocked with Lux
Beautysoaps in different variants, with attractive colours on the packaging and its
permanent sign of the female model present on the package. Today, Lux is a household
name when it comes to soaps and in many places (especially in rural areas), it has
become a synonym for soaps.People often walk into a shop and ask for Lux, when they
mean, that they wish to buy a soap.
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The LUX soap was first launched as laundry soap way back in 1916, with specially
targeting the delicate garments. The Level Brothers (who found what we today know as
Unilever),encouraged women to do their laundry at home without worrying about those
delicate silks and satins turning yellow which often came as a result of the strong and
harsh chemicals present in the laundry soaps of that time. Lux at that time was much
more gentle on the clothes, it dissolved much more easily and was advertised as being
suitable for home use.
The Lux toilet soap as we know today came around in 1925. It was advertised as a
bathroom soap, and the initial name Sunlight flakes was changed to Lux, which is the
Latin word forLight and was supposed to be a shortened version of the word Luxury.
From 1925 till date, Lux has been marketed in various formsSoaps, Limited Editions,
Bars, Flakes, Liquids, Gels and Body washed.
In India, Lux was launched in 1929, and it has always come in various colours and
packages as well as world-class fragrances. These changes kept coming with changing
fashion trends. In 1958, the soap came in five colours pink, blue, white, yellow and
green, and the customers would buy the soaps in a way that they could match it with the
colours of their bathrooms! Lux has always had the most beautiful women in the film
industry endorsing the brands. If we see internationally, there have been Marilyn Monroe,
Sophia Loren, Raquel Welch, CherylLadd, Demi Moore, Brigitte Bargot, Natalie Wood,
Sandra Dee, Diana Rig, Samantha Eggar,Sarah Jessica Parker, Catherine Zeta Jones, etc.
If we see in India, then the first print ad of Lux came starring Leela Chitnis. After that
there have been a string of leading ladies Madhubala, Nargis, Meena Kumari, Mala
Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema Malini, Zeenat Aman,
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Juhi Chawla, Madhuri Dixit, Sridevi, ashwarya Rai, Karishma Kapoor, Kareena Kapoor,
Babita, Priyanka Chopra, Katrina Kaif, Mahima Choudhry, etc. In fact, Lux would be
perhaps the only womens beauty soap brand which has had male models endorsing it.
This came when Paul Newman (internationally) and Shah Rukh Khan and Abhishek
Bachchan (Indian) endorsed the brand. It can thus be said, that the USP of Lux
advertising is the presence of popular movie stars in it. The positioning of the brand can
be said to be according to the Reference Group by using the famous celebrity at that point
of time. Partially attribute positioning can also be considered for Lux, since the
ingredients of Lux have also been greatly highlighted. Today, LUX also serves as a
sponsoring brand name for so many awards and functions like the popular Lux Zee Cine
awards, making its positioning of being associated with the stars more prominent.
Today, Lux beauty bar can be regarded to be in the maturity stage of its life cycle Lux
has always had the leading actors of their times endorse the brand, which has made Lux
the market leader and the brand has indeed set benchmarks for competition in the market.
Today, Lux is manufactured at more than 71 locations and has more than 2000 suppliers
and associates who provide raw materials for its manufacture. The key markets of Lux lie
in Pakistan, Brazil, USA, China, Bangladesh & South Africa. Lux is also the market
leader in Saudi Arabia, Pakistan, Bangladesh, Brazil and Thailand. It is also one of the
most trusted brands in India. Lux has offerings in two of the four market segments for
soaps. These are popular and premium. The popular segment covers all those soaps that
we generally see sitting on our retail outlet shelves Strawberry and Cream, Peach and
cream, Purple Lotus and cream, etc.
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Chapter5
DIFFERENT STRATEGY OF LUX
The Lux Marketing Strategy is simple - build a brand based on beauty ("Beauty Begins
With Lux") and then throw millions of dollars at the media to support it.
There is little to no talk of what makes LUX any better or any worse or any different than
any other soap. Essentially, they are doing nothing at all to monopolize their marketplace.
The marketing strategy that LUX Soap uses is no different than 90% of the large
corporations out there - Brand It And Slam It . Meaning they spend time coming up with
a catchy tag line, pretty packaging and high priced celebrity endorsements and then spend
tens of millions (if not hundreds of millions) of dollars getting the brand out there on
radio, tv, store ads etc.
MAKING THE MOST OF STRATEGIC OPPORTUNITIES
While new technologies and new markets present appealing growth potential, it can all be
for naught without the right strategy to capitalize on the opportunity. Companies need to
make decisions about where in the value chain to partner and how, what business models
to pursue, and which market segments and geographies to target first. Strategy is never
simple, but in emerging technology areas it can be particularly challenging as:
Novel products with different strengths and weaknesses than incumbents require different
business models
Emerging technologies often cross or blur existing industry and disciplinary borders
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High barriers to entry, switching costs, or simply industry inertia mean making headway
can be difficult
Forging partnerships with start-up companies, or across industry and geographic borders,
introduces new complexity
New trends in innovation management and funding shift demands on talent and may
require new organizations
How Lux Research Helps
Grounded in solid technology and market analysis, Lux Researchs methodology helps
lead clients to develop sound strategies for successful new business development.
Members of Lux Research services work with our analys ts and take advantage of Luxs
data and insights in order to make the right strategic choices to grow their businesses.
Lux supports strategy development in various ways, including:
Innovation leaders monitor Lux Insights for case studies on companies pursuing novel
business models, and to keep up on market, technology, and policy developments that
affect their strategic plans
Executive teams use Executive Sessions with Lux Research experts to help set their
organizations and priorities
Example: An oil and gas company is looking to improve its approach to open innovation.
Lux Research leads an Executive Session with its R&D and strategic planning leaders
that reviews the latest benchmarks and best practices in technology scouting and
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corporate venturing and conducts a working session on applying those recommendations
to the companys own organization.
Business leaders tap Lux Research Market Reports and Webinars to understand strategic
options in the current landscape
Example: A Director at a chemical and materials company is at a chemical and materials
company is in charge of building out a business plan for 3D printing. He reviews Lux
Research data on existing partnership networks in this field and compares to an internal
analysis of key players to identify the best remaining places to partner to gain additional
market share. He also discusses with Lux Research analysts how this field will be
shifting to more open material development standards, and the impact on the best
business models for accessing different end markets.
Corporate strategic planning groups with Lux Research Consulting analyze their options
as new technologies drive industries like agriculture and electronics to collide
Product Category, Market Segmentation, Target Marketing and Positioning
The section elaborates class of the selected product. This part is divided into four part.
part 1 explains under which division the product falls. part 2 explains how Hindustan
unilever india Ltd. differentiates population and divides them into different segments.
part 3 analyze that which division company targets the most and why they target that
particular division. Finally part 4 elaborated the procedure how the company tries to
create a place in the consumer's mind i.e. the product positioning method.
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LUX is less expensive but a reasonable product and worth buying this product. i.e. why
company mostly targets sub urban, urban upper middle and middle class consumer who
are sharing the second largest population of division of the country. From the division of
consumers as per SEC they target category A, B and C, reason is because they understand
to be financially easy and can easily compel to buy LUX.
2.1 Product Category:
LUX is one of the products which fall in the category of the toiletry product as beauty
soap.
2.2 Market Segmentation:
LUX is not only in India but is the world best selling beauty soap. With it few studies
also suggests the same result. Although LUX is best selling beauty soap all over, hence;
the company never tries for a traditional mass marketing in the market, as a beauty soap
LUX never divides its market according to gender.
Hindustan unilever india Ltd. divides the market as per geographical areas. The Indian
present population of the country is divided into three parts as rural, sub urban and urban
area customers. Company extends the differentiation as environmental division as per to
Socio Economic Cluster (SEC) which is income and education. The Table 2.1 figure
shows the Socio Economic Clusters which the company uses.
The SEC divides the consumers in five division starting from A to E, where A falls in the
category which exceeds educated and consumers having low income, and starting from A
to decreasing order E overturn the categorizes .
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2.3 Target Market:
Sub urban and urban middle class, rural poor people are having a larger part of Indian
population. Studies carried out by Hindustan unilever India shows that rich people in the
rural areas very likely buys imported and high class products, other than poor people of
rural areas have a susceptibility buys a low-priced products even without knowing and
investigating its quality. And customers of sub urban, urban middle class and middle
class probably buys affordable and worth products.
2.4 Product Positioning:
Hindustan unilever India Ltd has a good place in the consumers' mind by good and
improved product price, quality, and attribute, presently product in a different loom than
the manufactures do. Company provides the customers with quality of products in the
market and that too in a reasonable price with immense brand, which finally helps the
company to make a place for the product in the consumers' mind as top quality beauty
soap.
The company's market share in the beauty soap manufacturing is around 43%.as in the
beauty soap manufacture all the products in the market are of the same price. Hindustan
unilever can't provide its consumers with more improved price but it has a large position
in location with its fragrance, product deisgn, packaging .
Positioning plan of the company explains the position of LUX in the customers mind
with just one reason the price and the quality.
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Though in relationship with the competing manufacturers pricing of LUX is almost the
same but consumers rates it as the product of high quality and high satisfaction product.
This state of mind created a physically powerful consumer loyalty for LUX, for which
the company is still a market leader in beauty soap category.
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Chapter6
CONCLUSION
From the above marketing analysis its been conclude that Hindustan Unilever Limited
facing a stiff competition from the other companies. Thus to regain its market share for
the growth in their business it should use various marketing tools to achieve its objective.
However LUX soap should penetrate the market in order to survive in this competitive
world and also introduce some new product with the same range in order to increase its
sale and which will have greater impact on their sale. However marketing activity should
also be consider throughout the whole year which will result in gaining competitive
advantage from its competitors.
It provides value to its customers by introducing some attractive features on product like
they launch different fragrance on their LUX Soap such as Almond oil, Rose, Strawberry.
It also put more emphasis for the customer satisfaction by giving them discount on some
product or also by introducing some gold coins in the soap by which consumers get more
attracted towards the product and also showing winners of the gold coins inside the LUX
Soap by using television media by which consumers get satisfied and they being loyal to
its brand. Hindustan Unilever are adopting so many marketing strategies to regain its
market share for the product but it still lacking in this industry such as they advertise their
product by using top star of the BollyWood industries to advertise their product by which
consumers get more attracted towards the product but Hindustan Unilever this using
strategies for long time but they have not make any change to advertise their product it is
the main problem where industry is lacking to sale its product.
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Bibliography
A) Books
Report of the company 2014
Website: http/- (as on September 2014)
E-data:https://www.google.co.in/?gws_rd=ssl#q
http://www.smallbusiness.wa.gov.au
http://archive.csustan.edu/market/williams/4490%20ch%208%20outline.
http://www.mbaskool.com/business-articles/marketing
allthatmatters-niharika.blogspot.in/2012/03
http://www.luxresearchinc.com/about-us/strategy
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