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Lux
HUL is India's largest FMCG company touching 2 out of 3 Indian consumers. It has a wide product mix of 20 categories including home and personal care products and food and beverages. Lux soap was launched in India in 1929 and over the years has been positioned as the beauty soap of stars and common girls aged 16-35 from middle income groups. HUL has a strong distribution network reaching over 1 million retail outlets across India using its IT-powered RSNet system. Lux soap comes in various variants with different fragrances and packaging sizes and is promoted through celebrity endorsements.
Lux
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- 2. Company Profile HULIndia’s largest FMCG company Touching 2 out of 3 Indian consumer 20 distinct categories – Home and personal care products, food and beverages. 100 factories – India – Manufacturing its diverse product range Headquarter: Mumbai Market share – Toilet soap category – 54.3%
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- 5. The width ofthe 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 The Width of Product Mix HUL
- 6. Shampoo Tea Coffee Foods Ice cream Water purifier Width = 13
- 7. The Length ofProduct Mix HUL : 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
- 8. Shampoo: Sunsilk, ClinicTea: Broke bond, Lipton. Coffee: Bru Foods: Kissan, Annapurna, Knorr Ice cream: Kwality walls Water purifier: pureit Width = 31
- 9. The Depth ofProduct Mix HUL 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.
- 10. INTRODUCTION 1916 LUXlaunched in USA as Laundr soap 1929 LUX launched in India 1925 LUX launched in USA as Toilet soap 1960 LUX went colored
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- 12. POSITIONING Over theyears positioned as a beauty soap of the Stars
- 13. Shift in positioningfrom Stars to Common Girl
- 14. On Age- 16-35years Based on Income- Middle income Group Gender- Female Target Group
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- 17. Introduction (1929- 1950s)Company Objectives Actions Sales Low Cost of manufacturing High Profits Negative Marketing Objective Create product awareness in major cities Product strategy Offer a basic product Price strategy Higher than Lifebuoy Distribution Created network in major cities Advertising strategy Awareness among early adopters.
- 18. Growth- (1950s- 1990s)Company Objectives Actions Sales Rising Sales Cost of manufacturing Average cost reduction Profits Positively increasing Marketing Objective Maximise market share Product strategy Offer variants Price strategy To penetrate the market Distribution Intensive network in the entire country Advertising strategy Awareness an interest in mass market
- 19. Maturity-(1990s to tilldate ) Company Objectives Actions Sales Peak sales Cost of manufacturing Low Profits High Marketing Objective Maximize profit while defending market share Product strategy Diversify brand Price strategy To match the nearest competitor Distribution More intensive focusing on rural area Advertising strategy Multiple brand ambassadors for different variants.
- 20. Source- The EconomicTimes
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- 22. Brand Awareness SalesPromotion Lux Gold Star offer Lux Star Bano, Aish Karo contest: Har Star Lucky Star activity Consumer promotion- By distributions of samples of new variants, coupons, free trials and demonstration at shopping malls, markets and point of purchase. Trade promotion- Discounts and lucrative offers to the retailers via price offs, advertising and display allowances and free merchandises. Business and sales force promotion- Conducting trade shows and conventions. Contests for sales representatives and speciality advertising .
- 23. Brand attributes andassociation Features- Lux soap has been popular for its product offering.It offers its consumers a range of soaps enriched with the goodness of a variety of nourishing ingredients – rose extracts, almond oil, milk cream, fruit extracts and honey which are known to harbour the secrets of incredibly perfect skin. Style- To establish the presence of nourishing ingredients in the new Lux, a unique concept, ‘ingredients you can see in the soap’, was born. A novel metallic substrate packaging beautifully showcased the ingredients and its globally accepted ingredient-linked perfumes heightened the sensorial experience.
- 24. Perceived quality Theproduct offers value for money in the premium segment. It doesn’t compromise on the quality even if decision pertains to increase in price. As Lux is popularly known as brand of celebrities it is also one of the reason that consumer has a perception in mind that this product is of good quality
- 25. Brand loyalty Thebrand Lux has been India`s third most trusted brand according to the recent survey by the economic times. The brand enjoys customer loyalty in rural and urban areas equally. It has generations of customers in the same family. It particularly targets to girls and ladies who are considered to be loyal to a brand if it delivers to the requisite parameters
- 26. HUL Analysis Source-The Economic Times
- 27. Trend Analysis ofLUX Source- The Economic Times
- 28. Future Projection Difficultto maintain market share Innovation and market penetration Recommendations- Ayurvedic variant Lux Kids
- 29. MARKETING MIX MARKETINGMIX PRODUCT MIX PRICING MIX PLACE MIX PROMOTION MIX
- 30. Marketing MixProduct Different Variants Strawberry & Cream Peach & Cream Festive Glow Lux International Lux Purple Lotus & Cream & limited editions
- 31. Lux Peach &Cream Rs 18/90 gms Lux Strawberry & Cream Rs 18/110 gms Lux Purple Lotus & Cream Rs18/110 gms Mini Lux Rs 5 Price
- 32. Promotion Celebrity Endorsement Brand Ambassdors of LUX past & Present Leela Chitnis Madhubala, Nargis, Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai Kareena Kapoor, Sharukh Khan Priyanka Chopra ,Katrina Kaif & the latest Asin
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- 36. Promotional Offers MeetAish- Abhi in London
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- 38. PlaceCutting-edge distribution network- At Hindustan Unilever Limited, distribution network is one of the key strengths that help them reach their products across the length and breadth of this vast country. It has 2000+ suppliers and associates 7,000 stockists and direct coverage in over 1 million retail outlets across India. RSNet- An IT-powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis. For rural India, HUL has established a single distribution channel by consolidating categories.
- 39. DISTRIBUTION NETWORK PARENTCOMPANY FINAL CONSUMER RETAILER STOCKIST WHOLESALER/ DISTRIBUTOR
- 40. Packaging Different colors – Different variants( Saffron – Saffron variants & Pink – Rose extracts etc. ) Package size – 100gm, 120gm, 150 gm Launched – Mini Lux – 45gm - Rs 5
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Editor's Notes
- #3 HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers , Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai , India and has an employee strength of over 15,000 employees and contributes to indirect employment of over 52,000 people. The company was renamed in June 2007 as “Hindustan Unilever Limited”. Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. It estimates that two out of three Indians use its many home and personal care products, food and beverages. [2]
- #11 Lux soap was first launched in India in 1909 as a flaked version of Sunlight soap . Subsequently it was launched in the US in 1916, and marketed as a laundry soap targeted specifically at 'delicates'. The name "Lux" was chosen as the Latin word for "light" and because it was suggestive of "luxury." [3] Lux toilet soap was introduced as a bathroom soap in the US in 1925, and in the UK in 1928 as a brand extension of Lux soap flakes. Subsequently Lux soap has been marketed in several forms, including handwash, shower gel and cream bath soap. Lux soap was launched in India in 1929. The very first advertisement in 1929 featured Leela Chitnis as its brand ambassador. It was branded in India as "the beauty soap of film stars'
- #12 In 2005 Lux celebrated its 75th anniversary sparking of a controversy. Deviating its tradition of roping in Bollywood Divas , this time none other than Shah Rukh Khan endorsed Lux. The ads created instant controversy with marketers discussing whether the brand has suddenly become MALE. Paul Newman also has endorsed Lux soap which shows that Lux makes such stunts to excite the market. Whatever be the controversy, the brand again succeeded in creating excitement in the market. Some argue that HLL was testing a new positioning to appeal to male users while others say that it was a one time endorsement to break the clutter. For marking the 75th year Lux came out with a celebration range endorsed by Kareena Kapoor . The Celebration range too created news because of its variant :Chocolate Seduction. These innovative products created lot of excitement that ensured that Lux remained in the top of mind of the consumers. Another vari
- #13 Over these years, the positioning of Lux also evolved. Earlier the brand used the positioning " Beauty soap of Film stars" . But as the customer evolved, the positioning lost its charm because customers began to doubt whether the film stars actually used this brand. The brand had 2 choices :- either to compromise on market share and uphold the premium positioning or to retain the market share and dilute the positioning.
- #14 Taking a cue from the customers, Lux changed the positioning . The new positioning is communicated with the tagline " Bring out the star in you".Although worldwide the brand is being endorsed by film stars, the actual package usually contains picture of international models and not film stars.