Lux Liquids MRG

Current Market Situation

Introduction

- Holds reputed place in the market- In Pakistan, the body wash market comprises

of Johnson’s, Gillette, Adidas, Palmolive, pears etc.

- Not really common- Main goal : to convert people using bar soaps

to body washes.

Market Description

•Unilever Pakistan segments their market according to geographical areas. • Population segmented into three partsUrban, sub-urban and rural.• Lux, for its body wash targets consumers who

fall under the urban and sub-urban areas • ignores the rural- not much recognition or

knowledge

Market Description (Continued)

-Target consumers -students - women aged 18-30-Women , who are personal care conscious, high brand loyalty towards personal care products.- Interested in retaining soft and smooth skin

Women aged 18-30

LSM 8 +

Urban Dwellers

Personal Care Conscious

Interested in retaining soft and smooth skin

Women aged 18-30

LSM 8 +

Urban Dwellers

Personal Care Conscious

Interested in retaining soft and smooth skin

High brand loyalty towards personal care

products

Are technology Savvy via digital

mediums like the Web and Cellular

Phones

Use SMS & web to keep in touch and

exchange news

Aphrodite Woman

Product Review•It contains methadol giving a crystal opaque like look•It contains pearlizing agent which gives it a more premium and flashy texture•It has 5 times the amount of extract to give added vitamins and nutrition to skin•It leaves you feeling squeaky clean •It is economical in terms of its superior lather volume•It has added silk protein extract which forms a creamy layer that retains skin moisture

It has three variants:i. Peach and Creamii. Strawberry and Creamiii. Magical Beauty

It comes in 3 types of packaging:a) Body Wash 220 ml for Rs.175b) Loofah Pack 220 ml for Rs. 195 c) Loofah Pack 120 ml for Rs. 99

Aphrodite Range & Price

New

Body –wash 220ml 3 variants@Rs.175/-

Loofah Pack 220ml & 120ml

@ Rs. 195 & Rs.99/-

Competitor Review - Body Wash Market

Index

130

100

70

TOP

MID

MASS 38,222 tonsE 13.5m

Lux Aphrodite

Lifebuoy

Johnsons Dove

Adidas Palmolive

Pears

Gillette Vaseline

Fa

Competition always exists in the market.Key competitors include:

1. Gillette: Body wash for men, gives you the power and performance you need to wash away oil, dirt, sweat and body odor, comes in six variants.

2. Johnson’s: Scented body wash, shown to moisturize for 24 hours, leaving skin feeling irresistibly soft and smooth.

3. Pears: especially made to take care of sensitive skin and 100% soap free

4. Palmolive: enriched with the goodness of natural ingredients to help moisture and care for your skin in one easy step. All of them are dermatological tested.

5. Bar soaps: Soap still has a loyal following, particularly among women and older people. Some bar soaps have exfoliating properties that are generally not found in body washes. Costs you a lot less than a body wash.

Channels And Logistics :

• It will be launched only in the top 23 towns of Pakistan which include Karachi, Lahore, Islamabad, Faislabad, Gujranwala, Sialkot, Multan, Hyderabad, Bahawalpur etc.

• Modern trade is the preferred channel and all major supermarkets/superstores nationally will be carrying the product.

SWOT Analysis

SWOT ANALYSIS

Objectives & Issues

Objectives

• To increase market share.• To increase earnings.• Conversion from the usage

of bar soaps to liquids through Lux Body Wash.

• Make Lux Body Wash the most preferred brand among body washes.

Issues

• The major issue that the product faces is that the usage of body washes is not very common here. Out of all the skin cleansing products, the usage of body washes is just 1%. Thus, in order to capture the market Unilever uses effective techniques and marketing strategies to promote the product and build usage of liquids and body washes among consumers.

Marketing Strategy

Introduction Unilever doesn’t use the traditional 4p’s approach for marketing. Their

marketing strategy is based on the MDM Wheel (Market Development Model) which is a finer version of the traditional approach. The model comprises of 9 key elements which are:

• Product is Hero• Right Size/ Price• Education Campaign• Product Experience• Product Availability• Product Visibility• Alligned Promo Strategy• Scale• Customer Buy-in

Superior Aphrodite FormulationOffers formulations superiors to bars

in terms o f lather and skin feel.

Breakthrough Packaging 3 Vairants, 5 SKUs

•Penetrative Launch Pricing through banded offers (2.2x bars)•120ml Penetration loofah Pack•Channel Specific Loofah/Bottle strategy

Education through•In-store BAs•TV content Integration•PR – Influencers to show usage occasion•Point of consumption tutorials

Sampling units: 1 milDirect experience 0.25 milApr-May 2011

Retail Universe expanded to include FG and Cosmetic channel bringing total universe to 7500 Outlets from 300

Large e, sustained and c consistent level of investment: TV, Radio, Outdoors,, DigitalStrong and Massive sampling Program

A&P Contribution: Yr 1 50%, Yr 2 70%

Premium and Superior bathing experience vs. bar to add to Customer assortment

Conversion from soap bars to liquids through Lux Body Wash

•Cross promotion with bars •Out-of-category display •In-store merchandizing

National LaunchMT, Interface, FG

Product is Hero• Lux body wash offers a superior formulation than bar soaps in

terms of lather and skin feel. It contains methadol and pearlizing agents to give it a crystal opaque look and a flashy texture. It also contains extracts that give added vitamins and nutrition to your skin and additional silk protein extracts that forms a creamy layer which helps retain skin moisture. The product has three variants:

a) Strawberry and Creamb) Magical Beauty c) Peach and Cream

• Attractive packaging is another element that adds on to the product.

Right Size/ Price

Size Price

Body Wash (All 3 variants)

220 ml Rs. 175

Loofah Pack 220 ml Rs. 195

120 ml Rs. 99

Education Campaign• For any product to be successful, it is

necessary to educate the consumers about it. Unilever used the following media to educate their target consumers about Lux Body Wash.

1. In store Brand Ambassadors2. Content Integration

> Entice> Inspire

- Channel linking- On ground events- Evolution Game- Online Advertising

> Educate

Product Experience

• Unilever Pakistan used the following techniques to capture the interests of their target consumers:

1. Direct Product Experience:> Lux Luxury Lounge> Salons> Floats

2. Product Sampling:> Sampling Units> SMS based sampling through vending machines> Valet Services

Product Availability

• Since Lux Body Wash is a premium product, its distribution and channel strategy is different from the norm. It is launched in the top 23 towns of Pakistan only and not in the rural areas. Unilever prefers modern trade and monitors its product availability in smooth manner to avoid shortages. Lux Body Washes are available in all supermarkets and superstores nationally. There are now 7500 stores in Pakistan carrying the product.

Product Visibility• Product visibility is the

principle idea behind the success of any product. Marketers strive hard to make their product visible to consumers in the best possible way. Unilever uses cross category display, primary and secondary shelf display and attractive promotional setups in all major super markets like Hyper star, Metro and Macro.

Aligned Promotional Strategy

   Unilever used a large, sustained and consistent level of investment for the promotion of Lux Body Wash

• Television• Radio• Outdoors• Print• Digital

Scale• Unilever has invested a

substantial amount of around Rs. 140 millions for the advertisement and promotion of Lux Body Wash which has contributed a great deal towards the success of the product and increasing its sales. Projected contribution was 50% in year 1 and 70% in year 2. The sales had risen incredibly and reached their peak within the first 10 weeks of launch. W

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Sales T...

Customer Buy-In• Lux Body Wash provides a premium and superior bathing experience

as compared to bar soaps, this quality adds on to customers’ assortment of the product. The liquid silk luxury that the product provides definitely gets the target consumers to buy it.

• Unilever Pakistan used experiential and sampling phases in malls, colleges and supermarkets which encouraged customers to buy Lux Body Wash there and then from the counters. Their immediate purchase was incentivized with a free loofah. These phases included:

-Lux Luxury Lounge -Floats -Product Demos-On shelf fragrance testers -Valet Services -Vending Machine Sampling

Gaining Long Term Consistency

• Unilever Pakistan strives hard to gain long-term consistency in all their efforts to make their marketing strategy a success. They ensure that the quality of the product is up to the mark and the raw materials used are available in the right quantity and at the right time. It also takes into account that the prices of the product offered are in accordance with the customers’ perceived value. Apart from this the company has a well established distribution system that makes sure that the product is readily available in the market and there are no on-shelf shortages.

Marketing Research

• Effective marketing research is the key to the success of any company; it helps to bring innovation and development. Unilever considers innovation as the lifeblood of its business, for this they have a Research and Development Department which is treated as an asset. The R&D Department strives to build capacity in the market and gain greater customer value and understanding.

Action Program

Key Timelines

• Pack Mat/ Sleeves Arrival: Week 7 (Feb 16)• Product/Raw Material Arrival: Week 8 (Feb 22)• Production: Week 9 (Feb 26)• Primaries: Week 10 ( March 07)• Theatrization: Week 13 (March 25)• Entice ATL Break: Week 13 (March 25)

Campaign Flow J F M A M J J A S O N D

Entice - Escape away…..

Inspire – Reveal Lux Liquid Silk

Educate : Step by Step Usage

Liquid Silk Continue the thematic

Short educational tvc

Escape TVC

Campaign Calendar

Budgets

FinancialsStrawberry &

CreamPeach & Cream

Magic SpellPeach & Cream

220 ml 220 ml 220 ml 120 ml

Consumer Price 175 175 175 99

Volumes 50 51 23 18 142

Vol. Cont.% 35.2% 35.9% 16.2% 12.7% 100.0%

GM% 48.7% 49.1% 40.4% 37.3% 46.0%

Brand

Pack Size x Variants Price Volumes 2011 Cont% GM%

LUX LIQUIDS 174 100% 45.8%

BOTTLES : 133 77% 45.8%

220ml x 3 variants 175 116 87% 47.1%

120ml x 1 variant 99 17 13% 37.1%

POUCHES: 41 23% 45.9%

180 Ml x 1 Variant 140 9 22% 43.6%

180 Ml x 2 Variants 125 32 78% 46.6%

Gross Margin Summary

Total Spend140 Mn

ATL96 Million

69%

TV: 71 Million

Outdoor: 15 Million

Content /PR: 4 Million

Print: 2 MillionRadio: 2 Million

BTL16 Million

11%

IMTs/LMTs

Schools/Colleges

Malls

Salons

Trade/In store: 17 Million - 12%Packmat: 5mn – 4 %

Sample: 6mn- 4%

Digital: 2 Million

Investment Mix

Controls

For every medium Unilever has different controls and tools.

• Media:When it comes to TV and other types of media Unilever has intermediaries (3rd parties). These 3rd party agencies track down TVC across channels. These agencies provide Unilever with duration, spots, GRPs, timings and channel mix.

• Outdoor:

Likewise for outdoors (billboards) Unilever has 3rd parties who track the daily wear and tear of the sites.

• Stores:

As for trade, Unilever officials often step out and do market visits themselves.