Annexure

Homework Title / No. : launch of lux deo Course Code : _MGT514 Course Instructor: Mr. Manish Rajput Course Tutor (if applicable) : _____________

Date of Allotment: _____________________ Date of submission : 12/12/09

Student’s Roll No A (23) Section No. : S1901

Declaration: I declare that this assignment is my individual work. I have not copied from any other student’s work or from any other source except where due acknowledgment is made explicitly in the text, nor has any part been written for me by another person.

Sahil chauhan

Student’s Signature

Evaluator’s comments: _____________________________________________________________________

Marks obtained : ___________ out of ______________________

Content of Homework should start from this page only:

TERM PAPER

OF Marketing Management [Launching lux deo]

SUBMITTED TO:- SUBMITTED BY:-

Mr. Manish Rajput Sahil Chauhan

Regd no. 10904914

Sec – RS1901 (A23)

Contents

1. Overview of company2. Product description3. Product profile/brand value 4. Market Analysis & Strategy of LUX Deos 5. Marketing Plan, Objectives and Strategies

6. Product mix and line

7. Launching of Deo

8. Market growth of deodorant

9. Swot analysis of HUL 10. Bibliography

First of all I would like to take this opportunity to express my gratitude towards all those people who have helped me in the successful completion of this term paper, directly or indirectly. I would also like to express my sincere gratitude towards “Mr. Manish Rajput” for her guidance and help which she willingly provided at every step of my term paper.

Finally, I would like to thank all my family and friends for their encouragement,

support and good wishes

Acknowledgement

Company Description

Hindustan Unilever Ltd (HUL)

We all know that Hindustan liver limited is one of India’s (FMCG) fast moving

consumer goods company and have brands like Lifebuoy, Lux , Surf Excel, Rin, Wheel, Fair &

Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr ,

Kwality Wall's are household names across the country and other products such as soaps,

detergents, personal products, tea, coffee etc

In the 19th and 20th century Unilever export its products to India. Firstly HLL

began to export Sunlight soap in 1888, which was followed by Lifebuoy in 1895 and other

brands like Pears, Lux. Unilever set up its first Indian subsidiary, Hindustan Vanaspati

Manufacturing Company In 1931, followed by Lever Brothers India Limited in 1933 and United

Traders Limited in 1935. The three companies were merged and the new entity that came into

existence after merger was called as Hindustan Lever Limited in November 1956. HLL offered

10% of its equity shares to the Indian public, and was the first foreign subsidiaries to do so. HLL

acquired many companies like Brooke Bond, Lipton and Chesebrough Pond's USA and becomes

the one of the biggest player of FMCG sector

HLL has also set up subsidiaries in Nepal, Nepal Lever Limited

(NLL). The NLL factory manufactures HLL's products like Soaps, Detergents and Personal

Products both for Nepal and exports to India. In February 2007, company has been renamed as

"Hindustan Unilever Limited" to maintain balance between the heritage of the Company and the

future benefits with the corporate name of "Unilever”.

In January 2000, due to divestment strategy, the government decided to allocate

74 per cent equity in Modern Foods to HLL. In 2002, HLL acquired the government's remaining

stake in Modern Foods.HLL is the biggest Fmcg company in India having largest market share

and is one of the best marketing company in India.

Detailed Product Description

Lux

All know that LUX is one of the premium brands of HLL having

soaps, face wash, body lotion etc and is also famous among people. Everyone like to look

gorgeous and enjoy that confidence which makes us feel better. And that's what the Lux range

offers you – at a price you can afford. From the look and feel of the product packaging to the

subtle fragrances – is a delight to the senses. Lux has been making waves since 1924, when it

launched the world's first soap at affordable price. Lux was first introduced as toilet soap in

1925 produced by Lever Brothers. From the very beginning Lux soap colours and packaging

were altered several times to show changing fashion trends. Five colors made up the range:

pink, white, blue, green and yellow .

In in1990s, Lux responded to the growing trend by launching its

own range of shower gels, liquid soaps etc. Lux beauty facial wash, Lux beauty bath and Lux

beauty shower were launched. In 2004, the entire Lux range was relaunched in the to include five

shower gels, three bath products and two new soap bars.

Since 1930, over 400 of the world’s most stunning and gorgeous women

have been proudly associated with Lux advertisements and events. Marilyn Monroe, Demi

Moore and Aishwarya Rai have all been part of the Lux glamorous story.

Recent Developments

HUL’s LUX has forayed into other categories including soaps, face wash,

hand wash, shower products etc. Also, in keeping with its tradition of providing modern,

products to consumers, company has launched a range of LUX deo.

Lux has also introduced new hand wash and soaps according to the needs of health conscious

consumers. Available in sandal, lime, spice and rose ensuring germ-free hands. The product was

launched in 2008.

Brand Values

Ever since its launch in 1924, Lux has been growing its brand image

regularly. All the campaigns for different variants have captured various changes in the brand

values without keeping away from the brand essence i.e. beauty and Freshness. These values

have a strong appeal and relevant appeal to both the sexes. Hence over the last couple of years,

lux has always closely monitored consumer behavior, changing attitudes and emerging needs of

the costumers. All of this has resulted in a brand that has not aged but grown into an active and

changing personality according to the need of the customer.

After 85years, Lux, remarkably still evokes a very high degree of trust and

respect in customers mind is still a tough competitor for other products. Thus it can be said that

lux has a good brand value and image in the mind of the customers.

Launching of LUX deo

We are proud to propose a new range of deodorant protection brings you

incredible natural effectiveness that is kind to both, you and environment. This year launch of the

new variant lux Deo, with the baseline ‘Aur Kya’ to communicate its positioning. It addresses

towards the need for effective body odour removal through the unique proposition of deodorant.

Today in the market, lux has three distinct variants, Lux face wash, beauty soap, creams

continues to operate in the 'healthy skin' category. Lux soaps are the strongest player in

'freshness' category.

This is a natural extract recommended by a professional dermatologist in

Arizona, U.S.A. It was already approved for safety and hygene.Lux Deo is the latest offer from

the HUL. This latest deo is based at satisfying a problem, hesitation to get close because of body

odour. It has a unique long lasting formula that prevents body odour for all day long. It comes in

two exciting fragrances: Spice and cologne that keeps user feeling fresh all day long.

Product profile

The lux Body Deodorants made from 100% natural mineral salts which eliminate and prevents

body odor and allows the user feel fresh and clean for all day long. It gives excellent protection.

And, it is just pure and natural and prevents from causing bacteria. The protective layer will not

block pores. It is 100% free of perfumes and harmful chemicals. It is economical and ideal for

travel, as it is won't leak or run out unexpectedly.

Directions: Always apply to clean and dry skin. Simply spray deodorant underarms and also

works great for foot odor. For spray, just spray on directly on skin.

Promotion

LUX has been closely identified by its innovation, which is reflected in its

promotions. It was the first brand of this category that comes up with an idea of creative offers

like gold coins and pendants in soap. After getting a good response from these offers they started

new offers to increase the sales like, Buy 3 Get 1 Free.

LUX advertising always had a strong impact on customers by carefully

choosing the elements which reflect aspects of the brand. No wonder then, the commercials

featuring of celebrities like, Hema Malani, Aishwarya Ray and kareena Kapoor makes the Lux

very famous among women’s and this creates an curiosity in the mind of girls for using the

product.

The confidence that advertisement shows were closely connected to the

properties of the Lux product. The lux Deodorant targets audiences in the markets of India that

has appealed to different age groups of both sexes. The current advertising reinforces this bond

and the fact that lux has provided protection over the years.

Market Analysis & Strategy of LUX Deos

This report shows the market for the range of Lux Deodorants. LUX, a brand

of Hindustan Unilever Ltd. (HUL) in India, is launching a new range of deodorants in Indian

market. Thus this report contains information regarding market, image positioning etc. that will

help to launch the deodorants in the market. This report shows the market for Deodorants over

last 4-5 years, with relevant supporting quantitative information. Report also projects

performance and potential of the market for the next 5-6 years and predicts the situation of

market for the product.

After analyzing the situation of market there is need of identify the multiple segments of market

for deodorants by using certain criteria such as demographic, psychographic and behavioral

characteristics of the consumers. Segmentation will help in defining the target customer. Among

these segments, we will analyze only those in which Lux is active because of the best

opportunities available. This is called ‘Target Segments’ and the procedure is called Targeting.

After specific targeting become clearer then the need of identifying target consumer arises, or in

other words it can be said that brand Positioning for Lux. Thus, the STP (Segmentation,

Targeting, Positioning) model will help in described above and helps us in defining the

marketing process for launching the product successfully.

Marketing Plan, Objectives and Strategies…

If a company wants to increase their sale they should have marketing objectives and should lead

to sales. .They should:

be clear

be measurable, and

Have a stated time frame for achievement.

Examples of marketing objectives follow:

Must create awareness among the target audience by 30 percent in one year.

Must Inform target audience about features and benefits of product and its competitive

advantage through advertisements and marketing activities.

Decrease or remove potential customers' resistance to buying product,and leading to a 20

percent increase in sales that are closed in six months or less.

If you had multiple objectives made sure that they should not conflict with each other and

should be consistent. Also, be sure that the remainder of your marketing plan components - the

marketing strategy, action programs, controls and measures, budget - supports your marketing

objectives.

Setting your marketing objectives and finalizing the remaining components of your marketing

plan may serve as a reality check: Do you have the resources necessary to accomplish your

objectives?

The marketing strategy section of your plan outlines your game plan to achieve your marketing

objectives. It is, essentially, the heart of the marketing plan. The marketing strategy section

should include information about:

Product – about your product(s)and services

Price - what you will charge customers for products and services

Promotion - how you will promote or create awareness of your product in the

marketplace

Place (distribution) - how you will bring your product(s) together with your customers.

These are the "4Ps of marketing":

Product

Price

Promotion

Place (distribution)

However, brief explanations of what should be included in the marketing strategy section of your

marketing plan pertaining to the 4 Ps appear below.

Product Description

A product can be a physical item, a service, or an idea.

Describe in detail your products or services in terms of the features and benefits they

offer customers.

Describe what you need to have or do to provide your product or service (how it's

produced).

Pricing

List the price of your products and describe your pricing strategy. List price ranges for product

lines. For example, if your product is a line of cosmetics, include information in this strategy

section about your deodorant "ranging in price from 100 to 150 per item" rather than a detailed

product price list. (You should, however, consider including a detailed price list in the

Supporting Documents section.)

Describe any price flexibility or negotiating room, as is common with large purchases such as

houses or cars. Outline any discounts you offer for long-term customers, bulk purchases or

prompt payment. Also, include the terms of sale, such as "net due in 30 days," extended payment

plans, and whether you accept credit cards.

Promotion Plan

a promotion plan describes the tools or tactics used to accomplish your marketing objectives.

In your Action Programs section, you will describe the steps that need to be taken in detail, when

they should be done, who will do them, and so on.

Placement (Sales and Distribution)

In this section, describe how your products and customers "meet" or come together through sales

and distribution.

Describe your sales philosophies and methods. Do you employ an aggressive sales method for a

large number of quick sales, or a relaxed method where the emphasis is on having customers feel

comfortable to come back another time even if they don't buy now? Do you use contract sales

people or employees? Explain your approach to sales issues.

PRODUCT MIX AND LINE

A product mix (also called product assortment) is the set of all products and items that a

particular seller offers.

A product mix consists of various product lines.

A product line is a group of products that are closely related, because they function in a similar

manner, are sold to the same customer groups, are marketed through the same types of outlets, or

fall within given price ranges.

Width – Number of different product lines offered

Length – Number of products offered within a particular product line.

Product Line Depth – Number of versions offered of each product in the line.

Packaging

Packaging involves designing and producing the container or wrapper for a product. The package

may include the product's primary container a secondary package that is thrown away when the

product is about to be used and the shipping package necessary to store, identify, and ship the

product. The Soothe deodorant contain in stylish bottle. It will be the primary container of the

Soothe, and there will be no secondary package for the Soothe deodorant.

Growing Use of packaging as marketing tool:

1. Self service

2. Consumer affluence: consumer is now willing to pay a little more for Convenience,

appearance and prestige of better packages.

3. Company & Brand Image: Instant Recognition

4. Innovation Opportunity

Labeling

Printed information appearing on or with the package, is also part of packaging.

On the bottle of the deodorant there will be really stylish printing innovated by experienced

designers, stylish cap. Written all the information about the Soothe deodorant.Net volume, price,

manufacturing date and the variant.

Launching of Deo

HLL want to launch a new product of lux into market. This time

co. is launching lux deo with different fragrances for men’s and women’s. They had done

homework and decided exactly what to offer and how to generate sales. It is very difficult to

increase sales because these days large number of products were launched everyday and there is

very tough competition in market. So for this there is a proper procedure to launch product in the

market and defined a proper procedure of launching a new product in the market. Lux deo is the

brand extension of the lux range and it will provide benefit in the success of the product. These

are the following steps kept in mind………….

1. Identifying the competitors: - Before launching the product a proper market

study must be done to know the competitors in the market and their strategies. There are various

competitors of HUL in market offering large range of products like dove, Park Avenue, play boy

etc. So for this there is a need of market survey and have to take a serious look at competitors

by doing the proper SWOT (strengths, weaknesses, opportunities and threats) analysis. By doing

swot analysis strategies and target market of competitors will come to know and helps in making

the policies to compete with them. As HUL is launching deo under the brand name LUX it is

important to know the products offered in the market by competitors. There are various products

like brut, axe etc offered by competitors but if new product or service is entirely unique and

without any competition, it's important to put product according to the customers

prospective .Once it is decided whom will be competitor’s, review their marketing strategy,

including their ads, brochures and websites and target market after all the process it is to be

evaluated how new product will stand up against other products.

2. Target the customer. To successfully launch a new product with minimum financial

outlay, it's essential to focus exclusively on those customers who are targeted according to the

different segments. These customers may be those peoples currently buying something else and

can appreciate the additional features of new product offered to them. So for targeting the market

there must be a proper segmentation according to age, sex, taste, preferences etc. There will be a

proper positioning of product in the mind of the customers.

3. Define marketing strategy and techniques. After defining the target

customer, sales and marketing channels also must be decided. It must be decided whether to do

distribute through internet or dealers .Generally, multichannel marketing achieve the greatest

success .It is necessary to know target customer and target market. Suppose your strategy is to

market a low-cost customer you might choose traditional direct marketing sales as your primary

channel. The trend from traditional strategies based on personalization, rather than generalization

approaches integrated. If you want to target high cost customer you might use traditional as well

as modern techniques to distribute the products. HUL involve the whole organization, because it

needs both internal and external communications to identify the strategy and direction of the

organization.

4. Test concept and marketing approach. With all the efforts and money it takes

to bring a new product to market, it is foolishness to rush to the launch phase before testing your

product. It's best to examine product, marketing message and marketing materials offered by the

company. Before launching the product it is to be tested whether the product will be accepted by

the customer or not. Only after testing is complete, company should proceed to the final creation

of marketing approach and strategy.

5. Positioning:-Positioning is the art of designing the company’s offer and image to occupy

a place in the mind of the target customers. The goal is to locate the brand in the mind of

consumers to maximize the benefits of the firm. Positioning starts with a product . Therefore it is

important to develop approach in order to obtain a brand image, target the market and to position

the LUX deo to their respective target markets. The present report focuses on the explanation of

the promotional, marketing mix and business strategy.

6. Roll out campaign. Campaign often plays a vital role in the launch of a product. There

are various ways of campaign like through advertisement, events, public relations etc .But no

matter what publicity route you choose, first make sure your product is ready and available for

purchase in order to maximize returns. And other marketing efforts should follow closely on the

press roll out. Monitor the results of all media, and in the first weeks and months, be prepared to

adjust campaign to take advantage of what is working best. Company must hold various

promotional events, advertisements for the promotion of the product. As HLL is launching the

deo there must awareness and availability of the product in market which is only possible by

promotional campaign. All the Medias like newspapers, tv, radios, internet etc must be used for

the promotion of the product.

7. Launch of the product: - After a proper campaign process it is to be decided about

the launch of the product keeping in mind the various concepts of marketing mix. A proper

process must be followed keeping in mind the 4p’s price, place, product, promotion .when all is

set launch product by handling an inaugural ceremony.

8. Taking the feedback from customer:- work doesn’t ends after launch of the

product now it’s time to take feedback from customer about the product. Feedback will tell

whether the product is successful or not. Company will also come to know about the need of

customer and can review the product. Feedback is necessary because by this it can be specified

that what consumers want and what they are getting. It will also help in the launching of new

product.

9. Know your product's lifecycle. The campaign which is used during the

introduction phase of product launch will need to be updated as product matures. It is needed to

monitor the marketing results carefully and record the results that will indicate when it's time to

revise the product, media message for generating the higher revenue. This is needed because

every product reaches the maturity stage where revenue generations decrease and it’s time to

review the product.

Market growth of deodorant

This graph shows the market growth of the product after the one month of launch up to

the fifth month. According to this market survey products market share increases rapidly but due

to tough competition in the market it starts declining at the ending of second month.

Graphic representation of product growth

But after the end of the third month sales increases due to the quick response of the

company.HUL increases the sales promotion of deodorant creates awareness in the market. Due

to this there is increase in the sales and remain constant up to fifth month. This shows that after

launching the product job doesn’t ends product but it needs regular promotion in case of new

product. After examining the market cause of decline in the growth of product indicates that it is

caused by due to the decrease in the price of the other company’s product. So here HUL reduces

its products prices and records increase in the growth rate and maintained it. Market survey is

must in today’s competitive world because market trends keep on changing regularly so that’s

why it’s necessary.

Swot analysis of HUL

Strengths:

1. HUL as well as Lux has Strong and well differentiated brands with a good share positions

in the market. Brand image and value will help in positioning of the new product.

2. Strong R&D based products which are delivered to customers make a platform for the

success of deo due the trust of customers on HUL.

3. Deodorant have advantage due to the introduction of two new fragrances i.e. Spice and

cologne.

Weaknesses:

1. Competition with own products

2. Competition with other products like Rexona, Setwet etc

3. High price then other products

Threats:

1. Aggressive price competition from local and multinational players.

2. Unfavorable raw material prices.

Opportunities:

1. Brand growth through increased consumption depth and frequency of usage across all

categories.

2. Market and brand growth through increased penetration especially in rural areas.

3. Upgrading consumers through innovation to new levels of quality and performance.

4. Growing consumption in Out of Home categories Establishing HLL as a sourcing hub for

Unilever companies in various countries.

Bibliography

Marketing management by Philip Kotler, Kelvin Keller

http://EzineArticles.com/?expert=Sean_R_Mize

http://Entrepreneur Media.com

http://www.bnet.com/2410-13240_23-57049.html

http://www.entrepreneur.com/tradejournals/article/160927574.html

http://www.superbrandsindia.com