lux marketing

8/8/2019 Lux Marketing

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LUX: THE STAR PERFORMER

The great Indian brand wagon started nearly four decades ago. Great brands sometimesoutlast their ambassadors as proven by Lux.

The first ambassador, Leela Chitnis featured in a Lux advertisement which flagged off the Luxwagon. She gave way to a galaxy of stars which includes Madhubala, Nargis, Meena Kumari,Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema Malini, Zeenat Amaan,Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai Bhachan, Kareena Kapoor Shahrukh Khanand Abhishek Bhachan. The last frontier for most actors aspiring to stardom is becoming a Luxambassador. The brand has outlasted many soaps. From the beginning, Lux became ahousehold name across the country.

Actor Hema Malini says, One of the turning points in my career was when I was signed up byLux. It was then that I knew I had made my mark in Indian cinema as a leading lady. To be aLux star is a much sought after honour amongst leading ladies and it truly means a lot to me.


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Market

The personal wash market is valued at Rs. 60 billion . It is a highly penetrated marketthough per capita consumption lags even South Asian countries like Indonesia. Themarket has seen stagnant sales over the last four years and the low entry barriers

have led to intense competition between national and local brands.


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Achievements

Lux is the largest personal wash brand in the country with a value share of 17%.Three in every five Indian consumers enjoy the luxurious bathing pleasure of Luxduring the course of a year. This strong association with consumers has led to Lux

becoming one of the most trusted brands in the country.

Lux has retained its leadership status by strongly differentiating itself no soap brandcan claim to be more aspirational for the Indian consumer than Lux - the beauty soapof film stars.

The last three years have seen Lux continue to grow far ahead of the market. It hasgained close to 4% share in this period. A key initiative that has fuelled this growthhas been the launch of Mini Lux strategically priced at Rs. 5 to bring it within thereach of 300 million rural consumers. The introduction of new perfume and ingredientvariants, addressing new benefit segments, has been the other growth driver.


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The FOUR Ps

(A)Product

LUX is a Tangible, Non Durable Good on the basis of this classification.

LUX falls into the category of Convenience Good

Product Life Cycle

LUX Beauty Baris in the maturity stage of its life cycle whereas the LUXBodywash is in the growth stage.


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LUX Body LUX Beauty

Wash Bar


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Product LineSoaps: Lux Almond Lux Fruit Lux Saffron Lux Sandalwood Lux Rose Lux International Lux Choclate Lux Aromatic

Extracts : Oil and Honey Extracts

Bodywashes:InternationalLux Body WashWhite SpaRich MoistureFresh Moisture

Shampoos:Lux SuperLux Rich

Lux Jasmine


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LUX Beauty Soap- Form, Features, Style :

With icons of beauty endorsing the brand, the offerings made by Lux have alwaysbeen superior and have always led the market, setting benchmarks for competition.

Lux has beauty offerings in two of the four market segments popular and premium,spanning the needs of varied consumers.

At the upper end of the market is the premium range which continues to offer

specialised skincare to its consumers in the form of International Lux a range ofmoisturising, deep cleansing and sunscreen soaps. Keeping in tune with the changing times it has also launched Lux Body Wash which

offers superior bathing benefits. 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 packagingbeautifully showcased the ingredients and its globally accepted ingredient-linkedperfumes heightened the sensorial experience.

Each of the soaps in the range has milk cream, with the active ingredients of roseextracts, sandal saffron, almond oil and fruit extracts. These create an experience inpampering indulgence and luxury designed to bring out the star in every woman.

Lux Beauty Bar was always projected as a pure and mild solution to soft andsmooth skin.

International Lux Body Wash the last name in luxury.


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Trade Character

Labelling

The LUX Trade Character or Logo is present prominently on the package. A novel

metallic substrate packaging showcases the ingredients, and a female model is shownon the pack. Also diplayed graphically are the key ingredients. The ingredients, placeof manufacture have been listed. Also listed is the consumer complaint cell address incase of unsatisfactory product.

Packaging

A novel metallic substrate packaging beautifully showcases the ingredients, in case ofthe soaps. A female model is shown on the pack. The colors are different for differentvariants such as saffron for the saffron variant, pink for the rose extracts etc.The Barscome in package sizes of 100g, 120g, 150 g


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Developing New Variants

The new Lux Beauty Bar is significantly better on all aspects including aesthetics,sensorials, skin care, value for money, perfume and ingredients.

Lux is always a step ahead of trends rather than following the trend. It would rather

orient and direct the change rather than follow it.

By using brand-oriented research, the company identified two sets of consumers.One was the loyal base of existing Lux Beauty Bar consumers. The other was thetarget segment which would be the source of growth for Lux.

The entire re-launch exercise was aimed at delivering a superior mix, which would tapinto this source of growth.

The consumer needs and triggers which were identified included: fragrance, quality oflather, long-lasting, value for money product, familiarity and belief were factors thattranslated into a sense of reliability and quality.


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(B)Promotion

The promotion mix is classified as follows:Advertising: Transit Electronic Media Print Media

Direct

Sales Promotion

Personal Selling

Direct Selling Indirect Selling

Public Relations

Direct Marketing


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Advertisement : USP or the common thread through all the advertisements is the Presence of Movie

Stars through the ages. The product has been positioned on the basis of REFERANCE GROUP by using a

celebrity popular at that point in time. Some amount of attribute positioning by mentioning the various ingredients has also

been done Lux campaigns have wooed millions of people over the decades. Popularly known asthe beauty soap of film stars, Lux has been an intimate partner of the brightest starson the silver screen for decades. An ode to their beauty, an announcer of theirstardom, advertising campaigns on Lux have featured film stars across the nation,promising their beauty and complexion to ordinary women.

With top movie stars from Madhubala to Madhuri, from Babita to Karisma andKareena having endorsed the goodness of Lux over generations, it was natural that

the brand has built equity as the best beauty soap in India. From the beginning Lux, by using a leading film star of the time, has fulfilled theconsumers aspirations of using beauty soaps via the rationale if its good enough fora film star, its good for me. This later moved into a transformation role of having abath with Lux, which transports the user into a fantasy world of icons, film stars andfairy lands.


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LUX ADVERTISEMENTS THROUGH THE AGES

LEELA CHITNIS IN THE FIRST LUX PRINT ADVERSTISEMENT FEATURING ANINDIAN ACTRESS

MADHUBALA IN A LUX PRINT ADVERTISEMENT


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VYAJANTIMALA IN A LUX PRINT ADVERTISEMENT

SAIRA BANO IN A LUX PRINT ADVERTISEMENT


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Change in communication strategy

However, the communication was slowly seen to be losing relevance, as consumers werebeginning to question if the film star actually used the brand.

In addition to this, several competitive beauty soap brands had begun advertising using similarmethods of communication. In this context, the global brand team for Lux developed a new

communication strategy. This strategy bring out the star in you for the first time moved thebrand away from the long-running film star route. The film star still features in the newcommunication but not as her gorgeous self but rather as an alter ego/projection of the protagonist(a regular girl), for a few seconds of the entire ad.

Thus, for the first time the film star was used as a communication device and not as the mainfeature of the ad. The move away from the film star and her fantasy world to a regular Lux user,with the focus on the protagonists star quality, is a change from the norms set by Lux advertisingin the past. With the new communication strategy, the film star is used purely as a communicationdevice to portray star quality in every Lux user.

This idea bring out the star in you puts the consumer at the heart of the brands promise. Thispromise goes beyond the functional deliverables of soap, beyond bathing and the bathroom to theworld outside. Its a world where with Lux on her side, an ordinary woman can impact her worldwith her own star quality.

This is a successful attempt to bring the brand closer to its users and to give it a more youthfuland contemporary image.


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Breaking away from tradition, HLL resorts to a male and metro sexual Shah Rukh to revive Lux

The Lux brand, Hindustan Lever decided to break away from tradition. It has changed the feminine faceof its second largest selling soap brand to show reigning superstar Shah Rukh Khan sitting in a tub ofpetals along withactresses of yesteryear who havefeatured as Lux models. Shah Rukh is a big draw and women just love him. The target audience for Luxis women. Shah Rukh is a great favourite with women of all ages. So the strategy for Lux has not really

changed. It is just the execution that is very different; instead of a female star in the tub, they have ShahRukh.The new campaign featuring King Khan shows him immersed in a bath tub with petals and talking about`his beauty secrets' (`Meri Sundarta Ka Raaz'). The beauty soap of female stars has moved from

traditionally using reigning film stars and now has been endorsed by nearly 50 Indian film stars.


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Sales Promotion Schemes Used By LUX

yLux presented 30 gm gold each to the first three winners of the Lux Gold Star offer .

yLux Star Bano, Aish Karo contest . All one needed to do was buy a special promotionalpack of Lux soap. The pack comes with a special scratch card. The 50 lucky winners andtheir spouses were flown down to Mumbai to live a day like Aishwarya Rai would. Theycould also be given gift vouchers worth Rs 50,000 from Shoppers' Stop along with anexclusively designed Neeta Lulla sari and a beauty makeover by Michelle Tung,

Aishwarya's preferred designer and stylist.


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LUX PR Activities

Lux celebrated 75 yrs of existence in a grand way by unveiling Shahrukh Khan astheir latest brand ambassador. Kareena Kapoor, Juhi Chawla, Sridevi and HemaMalini graced the event and made it special. All the stars have endorsed Lux in thepast.


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(C)Price

Prices of HLL are considered the most competitive in Indian market. With anoperating profit of 470 Mn$ and a turnover of 2,190 Mn$, HLL has no need to lookback on the fact that it is a leader. The main fact for this huge success story is thestrategic pricing decision the company has adopted from time to time.

HLL always gives value for money to his consumers. It is known for its competitivepricing. HLL has the advantage of quoting a reasonable price due to its economy ofscale. HLL also can quote a very competitive price due to its superior technology andoptimum utilization of inventory. HLL has the product range that meets the needs ofall classes of consumers. It has the products that are categorized as premium andmass products, which have been described above. HLL matches its prices with thecompetitor who is operating

In the same category. HLL also gives price offs on its products to reward consumerswho are using it for a long time and also to attract new consumers.


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(D)Place

Cutting-edge distribution network

HLLs distribution network is recognized as one of its key strengths -- that which helps reach out itsproducts across the length and breadth of this vast country. The need for a strong distribution network isimperative, since HLLs corporate purpose is to meet the everyday needs of people everywhere.

It has 2000+ suppliers and associates, 45 C&F.A.s, 7,000 stockists and direct coverage in over 1 millionretail outlets across India.

To meet the ever-changing needs of the consumer, HLL has set up a distribution network that ensuresavailability of all their products, in all outlets, at all times. This includes, maintaining favorable traderelations, providing innovative incentives to retailers and organizing demand generation activities among ahost of other things. HLL boasts of placing a product across the country in less than 72 hrs.

The first phase of the HLL distribution network had wholesalers placing bulk orders directly with thecompany. Large retailers also placed direct orders, which comprised almost 30 per cent of the total orderscollected.

Today, the goods are transferred from the factory to the company warehouses (C&F.A godowns) and aresent to the distributor from there on a daily basis. From the distributor, the stock reaches the marketthrough daily sales. Typically, these include the salesman registering the order of a retail outlet anddelivering the goods the next day.


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Recently HLL has changed its traditional way distribution and came out with a newstrategy of distribution. Its because of the change in buying pattern of the consumerdue to more disposable income. There are different channels of distribution likeModern Trade, which covers all chains of super markets like Food World, who get thestocks directly from the company. Wholesalers and second leg of big retail outletscalled Super Value stores come under the surveillance of the distributor along withthe mass retail outlets. There is also this new concept in the HLL distribution channelcalled Kiosk. Kiosk is a small shop that sells only sachets and low priced items (belowRs.10/-). Kiosk also does not come under the surveillance of the distributor.

In addition to the ongoing commitment to the traditional grocery trade, HLL is buildinga special relationship with the small but fast emerging modern trade. HLL's scaleenables it to provide superior customer service including daily servicing, improvingtheir range availability whilst reducing inventories. HLL is using the opportunity ofinterfacing more directly with consumers in this retail environment through speciallydesigned communication and promotions. This is building traffic into the stores whileyielding high growth for the business.


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HLL Way has also led to implementing best practices in customer management andcommon norms and processes across the company. Powered by the IT tools it hasfurther improved customer service, while ensuring superior availability and impactfulvisibility at retail points.

For rural India, HLL has established a single distribution channel by consolidating

categories. In a significant move, with long-term benefits, HLL has mounted aninitiative, Project Streamline, to further increase its rural reach with the help of ruralsub-stockists. It has already appointed 6000 such sub-stockists. As a result, thedistribution network directly covers about 50,000 villages, reaching about 250 millionconsumers.

Distribution will acquire a further edge with Project Shakti, HLL's partnership with SelfHelp Groups of rural women. The project, started in 2001, already covers over 5000

villages in 52 districts of Andhra Pradesh, Karnataka Madhya Pradesh and Gujarat,and is being progressively extended. The vision is to reach over 100,000 villages,thereby touching about 100 million consumers. The SHGs have chosen to adoptdistribution of HLL's products as a business venture, armed with training from HLLand support from government agencies concerned and NGOs.


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SWOT PROFILE OF LUX

STRENGTHS

1.Strong Market Research (door to door sampling is done once a year in Urban and Rural areas)2.Many variants3.Strong sales and distribution network backed by HLL4.Strong brand image5.Positioning focuses on the attractive beauty segment6.Dynamically continuous innovation of the product and brand rejuvenation new variants7.Perceived to have high value for money8.Though it is in popular segment, it is having mass appeal/market presence across all segments9.Unique advantage of having access to resources and assets of HLL

WEAKNESSES

1.Lux is mainly positioned as beauty soap targeted towards women, hence it lacks unisex appeal2.Usage rate/ wear rate is high and is generally mushy and soggy3.Some variants like the sunscreen, International variant did not do well in the market4.Certain advertisements like the recent one with Shah Rukh Khan resulted in controversial interpretations of the

message of the advertisement and lead to some loss of focus5.Stock out problems - replenishment time is high in semi-urban/rural areas


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THANK YOU

lux marketing

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