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PROJECT REPORT ON “INTEGRATED MARKETING COMMUNICTION OF LUX SOAP BY HINDUSTAN UNLEVER LIMITED” Submitted by Lalit Kothari 17028 Ravi Kumar 17041 Soniya Yadav 17048 Faculty Prof. Dr. Madhavi Pandya Siva Sivani Institute of Management Kompally, Secunderabad (2008-2010) 1| Page

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Page 1: Lux Term Paper

PROJECT REPORT ON “INTEGRATED MARKETING COMMUNICTION OF LUX SOAP

BY HINDUSTAN UNLEVER LIMITED”

Submitted by

Lalit Kothari 17028 Ravi Kumar 17041 Soniya Yadav 17048

Faculty

Prof. Dr. Madhavi Pandya

Siva Sivani Institute of Management Kompally, Secunderabad (2008-2010)

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ABSTRACT

Hindustan Unilever Ltd. is a well-known and largest FMCG company in I ndia. HUL has

always revamped its products to meet the changing needs of the consumer without

compromising on the quality. This r eport deals with one of its premier brands "LUX". HUL

leads the market in the toilet soap category with 54.3% mar ket share. Lux has inched up to be

on par with Lifebuoy in HUL's soaps portfolio. The Lux brand now has an almost equal market

share as Hindustan Lever's largest selling soap brand - Lifebuoy. This r eport gives an overview

of the history of the company and the brand "Lux", the various strategies adopted to survive in

the market for over 75 years and the var ious competing brands. The promotional activities

adopted, the brand's strengths and weaknesses, threats faced are also analysed. The FMCG

category is always a battleground for all the competing firms and the bathing soap category is

no different. With more firms entering the market, maintaining the customer base is not very

easy. Within six months, ITC's soap products have been able to capture 1.75% of the market

share.

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Table of Contents

ABSTRACT ......................................................................................................................... .. 2

TABLE OF CONTENTS ........................................................................................................ 3

EXECUTIVE SUMMARY ..................................................................................................... 4

INDUSTRY MAJOR

ANALYSIS ........................................................................................................ 5

PLAYERS ................................................................................................................ 5

EXTERNAL COMPETITORS....................................................................................................8

HINDUSTAN UNILEVER LIMITED (HUL) ........................................................................ ...

Company profile ...................................................................................................................

Mission ................................................................................................................................. 10 11

Principles of the Quality Policy ............................................................................................ 12

Present stature ....................................................................................................................... 12

Divisions ............................................................................................................................... 13

Hindustan Lever network ...................................................................................................... 14

Exports ................................................................................................................................. Water

..................................................................................................................................... 15 15

Corporate Responsibility ....................................................................................................... 16

PRODUCT PROFILE ........................................................................................................... 17

PRODUCT CATEGORY, MARKET SEGMENTATION, TARGET MARKETING AND

POSITIONING………………………………………………………………………………..18

TACTICAL MARKETING TOOLS

Product ................................................................................................................................. 20

Promotion .............................................................................................................................

Price……………………………………………………………………………………............21

20 Place ..................................................................................................................................... 21

INTEGRATED MARKETING COMMUNICATION

……………………………………………………………………………………………………

………………23 PROMOTION…….

……………………………………………………………………………………………………

……………24 PUBLIC RELATIONS

………………………………………………………………….

…………………………………………26 POINT OF PURCHASES ……………………….

…………………………………………………………………………………………27

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ADVERTISEMENTS

……………………………………………………………………………………………………

……………40 PUBLIC RELATIONS

……………………………………………………………………………………………………

………….………40 DISTRIBUTION

……………………………………………………………………………………………………

….………………42 BIBLOGRAPHY

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Executive Summary

Unilever is a multinational consumer product manufacturing giant operating in over hundred

countries all around the globe. Unilever Bangladesh is the Bangladesh chapter of Unilever,

where the company holds 60.75% share whereas the Government of Peoples Republic of

Bangladesh holds 39.25% share. Unilever‘s one of the most popular brand is LUX. They

segments LUX.‘s market according to geographical locations . It further differentiates these

segments into Socio Economic Cluster (SEC) which takes into account the criter ia of education

and profession which ultimately measures the financial ability of consumers. The cluster is

divided into five parts starting from A to E. Unilever targets the urban and sub urban upper

middle class and middle class segment of the population, who falls under A to C of SEC.

Tactical marketing tools, 4P‘s, are extensively used by the company to market LUX. Though

LUX is produced in Bangladesh, Unilever Bangladesh maintains the same standard all around

the globe. The product is available in six different fragrances under three different sizes. Since

the demand for beauty soap market is to a great extent oligopolistic, var iations in price lead to

price war which can eventually break down the company‘s market share. Thus Unilever cannot

provide a better pr ice than its competitors. But the pr ice is affordable by most of the people.

Unilever Bangladesh has outsourced its distribution channels to third party distributors which

allow them to distr ibute LUX in massive bulks amounting to around ten million pieces. It

undertakes the largest promotional activities in the beauty soap industry. The beauty soap

industry has a few major producers of which Unilever holds market share of slightly less than

50%. Other competing br ands like Tibbet, Aromatic and Keya have started to have a strong

consumer base, but LUX.‘s product features distr ibution and promotional activities have

created high brand loyalty for which it is still the market leader. Unilever, with the aid of its

heavy promotional activities, has been able to penetr ate the market. But the other producers in

the industry are posing a threat towar ds Unilever‘s market shar e as they have moved towar ds

the rural masses of the population. Therefore, Unilever Bangladesh should undertake further

steps such as moving towards the rural and/or poorer segment; attract children (by making a

special product for kids) and other innovative promotional activities to retain its command in

the industr y.

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Industry a nalysis

The toilet soaps market is estimated at 530,000 tpa including small imports. The market is

littered over with several, leading national and global brands and a large number of small

brands, which have limited markets. The popular and premium brands include Lifebuoy, Lux,

Cinthol, Lir il, Rexona, and Nirma. Toilet soaps, despite their divergent brands, are not well

differentiated by the consumer s. It is, therefore, not clear if it is the brand loyalty or

experimentation lur ed by high volume media campaign, which sustain them. A consequence is

that the market is fragmented. It is obvious that this must lead to a highly competitive market.

Toilet soap, once only an urban phenomenon, has now penetrated practically all areas including

r emote rur al areas. The incremental demand flows from population increase and rise in usage

norm impacted as it is by a gr eater concern for hygiene. Incr eased sales revenues would also

expand from up gradation of quality or per unit value. As the market is constituted now, it can

be divided into four price segments: premium, popular, discount and economy soaps. Premium

soaps are estimated to have a market volume of about 80,000 tonnes. This translates into a share

of about 14 to 15%. Soaps form the largest pie of the FMCG Market with bathing & toilet soaps

accounting for around 30% of the soap market, by value. Currently, the soap industr y is

divided into three segments namely Premium, Popular and Economy/ Sub popular. To fight

competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer Products Ltd

(GCPL) and Wipro Consumer Care & Lighting are now drawing up fresh game plans. And the

accent is clearly on innovation to gain mind share as well as market share in this overcrowded

category.

Major Players

Hindustan Unilever Ltd . With over seven br ands — LUX, LIFEBUOY, HAMAM, REXONA,

BREEZE, DOVE and PEARS — has 54.3% shar e of the overall soap market. HUL is India's

largest Fast Moving Consumer Goods Company; its journey began 75 years ago, in 1933, when

the company was

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first incorporated. The company stirring the lives of two out of three Indians with over 20

distinct categories in Home & Personal Care Products and Foods & Beverages and also one of

the country's largest exporters. HUL's brands includes Lifebuoy, Lux, Surf Excel, Rin, Wheel,

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

Knorr-Annapurna, Kwality Wall's - are household names across the country. They are

manufactured in over 40 factor ies across India. In the Rs7,000 crore by sales soap mar ket,

HUL‘s mar ket share has dropped to 54.3% in March 2008 from 55.9% in March 2006.

Godrej Consumer Products GCPL, India‘s second largest soap maker after Hindustan Unilever

Ltd, has nearly 9.2% market share. With 11% market share in value terms, it is the second

largest soap maker after Hindustan Unilever. Godrej Consumer Products (GCPL) is a major

player in the Indian FMCG market with leadership in per sonal, hair, household and fabric care

segments. The company is one among the largest marketer of toilet soaps in the country with

leading brands such as CINTHOL, FAIRGLOW, NIKHAR, & ALLCARE. Fairglow brand,

India's first Fairness soap, has cr eated marketing history as one of the most successful

innovations. It is also the pr eferred supplier for contract manufacturing of toilet soaps, some of

which are the most well-known brands in the country.

Wipro In the Indian market, Wipro is a leader in providing I T solutions and services for the

corporate segment in India. Wipro also has a profitable presence in niche market segments of

infrastr ucture engineering, and consumer products & lighting.Wipro has made a large

acquisition in the Consumer Care business. The presence of Wipro in the toilet soap industry

can be seen through their brands such as SANTOOR and CHANDRIKA. With industry leading

organic growth rates and the acquisition, Consumer care business has reached a Revenue run

rate in excess of $100 million per quarter.

Procter & Gamble India Procter & Gamble India (PGHHCL) was incorporated in 1964 after

Procter & Gamble, US, acquired Richardson Vicks, US. Formerly known as Richardson

Hindustan (the Indian subsidiary), it was later named as P&G. It changed its name again in

1998 to Procter & Gamble Hygiene and Health Care in order to reflect the nature and character

of the business of the

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company. During 2004-05 the company has increased its installed capacity of Soaps &

Detergents and Toilet Preparations etc by 36500 Tonnes and 263 Tonnes respectively. With this

expansion the total installed capacity of Soaps & Detergents and Toilet Preparations etc has

increased to 108500 Tonnes and 5875 Tonnes respectively.

Nirma Incorporated as a private limited company, Nirma was converted into a deemed public

company and then to a public limited one in Nov.'93. Nir ma has a leadership presence in

Detergents, Soaps and Personal Care Products. To have a greater control on the quality and

price of its raw mater ials, Nirma undertook backward integration into manufacture of Industrial

Products like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty

Acid, Glycerine and Sulphuric Acid. During 1996-97, Nilnita Chemicals, Nirma Detergents,

Nirma Soaps and Detergents, and Shiva Soaps and Detergents wer e amalgamated with the

company. The company created 'Nirma Consumer Care Ltd.' - a wholly owned subsidiary on

22nd Aug.'97, which is the sole licensee of the brand name 'Nirma' within India. Nirma enjoys a

share of 6.74% in soaps.

ITC ITC, the country‘s largest cigarette maker, entered the segment last year and has made a

strong headway in a short time. Accor ding to AC Nielsen, its share has gr own to 1.75% in just

five months despite the fact that many of its brands such as Super ia, Fiama Di Wills and Vivel

are currently sold in only six states.

Competitor analysis

Internal competitors Lifebuoy: Born: 1895

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External Competitors

Sant oor: Santoor is the flagship brand in the Wipro Consumer Care & Lighting stable and the

2nd largest brand of soap in India in the popular segment of the category. The brand enjoys two

decades of trust since its launch in 1986 and has grown to be counted amongst the top brands in

the Country in an intensively competitive market. Millions of women across the country have

discovered the secret of younger looking skin with Santoor. It is a truly unique soap that

combines the goodness of natural ingredients - Sandal, Turmer ic and natural Skin Softeners.

Sandal provides a cooling and soothing effect that softens skin, while turmer ic controls

formation of skin darkening pigments like melanin, to give skin a radiant glow. Natural Skin

Softeners make skin soft and supple. The end result, skin that is so healthy and beautiful, it lies

about your actual age! Amongst the first brands in the Country to launch an offering with the

twin ingredient benefits of Sandal and Turmeric, Santoor has over the years moved from a

purely natural ingredient based appeal, to one of the most preferred beauty soaps of the day.

Today, Santoor is one of the fastest growing soap brands in India. Santoor is available in three

var iants – Santoor (Sandal & Turmer ic), Santoor White (Sandal & Almond milk) and Santoor

Chandan which is a premium soap manufactured with extracts of Sandalwood oil – a favourite

of discer ning consumers.

Cinthol: Cinthol the popular and much- loved brand of Godrej Consumer Products Limited

(GCPL)have been a favourite of people for many years. All different soaps in its range are

having feel-fresh fragr ance and high TFM index. Cinthol‘s range cover s an economic Lime-

fresh, the medium deo-soaps (spice, lime,cologne and the new ‘sport‘) and a slightly expensive

Cinthol-Original . For decades, Cinthol-Original is one of the best soaps made in India. It had a

simple red- cover which attracts none! But was still able to sustain itself in the market . Godrej

has now launched the improved Cinthol range. Cinthol now offers a deo-range of soaps, talc

and deo-sprays in three exciting fragr ances - Classic, Cologne and Sport in a trendy new

packaging. It also offers Cinthol fresh soap and Cinthol Regular soap with new exciting

packaging. The eye-catching and vibrant packaging symbolizes a sense of adventur e, zest and

action. The new Cinthol range brings 24-Hour Confidence through Active Deo Formula, which

controls body odour, Powerful DryShield that absorbs sweat, UltraScent Technology for long

lasting fragrance and Freshness that revitalises you 24x7.The new range will be available across

the countr y at modern retail and other outlets and will be supported by high- impact adver

tising on television, pr int, out-door, online and radio.

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Vivel and Superia: The Vivel Di Wills r ange is available in two variants. Its unique carton pack

has been developed by ITC's design team to provide a novel consumer experience. Vivel Di

Wills Sheer Radiance is enriched with Olive Oil, to provide skin lustre to make it radiant. Vivel

Di Wills Sheer Crème is enriched with Shea Butter, to moistur ize skin to make it soft and

supple. The Vivel range of soaps is available in four variants:Vivel Young Glow is enriched

with Vitamin E and Fruit Infusions which help in providing youthful glow to the skin. Vivel

Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel beautifully soft.

Vivel Sandal Sparkle is enriched with Sandalwood Oil and Active Clay which helps in

providing clear skin. Vivel Ayurveda Essence is enriched with multiple Ayur vedic Ingredients

which help protect skin from germs and harsh environment, keeping it healthy and beautiful.

In the popular segment, ITC has launched a range of soaps and shampoos under the brand name

Superia. Superia Soaps enriched with natural ingredients give radiant glowing skin. Superia

Soaps are available in four variants : Fragrant Flower: with the fr agrance of Rose & Lavender

Oil Soft Sandal: with the fragrance of Sandal & Almond Oil Natural Glow: with Neem &

Coconut Oils Healthy Glow: with Orange Oil

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Company profile

Hindustan Lever Ltd Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer

Goods (FMCG) company. HLL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &

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

Annapurna, Kwality Wall's ar e household names across the country and span a host of

categories, such as soaps, detergents, personal products, tea, coffee, branded staples, ice cream

and culinary products. These products are manufactured over 40 factories across India and the

associated operations involve over 2,000 suppliers and associates. Hindustan Lever Limited's

distr ibution network compr ises about 4,000 redistribution stockists, cover ing 6.3 million retail

outlets reaching the entire ur ban population, and about 250 million rural consumers. HLL is

also one of India's largest exporters. It has been r ecognised as a Golden Super Star Trading

House by the Government of India. Presently, HLL has over 16,000 employees including over

1,200 managers. Its mission is to "add vitality to life." The Anglo-Dutch company Unilever

owns a majority stake in Hindustan Lever Limited. In the late 19th and ear ly 20th century

Unilever used to export its pr oducts to India. This process began in 1888 with the export of

Sunlight soap, which was followed by Lifebuoy in 1895 and other famous br ands like Pears,

Lux and Vim soon after. In 1931, Unilever set up its first Indian subsidiary, Hindustan

Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and

United Traders Limited (1935). The three companies were merged in November 1956 and the

new entity that came into existence after merger was called as Hindustan Lever Limited. HLL

offer ed 10% of its equity to the Indian public, and it was the first among the foreign

subsidiaries to do so. Currently, Unilever holds 51.55% equity in the company while the rest of

the shareholding is distributed among about 380,000 individual shareholders and financial

institutions. Brooke Bond entered I ndian market in 1900 and in 1903 it launched Red Label tea

in the country. In 1912, Brooke Bond & Co. India Limited was formed. Unilever acquired

Brooke Bond through an international acquisition. Similarly, Lipton's link with India date back

to 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was

incorporated. Pond's (India) had been in I ndian market since 1947. It joined the Unilever ranks

thr ough an international acquisition of Chesebr ough Pond's USA in 1986. The liber alization

of Indian economy in 1991 and subsequent removal of the r egulatory framework allowed HLL

to explore every single pr oduct and opportunity segment, without any constr aints on

production capacity. The 1990s witnessed a string of crucial mergers, acquisitions and

alliances. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant

interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the

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Dollops Ice-cream business from Cadbur y India. In one of the most talked about events of

India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL,

effective from April 1, 1993. In July 1993, Brooke Bond India and Lipton India merged to form

Brooke Bond Lipton India Limited (BBLIL) . Brooke Bond Lipton India Limited launched

Wall's range of Frozen Desserts in 1994 and by the end of the year, HLL entered into a

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strategic alliance with the Kwality Icecream Group families. BBLIL merged with HLL, with

effect from Januar y 1, 1996. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited

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

Products both for the domestic market and exports to India. In Januar y 2000, as part of its

divestment strategy, the government decided to award 74 per cent equity in Modern Foods to

HLL. I n 2002, HLL acquired the government's remaining stake in Modern Foods. In Februar y

2007, the company has been renamed to "Hindustan Unilever Limited" to strike the optimum

balance between maintaining the her itage of the Company and the future benefits and synergies

of global alignment with the corporate name of "Unilever".

Mission

Unilever's mission is to add Vitality to life. They meet everyday needs for nutrition, hygiene

and personal care with brands that help people feel good, look good and get more out of

life.Their deep roots in local cultures and mar kets around the world give them strong

relationship with consumer s and are the foundation for their future growth . A key requirement

is building in the quality expectations of their consumers into their products. To win

consumers‘ confidence and loyalty, they need to consistently deliver br anded pr oducts of

excellent quality. The Quality Policy descr ibes the principles that everyone in Unilever

follows, wherever they are in the world, to ensure that they are recognised and trusted for their

integrity, the quality of their brands and products, and the high standards they set.

Principles Policy

of

the

Quality

• Putting the safety of their products and consumers first. HUL has stringent mandatory quality

sta ndards in place against whic h compliance is verified through audits and self assessments.

These standards ensure they design, manufacture and supply regular products safe, of excellent

quality, and conform to the releva nt industry and regulatory standards in that are the countries

in which they operate. • They actively engage consumers and customers, translating their needs

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and requirements into products and services, thus creating consumer value wherever they

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• Quality is a shared responsibility Quality and consumer safety is the responsibility of every

Unilever employee and Unilever demonstrates visible and consistent leadership to meet this

policy. The drive for quality, in all that they do, is a passion in their brand development,

manufacturing and customer service reflected processes.

Present stature

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods compa ny,

touching of two out of three Indians with over 20 distinct categories in Home & Personal Care

the lives Products & Beverages. They endow the company with a scale of combined volumes of

about 4 and Foods million and sales of nearly Rs.13718 tonnes crores. HUL is also one of the

country's largest exporters; it has been recognised as a Golden Super Star Trading by the G

overnment of House India. The mission that inspires HUL's over 15,000 employees, including

over 1,300 managers, is to "add to life." HUL meets everyday needs for nutrition, hygiene, and

persona l care with brands that vitality help feel good, look good and get more out of life. It is a

mission HUL shares with its parent people company, which holds 52.10% of the equity. The

rest of the shareholding is distributed among Unilever, 360,675 individua l shareholders and

financia l institutions. HUL's brands- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &

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

Annapurna, Kwality Wall's – are household na mes across the country and span many

categories - soaps, detergents, personal products, tea, coffee, staples, ice cream and culinary

products. They are manufactured over 40 factories across branded India. The operations involve

over 2,000 suppliers and associates. HUL's distribution network, comprising about

redistribution stockists, covering 6.3 million reta il outlets reaching the entire urban population,

4,000 and about 250 million rural consumers. HUL has traditionally been a company, which inc

orporates latest technology in all its operations. The Hindustan Unilever Research Centre

(HURC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HURC and the

Global Technology Centres in India have over 200 highly qualified scientists and technologists,

many with post-doctoral experience acquir ed in the US and Europe. Group operates through

seven segments: Soa ps and Detergents, Personal Products, Exports, Beverages, Crea ms and

Other. The products include home and personal care products, foods a Foods, Ice nd beverages,

industrial and agricultural products. Home and personal care products consists of personal and

wash, household, oral care, skin a nd hair care, deodorants, perfumery, colour cosmetics and

fabric baby Foods and beverages includes tea, coffee, cooking fats and oils, bakery fats, ice crea

ms, care. tomato products, fruit and vegetable products, rice, salt, atta and rawa, marine

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products and mushrooms. agricultural products includes specialty chemicals, bulk chemica ls,

fertilisers, anima l Industrial and feeds, 12 | P a g e

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seeds, plant growth nutrients, processed-tri-glycerides and agri commodities, yeast, lea ther,

footwear and carpets, thermometers and plantations. Its brands are spread across 20 consumer

product categories. Hindustan Unilever markets consumer goods throughout India. The

company fa ces competition from international, local and regional players. The company

derives 44.3% of its revenues from soaps and detergents, 26.6% from personal care products,

10.5% from beverages, and the rest from foods, ice creams, exports, and other products. As

counterfeit trade increases, the company stands to lose on its brand equity and exclusivity. New

Products introduced by HUL in recent years: Lux stra wberry and cream Clinic plus multi

sachet Ponds age miracle shock Axe and recoverpop Paddle Wheel active Green

Divisions

Home and Personal Care The HPC business is made up of Fabric Wash, Household Care,

Personal Wash and Personal Care categories . Personal : Lux, Lifebuoy, Liril, Hamam, Breeze,

Dove, Pears, Wash Rexona Laundry: Surf excel, Rin, Wheel Skin care: Fair and Lovely, Ponds,

Vaseline, Avia ncePepsodent, Close Oral : care up Deodorants: Axe, Rexona Colour : Lakme

cosmetics personal and health : Ayush Ayurvedic care

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Foods

The Foods Division of your Company comprises Beverages, Processed Foods, Ice-Creams and

Modern Foods businesses. The Division recorded strong growth in 2007. Tea: Brooke Bond,

Lipton Coffee: Bru Foods: Kissan, Annapurna, Knorr Ice cream: Kwality walls

Hindustan network

Lever

Started in 2003, Hindustan Unilever Network (HUN) is HUL's Direct Selling arm. It is a

multicategor y direct selling business offering a wide range of high- quality, high-performance

products for its consumers and also exciting business and personal development opportunities

for its consultants. It alr eady has about 7 lakh consultants - all independent entrepreneurs,

trained and guided by HUN's expert managers and trainers. HUN‘s mission is to a create

millionaire club in India. There are many consultants who are earning at over a rate of

Rs.1,00,000 per annum. Several consultants earn over Rs.50,000 per month. HUN offers to

build a business with different categories of Home & Personal Care (HPC) and Food products.

They are all essential household needs. And they are all exclusive to HUN, specif ically

developed for the Direct Selling channel, and not available in the retail channel. HUN has

already spread to 1500 towns and cities, backed by 28 offices and over 130 service centres

across the country. HUN's vision is to earn the love and respect of India by making a real

difference to the lives of million Indians.

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Exports

Today, HUL is one of I ndia‘s Largest exporters of branded Fast Moving Consumer Goods. It

has been r ecognized by the Government of India as a Golden Super Star Trading House. Over

time HUL has developed into a viable & competitive sour cing base for Unilever world wide in

Home and Personal Care & Foods & Beverages categor y of pr oducts. HUL is also a global

marketing ar m for select licensed Unilever brands and also works on building categories with

core country advantage such as branded basmati rice.

HUL Exports offers high level of service with flexibility and responsiveness thorough out the

supply chain. It has a dedicated organization structure to support this endeavour and this has

helped in growth of these businesses in particular. Intrinsic cost competitiveness in the end to

end Supply chain with appropriate technology and competitive capital investment operations

while delivering best in class quality enables HUL to position itself as a key sourcing hub for

Unilever and also become a prefer red partner for Global customers in categories we oper ate.

HUL‘s key focus in the exports business is on two broad categor ies. It is a sourcing base for

Unilever brands in Home & Personal Care (HPC) and Food and Beverages ( F&B) for supplies

to other Unilever companies. It also focuses on becoming a preferred supplier to both non-

Unilever and Unilever clients in three categories in which India, as a country, has competitive

advant age – Branded Rice, Marine Products and Castor and its Der ivatives . HUL enjoys

international recognition within Unilever and outside for its quality, reliability and speed of

customer service. HUL's Exports geography compr ises, at present, countr ies in Europe, Asia,

Middle East, Africa, Australia, North America etc

Water Pureit, a breakthrough offer ing of Hindustan Unilever (HUL) , comes with many unique

benefits – complete protection from all water -borne diseases, unmatched convenience and

affordability. Pureit‘s unique Germkill Battery technology kills all harmful viruses and bacter ia

and removes parasites and pesticide impurities, giving you water that is =as safe as boiled‘. It

assures your family 100% protection from water-borne diseases like jaundice, diarrhea, typhoid

and choler a. Pureit not only renders water micro-biologically safe, but also makes the water

clear, odourless and good-tasting.

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Corporate Responsibility As in the earlier years, your Company continued to involve itself in

social welfare initiatives across the Country, both through charity and social investment around

issues like education, health, nutrition and initiatives for the economic upliftment of the

underprivileged. The company has commenced a pilot in its tea business, in partnership with an

NGO (Partners in Change) to source tea directly from small producers and thereby impr ove

their livelihood. The effort of the Company in improving water availability thr ough soil

conservation and water harvesting methods has borne good results. Company believes that

brands must be at the forefront of dr iving social change. HUL is also running a rur al health

programme – Lifebuoy Swasthya Chetana. The programme endeavours to induce adoption of

hygienic practices among rur al I ndians and aims to bring down the incidence of diarrhoea. It

has alr eady touched 84.6 million people in approximately 43890 villages of 8 states. The vision

is to make a billion Indians feel safe and secure.

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PRODUCT PROFILE:

Lux soap was first launched in 1916 as laundry soap targeted specifically at 'delicates'. Lever

Brothers encouraged women to home launder their clothes without fear of satins and silks being

turned yellow by har sh lyes that were often used in soaps at the time. The flake-type soap

allowed the manufactur er some leeway from lye because it did not need to be shaped into

traditional cake-shaped loaves as other soaps were. The result was a gentler soap that dissolved

more readily and was advertised as suitable for home laundr y use. Lux toilet soap was

introduced in 1925 as bathroom soap. The name 'Lux' was chosen as a play on the wor d "luxur

y." Lux has been marketed in several forms, including bar and flake and liquid (hand wash,

shower gel and cream bath soap). Lux in step with the changing trends and evolving beauty

needs of the consumers, offers an exciting range of soaps and Body Washes with unique

elements to make bathing time more pleasur able. One can choose from a r ange of skincare

benefits like firming, fairness and moisturising. Lux stands for the promise of beauty and

glamour as one of India's most tr usted personal care brands. Since its launch in I ndia in the

year 1929, Lux has offered a range of soaps in different colours and world class fragrances. Lux

is a beauty soap of film stars. Lux recognized the need for a compelling message about beauty

that would resonate with women of today. From the 1930s right through to the 1970s, Lux soap

colours and packaging were altered several times to reflect fashion trends. In 1958 five colours

made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap

with their bathroom colours. In the early 1990s, Lux responded to the growing trend away from

traditional soap bars by launching its own range of shower gels, liquid soaps and moisturizing

bars. Lux beauty facial wash, Lux beauty bath and Lux beauty shower were launched in 1992.

In 2004, the entire Lux range was re- launched in the UK to include five shower gels, three bath

products and two new soap bars. 2005 saw the launch of three exciting new var iants with

dreamy names such as Wine & Roses bath cream, Glowing Touch and Sparkling Morning

shower gels.

Lux has recently launched its two fruit extract variants – New Lux Strawberry & Cream and

Lux Peach & Cream contain a blend of succulent fr uits & luscious Chantilly cream. The most

recent addition in the brand is Lux Crystal Shine.

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Product Category, Market Segmentation, Target Marketing and Positioning

This section descr ibes the category of the selected product. The chapter is organized into four

sections. Section 1 states under which category the product falls. Section 2 describes how

Unilever Bangladesh Ltd. differentiates the population and categor izes them into different

segments. Section 3 analyzes which segment the company targets and why they target that

specif ic segment. Finally section 4 describes the process through which the company tr ies to

capture a place in the buyers mind i.e. the product positioning method.

Product Categ ory :

LUX falls under the category of toiletry product as a beauty soap.

Market Segmentation:

The company claims that LUX is the highest selling beauty soap in Bangladesh. Moreover

some survey reports also reveal the same result. Though LUX is the highest selling beauty soap

in Bangladesh, it does not go for traditional mass marketing. Mor eover as a beauty soap LUX

does not even segment its market according to gender. Shows that Unilever Bangladesh Ltd.

segments their market according to geographical areas. The population of the country is

segmented into three parts which are urban, sub urban and rural area consumer s.

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Target Market:

LUX is not a highly expensive but an affordable product. That is why the company targets

urban and sub urban upper middle and middle class people who are the second highest

population of segment of the country. From the segmentation of customer according to SEC

they target categor y A, B and C, because they are assumed to be financially well-off and can

afford to buy LUX.

Product tioning:

Posi

Unilever Bangladesh Ltd obtained a good position in the buyers‘ mind through better product

attributes, price and quality, offering the product in a different way than the competitors do. The

company offers improved quality of products in the industry at an affordable pr ice with high

branding, which ultimately helps to position the product in the buyers‘ mind as the best quality

beauty soap. The market share of the company in the beauty soap industry is somewhere around

43%.Since in the beauty soap industry all products are of same price Unilever cannot provide

its consumers with better price but it is in a great position in reference with its packaging,

fragrances and product designing.

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Tactical Marketing Tools

This chapter describes the way Unilever Bangladesh Ltd. use the tactical marketing tools for

marketing LUX in Bangladesh. The chapter comprises of four sections. This section includes a

table that shows the location of the company‘s warehouses all ar ound the country. Finally

section 3.4 discusses the promotional activities that the company undertakes for LUX.

Product: LUX is an internationally renowned beauty soap brand of Unilever. Though

manufactured in Bangladesh for the local mar ket by Unilever Bangladesh Ltd, as an

international brand, it maintains an international quality for the product. Formula given by

Research and Development departments in foreign countries, LUX is produced in Bangladesh

from imported raw mater ials like sodium soap, glycerol and different extracts accor ding to

flavor s, coming fr om Unilever plants situated abroad. LUX is offered in Bangladesh in six

different flavors which are: LUX Energizing Honey, LUX Golden Glow, LUX Nature Pure,

LUX Orchid Touch, LUX Almond Delight and LUX Aqua Sparkle. Taking into account the

convenience of its customer s, the company manufactures all flavors of LUX in thr ee different

sizes, 40gm, 80gm and 120gm.

Price: Though Unilever Bangladesh gives its LUX customers a lot in terms of the pr oduct

itself, it cannot provide a better pricing. This is due to some constraints in the beauty soap

industry. Beauty soap is a product with a vulnerable demand in Bangladesh. A change in pr ice

has a high risk of creating pr ice war among the rivals which will eventually cause a loss of

profit. Its prices are almost equal to its competitor. Lux‘s price with its major competitor .

Company carries out research on competitors‘ price and brand loyalty when it feels extreme

necessaity of chaging price. The brand loyalty test is an exploratory research which is known as

Brand Health CheckUp (BHCU).

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Place: Unilever Bangladesh Ltd. has a huge distribution channel for LUX all over the country

as its sales reach more than 10 million pieces a year. The company has six huge warehouses,

one in each division of Bangladesh, where the product goes after they ar e manufactured at

Kalurghat factory. The company does not use its own fleet of transport for distributing its

product. However, it has outsourced its distribution process to various thir d party distr ibutors,

exclusively dedicated to Unilever Bangladesh Ltd. These distributor s then supply the product

all over Bangladesh to a huge number of retailers. Even though LUX targets the urban and sub

ur ban middle and upper middle class people they ar e distributing their products all over

Bangladesh because of a recent increase in demand of its product to all segments of the

population.

Promotion: Unilever Bangladesh undertakes huge promotional activities to promote LUX

which has topped the beauty soap industry of Bangladesh. It spends almost 20% to 25% of its

Net Proceeds from Sales (NPC) of LUX for promotional activities for LUX 1 It‘s certain annual

promotional campaigns like LUX Channel i Superstar and LUX Channel i Annual Cinema

Awar ds has made the product a part of the glamour world. Since the 1930s, over 400 of the

world‘s most stunning and sensuous women have been proudly associated with Lux

advertisements. They do not only promote LUX in Bangladesh for the beauty conscious

females, it also promotes the brand for males and the company proved that, by including world

famous male celebr ity Shahrukh Khan for their advertising campaign. Unilever Bangladesh

Ltd spends a huge amount of money for promoting LUX through TV commercials, newspaper

advertisements and billboards. Moreover it also undertakes small promotional campaigns at

different schools, colleges, universities and recreational parks with winners of its Zonal Beauty

Contests. Till now promotional activities of LUX has always been successful which has made it

a household common name and helped it reach almost one billion taka sale value in the year

2004 2.

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The Market for LUX For better comprehension of Unilever Pakistan, its marketing str ategy, pr

oduct quality, positioning and placement, we present here a comparative analysis of its

competitors. This part of the project illustrates the market share of differ ent companies in the

beauty soap industry.

Market Share: The beauty soap industry in Pakistan consists of only seven major producers.

Unilever Pakistan Ltd is operating in the industry with its world famous brand LUX. Out of

these giant companies Unilever Pakistan Ltd is the market leader with a share of around 43%.

Other companies in the industry are not as big as Unilever Pakistan Ltd but they are posing

threat to the company by a tendency of a gradual increase in their market share. Kohinoor

Chemicals which is operating with the brand name Tibet is an extremely famous brand to the

rural segment of the population and possess a significant share in that segment which is the

largest population group in Pakistan. Moreover Keya Cosmetics Ltd oper ating with the brand

name Keya and Marks & Allys Ltd operating with the brand name Aromatic are also uprising

brands to both the rural and sub ur ban segment of the population. Moreover a recent takeover

of Aromatic by multinational consumer product giant MARICO who operates with famous

brands in other industries like Parachute Coconut Oil is posing to be a threat to Unilever

Pakistan‘s market share.

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Integrated Marketing Communication

Promotio n

The great Indian brand wagon started nearly four decades ago. Great brands sometimes outlast

their ambassador s as proven by Lux which celebrated its 75th anniversary in India. The first

ambassador, Leela Chitnis featured in a Lux advertisement which flagged off the Lux wagon.

She gave way to a galaxy of stars which includes Madhubala, Nargis, Meena Kumar i, Mala

Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema Malini, Zeenat Amaan, Juhi

Chawla, Madhuri Dixit, Sridevi, Aishwar ya Rai and Kareena Kapoor. The last frontier for

most actors aspir ing to stardom is becoming a Lux ambassador. The brand has outlasted many

soaps. From the beginning, Lux became a household name across the country.

Sales Promotion Sales promotion, a key ingredient in marketing campaigns, consists of a

collection of incentive tools, mostly shor t term, designed to stimulate quicker or greater

purchase of particular products or services by consumers or the trade.Whereas advertising

offers a reason to buy, sales promotion offers an incentive to buy.

Prominent Sales Promotion Schemes Used By LUX Lux presented 30 gm gold each to the first

three winner s of the Lux Gold Star offer from Delhi. According to the promotional offer that

Lux unveiled in October 2000, a consumer finding a 22-carat gold coin in his or her soap bar

got an opportunity to win an additional 30 gm gold. The first 10 callers every week got a 30 gm

gold each. The offer could be availed only on 100 gm and 150 gm packs of Lux soap. Lux Star

Bano, Aish Karo contest: All one needed to do was buy a special promotional pack of Lux

soap. The pack comes with a special scratch car d. The 50 lucky winners and their spouses were

flown down to Mumbai to live a day like Aishwarya Rai would. They could also be given gift

vouchers worth Rs 50,000 from Shoppers' Stop along with an exclusively designed Neeta Lulla

sari and a beauty makeover by Michelle Tung, Aishwarya's preferr ed designer and stylist. The

pièce de résistance was a dinner date with Aishwarya Rai herself.

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Lux celebrated 75 years of stardom with the Har Star Lucky Star activity. All wrappers of Lux

had a star printed inside them. I f the consumer found written inside the star, any number from

1 to 5 , she would get an equivalent discount (in rupees) on her purchase from her shopkeeper.

If the consumer found 75 years written inside the star, she will get a year‘s supply of Lux free.

Online contests: Example:

Please enter your name and email to play the game.

Play the supercharged version of the hit puzzle game, Bejeweled. Create rows of 3 or more

identical stones and you could win a trip for two to a five-star Resort in Goa.

Public Relations:

Not only must the company relate constructively to customers, suppliers and dealers, it must

also relate to a large number of interested publics. A public is any group that has an actual or

potential interest in or impact on a company‘s ability to achieve its objectives. PR involves a

variety of programs designed to promote or protect a company‘s image or its individual

products.

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LUX PR Activities Press relations: Lux has been maintaining constant communicating with its

customers and potential customers, of the var ious developments taking place in the brand by

using pr ess relations. Events: Lux celebrated 75 years of existence in a grand way by unveiling

Shahrukh Khan as their latest brand ambassador. Kareena Kapoor, Juhi Chawla, Sr idevi and

Hema Malini graced the event and made it special. All the stars have endorsed Lux in the past.

The event was held at the grand Intercontinental in Mumbai.

Limit ed edition: Coming up with limited edition of the brand is also a way of attracting

attention towards the brand. It creates a buzz and a feeling of ur gency to tr y out the product

and helps in promotion of the brand. This strategy was also implemented by Lux by br inging

out limited editions like Chocolate Seduction, Aromatic Glow, Festive Glow and Haute Pink.

Logo

Labelling The LUX Tr ade Character or Logo is present prominently on the package. A novel

metallic substrate packaging showcases the ingredients, and a female model is shown on the

pack. Also displayed graphically are the key ingr edients.

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Packaging The colors are differ ent for different variants such as saffron for the saffron var iant,

pink for the rose extracts etc.The Bars come in package sizes of 100g, 120g, 150 g

Lux has also launched a 45 g var iant called Mini Lux priced at Rs. 5.

Point of Purchases: The LUX is not given a notable placement on the shelves of dif ferent retail

shops & departmental stores for its sales promotion. Usually the company goes for wide display

in the stores where it potential for its product. Different eye-catching decorations are made

inside the store and in the showcase for outside display. These arrangements are made with the

assistance of the sales people of the company.

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Advertisements :

The message that the product reflects in its adver tisements is the one that is usually narrated by

the corporate itself. Advertising is any paid for m of non-personal presentation and promotion

of ideas, goods and services by an identified sponsor. Ads can be a cost effective way to

disseminate messages, whether to build a br and preference or to educate people.

LUX ADVERTISEMENTS THROUGH THE AGES

Leela Chitnis in the first Lux print adverstisement featuring an indian actress

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Aishwar ya Rai in a pr int advertisement featuring Lux inter national

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Priyanka Chopra in the latest Lux 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 REFERENCE 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. Popular ly known as the beauty soap of film stars, Lux has been an

intimate partner of the brightest stars on the silver screen for

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decades. An ode to their beauty, an announcer of their stardom, advertising campaigns on Lux

have featured film stars across the nation, promising their beauty and complexion to ordinar y

women.

With top movie stars– from Madhubala to Madhur i, from Babita to Karisma and Kareena

having endor sed 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 the consumers‘

aspir ations of using beauty soaps via the rationale =if it‘s good enough for a film star, it‘s good

for me. This later moved into a transformation role of having a bath with Lux, which transports

the user into a fantasy world of icons, film stars and fairy lands.

Change in communica tion stra tegy

However, the communication was slowly seen to be losing relevance, as consumers were

beginning to question if the film star actually used the brand. In addition to this, several

competitive beauty soap brands had begun advertising using similar methods 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 the brand away

from the long-running film star route. The film star still features in the new communication but

not as her gorgeous self but rather as an alter ego/projection of the protagonist (a regular gir l),

for a few seconds of the entire ad. Thus, for the fir st time the film star was used as a

communication device and not as the main feature of the ad. The move away from the film star

and her fantasy wor ld to a regular Lux user, with the focus on the protagonist‘s star quality, is a

change from the norms set by Lux advertising in the past. With the new communication

strategy, the film star is used purely as a communication device to portray star quality in ever y

Lux user. This can be significantly seen in the latest TV commercial of Lux Crystal Shine

where Priyanka Chopra is portrayed as a normal woman.

This idea – bring out the star in you – puts the consumer at the heart of the brands‘ promise.

This promise goes beyond the functional deliverables of soap, beyond bathing and the

bathroom to the

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world outside. It‘s a world where with Lux on her side, an ordinary woman can impact her

world with her own star quality.

This is a successful attempt to bring the brand closer to its users and to give it a more youthful

and contemporary image.

Breaking away from tradition, HLL resorts to a male and metr o sexual Shah Rukh to revive

Lux, which turned 75 in 2005.

Selection of Media: Ther e are number of Sources available for passing the product message.

These are as follows; Television Outdoor (Billboards) Magazines Newspapers Brochures

Internet

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Impact on Sales: The company believes that ads do have adequate impact on sales. In order to

meet the company policy of maintaining and strengthening the corporate image, the ads are

shown on television. Ther e is a long-term strategy in the books of Unilever to disturb the loose

Soap market. They usually show documentar y from time to time regarding the flaws in loose

Soap quality. It is usually shown without any discrimination, i.e., without mentioning any Soap

name or company name in the documentary.

Celebrity endorsements

Hollywood Since the 1930s, many well-known Hollywood actresses have marketed the soap to

women as a beauty enhancer . Advertisements have featured Dorothy Lamour, Joan Crawford,

Laurette Luez, Judy Gar land, Cher yl Ladd, Jennifer Lopez, Elizabeth Taylor, Demi Moore,

Sarah Jessica Parker, Cather ine Zeta-Jones, Rachel Weisz, Anne Hathaway, and Marilyn

Monroe, among others. The first male to star in a Lux advertisement was Hollywood actor Paul

Newman

Bollywood Today, the br and is still heavily adver tised in India using Bollywood star s.[2]

Madhubala, Mala Sinha, Hema Malini, Sridevi, Madhur i Dixit, Juhi Chawla, Karisma Kapoor,

Rani Mukerji, Aishwar ya Rai, Amisha Patel, Kareena Kapoor and Tabu have all been past br

and ambassadors.[citation Pr iyanka Chopra is the present brand ambassador of Lux. In India

needed] Shahrukh Khan was the first male in a Lux advertisement

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Pakistan Lux has been widely advertised in Pakistan ever since the br and was introduced.

Pakistani models including Reema Khan, Meera, Aaminah Haq, Babra sharif and var ious other

leading models and actresses have been "Lux models" from time to time. Lux remains the

leading soap brand in Pakistan, representing the stylish class of Pakistan. Things started with a

TV show called Lux Style Ki Duniya, now with the country's leading models and actors taking

part in the annual Lux Style Awards every year . Ali Zafar the famous Pakistani Singer has

become the first male model for Lux.

Other countries Lux soap is ver y popular in Nepal and the brand appointed Nepali model-

turned- actress Jharana Bajracharya to be the Lux Girl in the Summer of 2003. After that, she

appear ed on many TV commercials. Nigerian actress Genevieve Nnaji appeared as the face of

Lux soap in 2004. Two decades earlier, singer Patti Boulaye had been Nigeria's face of Lux. In

Norway dur ing the 1950s and 1960s, Lux advertisements featured fictional Italian actresses.

Lux soap is also a category leader in Pakistan, the br and being synonymous with glamour.

While initially it was also marketed as the beauty soap of the film stars, recently it is focusing

more on bringing out the star in ordinary people. Current brand ambassador is Iman Ali.

Soap operas Lux soap was known for sponsor ing several popular radio ser ies in the 1930s and

1940s including Lux Radio Theater that was hosted and directed by Cecil B. DeMille and the

Life and Love of Dr. Susan an ear ly soap oper a. This radio sponsorship made the brand fairly

well-known in the United States while the shows were produced, though the soap has since

disappeared from mainstream American markets and is no longer the recognized brand it once

was. Many Hollywood stars were lur ed to appear on Lux Radio Theatre not only due to its high

quality, but that the actors and actresses received monetary payment instead of free samples of

the product. From 1950 to 1959, Lux sponsored Lux Video Theatre and Lux Playhouse on

television.

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Public Relations:

In order to build healthy relations with the consumers, the company has established a consumer

department to manage the complaints of the end-users. A legal department is also dealing with

the legal issues and media war. If any news is published in a newspaper that harms the product

image, a persuasive message is published in that newspaper to counter the rumor.

Sponsoring Events: The company goes for sponsoring events in order to heighten the company

and brand image. Mostly the company goes for financing such kind of events in which its

product has got some room to build likeness. The company also goes for sponsoring fashion

shows in different cities.

Distribut ion: LUX goes for indirect channel of distribution. The hierarchy of the distribution

channel is as follows. Manufacturer Distributor Retailer Consumer

The distribution str ategy pursued by the Unilever is intensive. It means that the product distr

ibution is covering wide market. There are regional headquarters of the company in all the big

cities of the country. There is a distributor in each big city. I n order to reach remote areas, a

distr ibutor engages a sub-distr ibutor for a small area. The company is directly linked with the

main distr ibutor and the sub- distributor has no such direct contact with the company. The

company provides the Life Buoy inventory to the main distributor that is further dispatched to

retailers and sub-distributors. Ther e is a regional manager of Unilever that employs Ar ea Sales

Manager for a specific area then comes the Territory Sales Officer (TSO). TSO is directly

linked with the distributors to set and achieve targets. The targets var y from area to area and

are set on the basis of history of the area sales. As the sales targets depend upon the area histor

y of sales; these are usually

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achievable. If these tar gets are facing some kind of setback, the promotional schemes based on

areas are announced as discussed ear lier.

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BIBLOGRAPHY:

Advertising and Promotion – George E Belch & Michael A Belch

www.hul.co.in/brands/lux.asp www.lux.com www.wikipedia.org

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