marketing plan of lux

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Marketinglan of Lux


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Term paper on

Marketing Plan of Lux.

Submitted by

Name ID

Md. Shahinul Islam 102011032

Md. Tasrif- Ur- Rahman 102011114

Dilruba Yeasmen 102011171

Sanjida Begum 102011183

Shaila Ferdous 102011197

Submitted To

Course instructor: Mohammad Sakhawat H Bhuiyan

Course code: Bus-314

Sec-03

Date of Submission: 1st

August, 2012.


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Acknowledgement

At first, we would like to thank the almighty Allah for his grace in accomplishing our term paper

timely. Our course teacher Mohammad Sakhawat H Bhuiyan played the vital role by providing

us the guidelines of preparing this term paper and presentation. We express our profound

indebtedness and gratitude to him for his valuable advice that helped immensely in preparing this

term paper.

By providing us the opportunity of preparing this term paper, he has enabled us to relate the

academic knowledge of marketing management with the practical scenario. We would also like

to thank Faisal Ahmed for his help. Our special thanks go to our parents, sister for their

encouragement.


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1st

August, 2012

Mohammad Sakhawat H Bhuiyan

Department of USB

University of Liberal Arts Bangladesh

Dear Sir

Subject: Request for accepting our term paper.

We are requesting you to accept our term paper on marketing plan of Lux. We prepared this term

paper in consideration of your all instruction.

We tried our best to present this term paper in a manner which you taught us in the class. While

we started to prepare this term paper the knowledge of Marketing Management helps us a lot. In

this term paper we tried to make a proper marketing plan of Lux.

Sir, if you have any confusion or any question regarding this term paper please contact at the

following mobile number or Emil.

Mobile No: 01721658714, E-mail address: [email protected].

Sincerely,

Md. Shahinul Islam 102011032

Md. Tasrif- Ur- Rahman 102011114

Dilruba Yeasmen 102011171

Sanjida Begum 102011183

Shaila Ferdous 102011197


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Table of contents

Chapter Title Page No

Executive Summary Vii

1 Introduction 1

1.1 Unilever at a glance 11.2 Objectives of the report 1

1.3 Scope of the study 1

1.4 Methodology of the study 2

1.5 Limitations of the study 2

2 The company 2

2.1 History of the company 2

2.2 Mission of the company 3

2.3 Vision of the company 3

2.4 Service offering 4

3 About product 5

3.1 Product introduction 53.2 Product category 5

3.3 Product types 5

3.4 Corporate connection of

marketing plan 7

4 Environment analyzing &

forecasting 7

4.1 Internal environment 7

4.2 External environment 7

4.3 Competitive analysis 9

4.5 Market trend & potential 9

4.6 SWOT analysis of lux 9

5 Segmentation & targeting 10

6 Objectives of Lux 12

7 Marketing Strategies 12

7.1 Marketing position of Lux 13

7.2 Product management of

Lux

13


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7.3 Pricing 14

7.4 Distribution 14

7.5 Marketing communication 15

8 Action programmes 16

9 Financial projection 17

10 Implementation control 19

11 Conclusion 20

12 Bibliographies 21


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Executive summary

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

countries all around the world. Unilevers one of the most popular brand is LUX. And lux

fulfills the corporate connection of Unilever. Unilever follows the government rules &

regulations & lux is sold according to the socio-culture of our country. Lux is segmented

according to the geographical locations of our country. Targeted customers are the urban and sub

urban upper middle class and middle class people. There are other competitor of lux but among

of them luxs market share is high. Market trends & market potential is satisfactory of lux. And

the main objective of lux is to satisfy the customer. Lux marketing strategies is good. Lux

positioning strategy, product development, pricing, distribution, marketing communication or

promotion activities is done nicely. So lux position is high, product is best, price is affordable &

promotional activities are really very good than others. So day by day lux is creating a special

image in the customers mind & they are capturing the market in a large number. The total

marketing plan will be implemented by different departments. And the financial projection of lux

is good now. Because it is now on maturity stage. But at the last stage of maturity their total sells

will be equal to total profit. And that will be their breakeven point. Now the sales of lux are

really very good. So the profit is high. But after the maturity stage this product may be destroyed

or this product may be re-launched again in a new feather according to the customers demand.

Though Unilever companies strategy is good but Unilever Bangladesh should undertake further

steps such as- moving towards the rural and poorer segment, attract children by making a special

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

industry.


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1) Introduction

1.1) Unilever At a glance:

Unilever is one of the worlds largest and leading multinational companies; Unilever commencedtheir business activities on a larger scale by setting up their first factory in Netherlands, in the

year of 1872. Operating in Bangladesh for over the last four decades the company is trying to

significantly contribute towards the augmentation of the standard of living by bringing world

class high quality products at the door step of their customers. Unilever Bangladesh Limited, a

fast moving consumer goods company, engages in the manufacture and distribution of home care

products, personal care products, and foods. The company was formerly known as Lever

Brothers Bangladesh Ltd. and changed its name in December 2004. Unilever Bangladesh

Limited was founded in 1964 and is based in Dhaka, Bangladesh. Unilever Bangladesh Limited

is a subsidiary of The Unilever Group. The usage of Unilever products by over 90% of the

people in Bangladesh stands a testimony to their successful operation. . Their array of productsshow that they produce household care, fabric cleaning, skin cleansing, skin care, oral care, hair

care, personal grooming, and tea based beverage products under worldwide famous brand names

Wheel, LUX, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Lipton, Lipton Taaza,

Pepsodent, All Clear, Vim,Surf Excel, and Rexona.

1.2) Objective of this report:

This report is an outcome of an analysis of marketing Plan used by Unilever Bangladesh Ltd.

The main purpose of the report is to find the planning what the company uses to market its world

famous beauty soap, LUX, in Bangladesh. The positive and negative aspects of those strategies.

The report further analyzes the position of Unilever Bangladesh Ltd. in the toiletry industry in

comparison to its competitors. The report discusses the corporate connection, process of using

market segmentation, target marketing, the product, pricing, promotional and distribution

strategies and a competitive analysis action activities and implementation control.

1.3) Scope of the study:

The geographical scope of the study was restricted to the Bangladesh due to time and resource

constraints. The study is being exploratory in nature.


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1.4) Methodology of the study:

For accessibility and availability of information we have chosen to work on the marketing plan

of Unilever Bangladesh Ltd. As the company operates in the market with a huge number of

products in different industries, we have decided to focus on one of their world wide successful

brands, LUX. Most of the information used in this report is from secondary sources. The mainsource of information was the focus group discussion. In addition information was also collected

from websites.

1.5) Limitations of the study:

Every attempt will be taken to obtain the meaningful & error free result but as nothing in this

world is 100% perfect. We believe that there will still the chances for error because of the

following limitations-

Their product website is not updated.

As the research was groping in nature, it was not possible to study the accurate

phenomenon of the fact.

The knowledge of report writing is limited.

2) The Company

2.1) History of the Company:

In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight

Soaphis revolutionary new product that helped popularize cleanliness and hygiene in VictorianEngland. It was 'to make cleanliness commonplace; to lessen work for women; to foster health

and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the

people who use this companys products.

This was long before the phrase 'Corporate Mission' had been invented, but these ideas have

stayed at the heart of our business. Even their language and the notion of only women doinghouseworkhas become outdated.

Although Unilever wasn't formed until 1930, the companies that joined forces to create thebusiness we know today were already well established before the start of the 20th century.


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Unilever's founding companies produced products made of oils and fats, principally soap and

margarine. At the beginning of the 20th century their expansion nearly outstrips the supply ofraw materials. Tough economic conditions and the First World War make trading difficult for

everyone, so many businesses form trade associations to protect their shared interests. In 1990s

the business expands into Central and Eastern Europe and further sharpens its focus on fewer

product categories, leading to the sale or withdrawal of two-thirds of its brands. In the 21

st

century the decade starts with the launch of Path to Growth, a five-year strategic plan, and in

2004 further sharpens its focus on the needs of 21st century consumers with its Vitality mission.In 2009, Unilever announces its new corporate vision working to create a better future every

day with brands that help people look good, feel good and get more out of life.

In a history that now crosses three centuries, Unilever's success has been influenced by the major

events of the day economic boom, depression, world wars, changing consumer lifestyles and

advances in technology. And throughout we've created products that help people get more out oflifecutting the time spent on household chores, improving nutrition, enabling people to enjoy

food and take care of their homes, their clothes and themselves.

2.2) Mission of the company:

Unilever recognizes that the world in which they operate is changing. Consumers are

increasingly bringing their views as citizens into their buying decisions, demanding more from

the companies behind the brands. They want companies and brands they trust. Unilever

embraces these new expectations. Our heritage of good governance, product quality and longexperience of working with communities gives them a strong base. They aim to build on this by

taking the next step in transparency and accountability. They will stand visibly as Unilever,

behind their products and everything they do, everywhere.

2.3) Vision of this company:

They have always believed in the power of their brands to improve the quality of peoples lives

and in doing the right thing. As their business grows, responsibilities also increase. Theyrecognize that global challenges such as climate change.

The four pillars of vision set out the long term direction for the company where they want to go

and how they are going to get there ---

Work to create a better future every day

Help people feel good, look good and get more out of life with brands and services that

are good for them and good for others. Inspire people to take small everyday actions that can add up to a big difference for the

world.

Develop new ways of doing business that will allow them to double the size of companywhile reducing environmental impact.


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2.4) Service offering:

Food : knorr Taaza

Home Care: Wheel Vim Surf excel

Personal Care: AXE Clear Close up

Dove Fair & Lovely

Lifebuoy Lux Pepsodent

Ponds Rexona Sunsilk

Vaseline


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Pure it

3) About Product

3.1) Product introduction:

Everything from look and feel to fragrances of Lux is a delight to the female senses. Lux has

been associated with beauty since 1924. Over the years, Lux has covered various aspects of

beauty and stardom. But now Lux feels that women have forgotten that beauty should be fun.And looking great is an integral part of being a woman. Lux is here to remind, encourage, inspire

women and have fun with them. Because of deep down, every woman wants to feel like a

fortune. On this note, Lux is celebrating the feminity and playfulness to remind women to enjoyabsolutely everything about becoming and being beautiful.

3.2) Product category:

LUX and other soaps fall into the category of Convenience Good. LUX falls under the category

of toiletry product as a beauty soap.

3.3) Product types:

Lux Strawberry and Cream: Every woman wants to be indulged! Use Lux Strawberryand Cream to fill your skin smooth and silky. Lovingly created with a sumptuous mix of

luscious strawberries and moisturizing cream extracts that leaves your skin soft.

Lux Peach and Cream: No women can resist the pleasure of being pampered. Use LuxPeach and Cream, lovingly created with the blend of juicy peach and moisturizing cream

extracts, for a velvety, soft skin. Just gorgeous!


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Aqua Sparkle: Wake upwith refreshing mineral s

your skin from bored to

Lux Purple Lotus & Cr

softer than a petal. Since

of soap that moisturizes

Lux Fresh Splash: A neportfolio of Lux along wi

and improved fragrance.which provides soft & sLux!

to a body that looks fresh and full of life. Luxalts and seaweed extracts, is the best kept secret

ull of life! There wont be dull days!

am: New Lux purple lotus & cream, truly mak

bathing is a daily ritual, it's very important to us

our skin and leaves you feeling your gorgeous

w summer variant Lux Fresh Splash has also beth this re-launch. Lux is now in a new shape, ne

or the first time, Lux is enriched with Silk Proooth skin. And with all these changes, Lux is n

qua Sparkle, to help renew

es your skin

e the right kind

est!

n added to the w packaging

ein Extract ow the Best Ever


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3.4) Corporate Connection of

Unilever Bangladesh Limited,

manufacture and distribution ofhousehold care, fabric cleaning

grooming products, as well as

business by focusing on theircustomer wants a healthy lifesty

customer they have launched L

wants. They want to capture mbetter quality product in betweeconnection of marketing plan of

4) E

4.1) Internal environment:

Internal environment of lux co

employees they are closely bindi

huge amount of resources.

4.2) External environment:

External environment is so muthey can find out their threat and

Diagram of Lu

arketing plan

a fast moving consumer goods company,

home care products, personal care products, an, skin cleansing, skin care, oral care, hair ca

tea based beverages. Their mission & vision

rands & to fulfill the customer satisfaction.le & they want more variety & quality product.

x. Because Lux will be able to satisfy the c

re market share to delight the consumer of Lreasonable price. Their mission & vision sup

Lux.

vironmental Analysis and Forecasting

nsist of employees and resources. Lux has

ng like a grand family. Lux is an established p

ch important for any organization. From extealso take opportunities to meet the market need

- Basic Elements of External Environment

engages in the

d foods. It offers re, and personal

is to build their

They know that So to satisfy the

stomer needs &

x. They provide ort the corporate

large group of

oduct so it has a

nal environment .


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Mainly two types of business element in external environment:

1. Directly interacting forces.

Competitors Suppliers

Buyers

Owners

2. Indirectly interacting forces.

Government/Political

Economic

Technology

Socio culture

Legal

But among of them major external environment factors are:

Social

Political &

Economic trend

Social: Unilever sells lux by maintaining the social or socio cultural environment of the

country. They dont use anything which can hurt the culture of our country. Because of

this they are selling Lux nicely.

Political or Government: They follow the government rules & regulations. So they

dont face any kind of problem. According to government rules they pay taxes. But

sometimes due to political instability they have some problem in business environment.

For the next six month political instability can be happened. So they need to take

appropriate steps for this. If they do their product development, promotional activities &

others now then they will be able to sell lux nicely.

Economic Trends: According to the purchasing power of people lux is sold. Unilever

knows that Bangladesh economy is growing economy. According to that thing they haveset the price of lux.


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4.3) Competitive Analysis:

The beauty soap industry has a few major producers of which Unilever holds market share of

slightly less than 50%. Other competing brands like Tibbet, Aromatic, Meril, Lilly, Lifebuoy and

Keya have started to have strong consumer base, but LUXs product features, distribution and

promotional activities have created high brand loyalty for which it is still the market leader.

4.4) Market trends & potential:

Lux market trends & potential is really very good. So Unilever tried to maintain the lux trend &

potential. They follow a structured price strategy and follow the need of the customer & maintain

a consistency in branding. They know that if they are able to maintain their market trend &

potential then other competitors cant hamper them.

4.5) SOWT Analysis of Lux:

SWOT analysis is an important step in planning and its value is often underestimated despite the

simplicity in creation. The role of SWOT analysis is to take the information from the

environmental analysis and separate it into internal issues (strengths and weaknesses) and

external issues (opportunities and threats).

STRENGTHS

Strong Market Research (door to door

sampling is done once a year in Urban

and Rural areas).

Many variants.

Strong sales and distribution network.

Strong brand image.

Positioning focuses on the attractive

beauty segment.

Strong brand promotion but relatively

lower price which is a winning

combination in the popular segment.

WEAKNESSES

Usage rate/ wear rate is high and is

generally mushy and wet.

Lux is mainly positioned as beauty

soap targeted towards women, hence it

lacks liberal appeal.

Stock out problems - replacement time

is high in semi-urban/rural areas.


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OPPORTUNITIES

Beauty segments Compounded Annual

Growth Rate (CAGR) is very high. Lux

must reinforce its presence in the

beauty segment.

Retentive strategy requiredas the soap

segment is in the mature stage of its product

life cycle.

Liquid body wash is currently in the

growth stage so Lux should come out with

more variants in this segment.

Line extensionprobably with more variantscatering to the beauty segment like natural,

herbal soap etc

THREATS

High internal competition.

New entrants or local competitors.

Excessive dependence on beauty

segment makes Lux vulnerable to

changing customer tastes.

Technological change makes the

existing products out of date. Luxshould

focus on technological innovations like Body

Wash.

5) Segmenting & Targeting

5.1) Segmentation:

From the above diagram we can easily understand that Lux follow a segment which capturing

the beauty soap category and price is average. So the target customers are who those are beauty

Beauty soap Healthy soap

Dove

Imperial

Fa

Farmesi

Lux

Savlon

Lifebuoy

P

R

I

C

e

Types of Soap

High

Medium


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conscious and can pay medium price for a better soap. For this it holds a slogan to the women

declare your beauty.

Urban and sub urban middle class, and rural poor people are the largest part of Bangladesh

population. A research carried out by Unilever Bangladesh reveals that urban rich people are

more likely to buy imported and expensive products. Moreover rural poor people tend to buy

cheap products even without evaluating its quality. However urban and sub urban upper middle

and middle class people tend to buy affordable and quality products.

Market Segments

5.2) Targeting:

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 socio economic clusters

(SEC) they target category B and C, because they are assumed to be financially well-off and can

afford to buy LUX.

Urban Rich

Urban and Sub

Urban UpperMiddle and Middle

Class

Rural Poor


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Socio Economic Clusters

A B C D E

Income High Income Upper

Middle Level

Income

Mid

Level

Income

Lower Middle

Income

Low

Income

Education High Level ofEducation

EducatedSlightly Lessthan Cluster A

EducatedSlightlyLess than

Cluster B

EducatedSlightly Lessthan Cluster C

Very LowLevel of

Literacy

Socio economic clusters segmentation

6) Objectives of Lux

Establish a strong brand image and consumer loyalty.

Maintain positive strong growth.

Decrease consumer acquisition cost by almost 1.5% per year.

Easiest and availability of the product to the target consumer.

7) Marketing strategies

Marketing strategy is a process that can allow an organization to concentrate its limited resourceson the greatest opportunities to increase sales and achieve a sustainable competitive advantage.

Unilever can do their marketing strategies for Lux in the following process.

7.1) Market position of Lux:

Unilever Bangladesh Ltd can be 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 price with

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

quality beauty soap.

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

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

fragrances and product designing, in comparison to its competitors. The pricing of LUX is same


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but consumers rate it as the p

created a strong customer loyalt

The positioning map of the com

on two dimensions. That is price

7.2) Product Management of L

Everything from look and feel t

years, Lux has covered various

have forgotten that beauty shoul

Lux is here to remind, encourag

every woman wants to feel lik

playfulness to remind women

beautiful. So lux offers many di

Cream, Lux Peach and Crea

different personality to hold th

important matter for every prod

the Lux marketing plan. It also r

oduct which gives them the highest quality.

for LUX, for which it will be the market leade

any is shown to describe LUXs position in the

and quality.

UX:

o fragrances of Lux is a delight to the female

aspects of beauty and stardom. But now Lux

be fun and looking great is an integral part o

e, inspire women and have fun with them. Bec

a fortune. On this note, Lux is celebrating

to enjoy absolutely everything about beco

ferent colors and fragrances products like Lux

, Aqua Sparkle, Lux Purple Lotus & Crea

market position and maximum market share

ct. Branding for Lux can help to achieve the

inforces the second objective.

This positioning

in the industry.

consumers mind

enses. Over the

eels that women

being a woman.

ause deep down,

he feminity and

ming and being

Strawberry and

. These create a

. Branding is an

first objective of


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7.3) Pricing:

Though Unilever Bangladesh gives its LUX customers a lot in terms of the product 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 price has a high

risk of creating price war among the rivals which will eventually cause a loss of profit. Its pricesare almost equal to its competitor. Lux basically follows the risk free pricing. Table compares

Luxs price with its major competitor. Company carries out research on competitors price and

brand loyalty when it feels extreme necessity of changing price. The brand loyalty test is an

exploratory research which is known as Brand Health Check-Up (BHCU). Sometimes it follows

promotional pricing by which consumer get one free through buy one. For capture more market

share manager can follow product line strategy to reach more customers from higher level to

lower level. Also can follow value pricing.

Comparative scenario of soaps price

7.4) Distribution:

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 are manufactured at Kalurghatfactory. Table shows the location of its six warehouses in Bangladesh. The company does not

use its own fleet of transport for distributing its product. However, it has outsourced its

distribution process to various third party distributors, exclusively dedicated to Unilever

Bangladesh Ltd. These distributors then supply the product all over Bangladesh to a huge

number of retailers. Even though LUX targets the urban and sub urban middle and upper middle

class people they are distributing their products all over Bangladesh because of a recent increase

in demand of its product to all segments of the population.

Brand Price(100gm)

Lux 26Aromatic 26

keya 26

Sandalina 29

Division Location of Warehouse

Dhaka Dhaka City

Chittagong Kalurghat Heavy I/A

Sylhet Sylhet City

Rajshahi Rajshahi City

Khulna Khulna City

Barisal Barisal City


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7.5) Marketing Communication:

Unilever Bangladesh can undertake 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. The promotion mix is classified as

follows:

Advertising: Its certain annual promotional campaigns like LUX Channel i

Superstar and LUX Channel i Annual Cinema Awards has made the product a part of

the glamour world. Since the 1930s, over 400 of the worlds 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

and female celebrities internationally Shahrukh Khan, Aishwarya Rai, Katrina Kaif

for their advertising campaign. They give advertise through-----Transit, Electronic

Media, Print Media, Direct. For effective advertising have to decide media chart and

the type, tone, appeal and order of presentation of advertising.

Sales Promotion: Sales promotion, a key ingredient in marketing campaigns,

consists of a collection of incentive tools, mostly short 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.

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

companys ability to achieve its objectives. PR involves a variety of programsdesigned to promote or protect a companys image or its individual products.

They can perform the following functions----

Press relations

Product Publicity


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Corporate Communications

Counseling

Direct Marketing: 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 direct marketing activities of LUX is in well concern among

people in Bangladesh.

7.6) Market Research:

After successfully doing the above statements it is important to do market research. Because if it

is done then they will be able to know the customers problem and according to that they can

improve the product quality. And if they improve the product quality then they will be able to

sell their product in a huge number and be able to satisfy the customer. As Unilever is a big

company so if they do market research then they will be able to know the consumer need &

according to their need they can supply the product within a reasonable price.

8) Action programs

Unilever Bangladesh Ltd has a very well-structured organization. Every department of it does its

job very efficiently. The marketing plan which we have made will be implemented and

accomplished by different departments. First of all the plan will have to be approved by the top

level executives. The strategies regarding the product, its promotional activities, price

sett ing al l will be done by the marketing department. They can set the time of advertisement

of lux. In rainy season they dont need to do billboard advertisement. They can do this kind of

advertisement in summer or winter season. For advertisement it can follow the media chart

which is shown below. Whatever advertisement given is not so much important; important is the

timing of advertisement. For Lux middle of any popular television program advertise may be

more effective than middle of an unexciting talk show. As it is a beauty soap, the appeal of

advertisement bearing emotion which consist romance not family ties. If in the future company

wants to offer unisex Lux soap, in advertisement they can show the family ties as well. Lux is

now in maturity stage so reminder advertising is most appropriate at this stage.


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MeMMMM

Media Type Summer Rainy Autumn Late Autumn Winter Spring

Radio

Television

A level

Television

B level

Billboard

News paperEnglish

News paper

Bangle

The job of designing the product, manufacturing and packaging will be accomplished by the

production department. They can add more fragrances in lux. Finance department will be

responsible for budgeting and financing the product. They need to set a specific budget so that

they will be able to earn profit. Like other brands of the compan y, a brand manager

needs to administer overall activities of the product. If it is done then they will be able tocapture most of the market share.

9) Financial projection

Lux is doing their business nicely. Their financial projection is given below.

Sells Next threemonth Next sixmonth Next oneyear After oneyear After twoyear

Super

markets

3100000 5025000 7700000 59200000 79852000

others 5200000 8578000 10520000 75605000 91250000

Total sells 8300000 13603000 18220000 134805000 171102000

Six Seasons

Media Chart


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Cost of

production

Next three

month

Direct cost 2600000

Indirect cost 4100000

Total cost 6700000

Profit Next three

month

Total profit 1600000

In the above chart we see that pr

exists then lux will be able to e

new competitor will enter into thin the market then they need to

forever. So on the last stage of t

& that will be their breakeven p

if they want to save lux then th

the decline stage.

The above diagram is the diagra

decline stage they can destroy th

Next six

month

Next one

year

After on

year

4922000 7161000 51605000

6791000 8873000 68920000

11713000 16034000 120525000

Next six

month

Next one

year

After on

year

1890000 2186000 14280000

fit of lux is increasing. It is our assumed profit

arn profit. But now lux is in the maturity stag

e market & then their sells will be declined. If tkill the new competitor. But in this world no

heir maturity may be their total sells will be eq

int. And on the decline stage the product may

y need to re-launch the lux in a new way & in

of product life cycle. Now lux is in the matu

product or they can re-launch lux in a new wa

After two

year

70630000

85020000

155650000

After two

year

15452000

. If this condition

. After 10 years

hey want to exist roduct can exist

al to total profit

be declined. But

a new image on

ity stage. On the

y & image.


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10) Implementation Control

10.1) Sales objective:

Their sales objective will be to sell Lux as much as possible. Because if they sell Lux then they

will be able to earn a huge amount of profit.

10.2) Sales forecast:

Lux feels that the sales forecast is conservative. It will steadily increase sells as the advertising

budget allows. As this Lux will be available in both super markets & other stores, so in the

following table we can see its sales forecast.

We assume that now Lux position is good. And hopefully next year their sells will be increasing.

But when their sells started to decline then proper promotional activities will be pushed to

increase the sells.

10.3) Expenditure against budget:

The expense forecast will be used as a tool to keep the department on target & provide indicators

when correction & modification are needed for the proper implementation of the marketing task.

Now the marketing expense is limited for Lux because it is on maturity stage. But after the

maturity stage marketing expense will be increased as promotional activities will be increased.

10.4) Periodic evaluation of all marketing objectives:

After that it is important to evaluate the marketing objectives time to time. If it is done then it

will be better for them. Because of this they will be able to identify the problem & solve the

problem.

Sales 2012 2013 2014 2015 2016

Super

markets

18000000 20000000 25000000 30000000 30000000

others 20000000 22000000 30000000 40000000 50000000

Total sales 38000000 42000000 55000000 70000000 80000000


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10.5) Readjustment to the marketing plan:

If any activities didnt done in the marketing plan then those activities must be readjusted to the

marketing plan. If it is done then unilever will be able to sell Lux in a large number.

11) Conclusion

Unilever is a multinational consumer product manufacturing and operating hundred countries all

around the globe. Unilever is one of the most popular brand is LUX. Marketing plan of Lux

support the corporate view. They segments LUX market according to geographical locations. It

further differentiates these segments into Socio Economic Cluster SEC. Tactical marketing tools

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 availablein different fragrances under three different sizes. Since the demand for beauty soap market is to

a great extent oligopolistic, variations in price lead to price war which can eventually break down

The Companys market share. Thus Unilever cannot provide a better price than its competitors

but the price is affordable by most of the people. Unilever Bangladesh has outsourced its

distribution channels to third party distributors which allow them to distribute LUX in massive

bulks amounting to around ten million pieces. It undertakes the largest promotional activities in

the beauty soap industry. Other competing brands like Tibbet, Aromatic and Keya have started

to have a strong consumer base but LUX s product features distribution and promotional

activities have created high brand loyalty for which it is still in the market leader. Unilever with

the aid of its heavy promotional activities has been able to penetrate the market but the other

producers in the industry are posing a threat towards Unilevers market share as they have

moved towards the rural masses of the population. Therefore Unilever Bangladesh should

undertake further steps such as- moving towards the rural and poorer segment, attract

children by making a special product for kids and other innovative promotional activities

to retain its command in the industry.


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12) Bibliographies

http://l.yimg.com/t/movies/glamsham/20100303/06/20100302-160000-

1_1267597529_large.jpg viewed on 27th July, 2012.

http://www.fundinguniverse.com/company-histories/Lever-Brothers-company-company-

History.html viewed on 28th July, 2012.

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=51886

625 viewed on 29th

July, 2012.

http://en.wikipedia.org/wiki/Lux_%28soap%29 viewed on 30th July, 2012.

http://www.google.com/search?pq=lux+beauty+soap+-+lotus+of+bangladesh&hl=en&ds=i&cp=8&gs_id=ad&xhr=t&um viewed on 31

stJuly,

2012.

marketing plan of lux

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