INDUSTRY ANALYSIS

• The Toilet soaps market is estimated at 5,30,000 tpa

including small imports.

• Bathing and toilet soaps accounting for around 30% of the

soap market.

• Soap Industry divided into three segments namely premium,

popular and economy.

• Premium soaps are estimated to have a market volume of

about 80,000 tones which around share of 14 to 15%

2

MAJOR PLAYERS

• HUL is India's largest fast moving consumer goods company holding 54.3% share of the overall soap market.

• Hindustan Unilever Limited (HUL) is a subsidiary of Unilever.

• Company touching the lives of two out of three Indians with over 20 distinct categories in home & personal care product and foods & beverages.

• They are manufactured over 40 factories across India.

• Distribution network comprising about 4,000 redistribution stockiest, more than 2,000 suppliers and associates, covering 6.3 million retail outlets reaching the entire urban population and about 250 million rural customers.

DIVISIONS

Home and Personal Care

• Personal Wash: Lux, Lifebuoy,Liril,Hamam,Breeze,Dove,Pears,Rexona

• Laundry: Surf excel, Rin, Wheel

• Skin care: Fair and Lovely, Ponds, Vaseline, Aviance

• Oral care: Pepsodent, Close up

• Deodorants: Axe, Rexona

• Colour cosmetics: Lakme

• Ayurvedic personal and health care: Ayush

Foods & Beverages.

• Tea: Brooke Bond, Lipton

• Coffee: Bru

• Foods: Kissan, Annapurna, Knorr

• Ice cream: Kwality walls

• Lux soap was first launched in 1916 as laundry soap targeted

specifically at ‘delicates’.

• Lux toilet soap was introduced in 1925 as bathroom soap.

• In India it launched in the year 1929.

• The name ‘LUX’ was chosen as a play on the word “luxury”.

• Lux has offered a range of soaps in different colors and world

classs fragrances.

PROMINENT VARIANTS

• Lux Almond

• Lux Orchid

• Lux Fruit

• Lux Saffron

• Lux Sandalwood

• Lux Rose

• Lux International

• Lux Chocolate

• Lux Aromatic Extracts

• Lux Oil & Honey Glow

• Lux Provocateur

Logo

Labeling:

A Novel Metallic Substrate packaging showcases the ingredients, and female model is shown on the pack. Also displayed graphically are the key ingredients.

Packaging:

Different colors for different variants such a saffron for the saffron variant, pink for the rose extracts etc.

Bars come in package sizes of 100g, 120g, 150g. Lux has also launched 45g variant called mini Lux priced at Rs.5/-

PRODUCT LIFE CYCLE

Advertising Brand Ambassadors Leela Chitnis, madhubala, Mala Sinha, Sharmila Tagore, Sheeda

Rehman, Saira Banu, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai, kareena kapoor, Priyanka Chopra etc.

Lux advertising through ages

• Leela chitnis in the first lux print adv.featuring an Indian actress.• Aishwarya rai in a print advertisement featuring lux international• Priyanka chopra in the latest lux advertisement.

Sales Promotion

Lux Star Bano, Aish Karo contest Har Star Lucky Star Lux Gold Star offer

• Events:

Lux celebrated 75 years of existence in

a grand way. The event was held at

the grand intercontinental in Mumbai.

• Limited Edition:

coming with limited edition strategy

like chocolate seduction, aromatic

glow, festive glow and haute pink.

Public Relation

segment Price/weight

PremiumPopulareconomy

> Rs. 15/75 gms

Rs. 8-15/75 gms

< Rs. 8/75 gms

segment Price/weight

Lux crystalLux festiveMini Lux

Rs. 17/100 gms

Rs. 15/100 gms

Rs. 5/45 gms

Pricing strategy: Market Penetration.

Pricing as per segment: Recent pricing of some variants:

Note:

However, recently HUL has been forced to hike its price by one rupee, to Rs 17 (for 100 gm), giving in to pressures of inflation.

Cutting Edge Distribution Network

• 2,000+ suppliers and associates• 7,000 stockiest• 1 million retail outlet direct coverage across India

warehouseMfg unit

D1

D2

D3

Market Consumer

Modern distribution strategy

RSNet:

An IT-Powered system has been implemented to supply stocks to

redistribution stockiest on a continuous replenishment basis.

Project Shakti:

• Started in year 2001 by HUL.

• HUL’s partnership with self help groups of rural women.

• Covers over 5,000 villages in 52 districts of Andhra Pradesh,

Karnataka, Madhya Pradesh & Gujrat.

• HUL vision is to reach over 1,00,000 villages, thereby touching about

100 million consumers.

• SHGs have chosen to adopt distribution of HUL’s products as business venture.

• As most of these women are from below the poverty line, and live in

extremely small villages (less than 2000 population), this earning is

very significant for their past household income.

SWOT ANALYSIS

STRENGTHS

• Strong Market Research

• Many variants

• Strong sales and

distribution network backed

by HUL

• Strong brand image

WEAKNESSES

• Lux is mainly positioned as beauty soap targeted towards women, hence it lacks unisex appeal

• Some variants like the sunscreen, International variant did not do well in the market

• Certain advertisements like the recent one with Shah Rukh Khan resulted in controversial interpretations of the message.

OPPORTUNITIES

• Soap industry growing by 10%

in India

• Beauty segment's Compounded

Annual Growth Rate (CAGR) is

very high.

• Line extension - probably with

more variants catering to the

beauty segment like natural,

herbal soap etc

THREATS

• New entrants/local competitors/

MNCs would increase the

competition (Camay, P&G)

• High internal competition

INTERNAL COMPETITORS

LIFEBUOY:

Landed On: 1895

Brand By: Hindustan Unilever Limited (HUL)

Market Share: 18% Worth Rs 6,000 Crore.

Repositioned: In Year 2002 From Hard Soap To Mild Soap.

SANTOOR:

Landed On: 1986

Brand By: Wipro consumer care.

Popular segment: 2nd largest brand.

• CINTHOL:

• Brand By: Godrej consumer product ltd..

• Economic segment: largest brand.

VIVEL:

•Landed On: 2007

•Brand By: ITC

•Economic segment: largest brand.

GENDER:• Lux as a brand symbolises beauty.

• Lux has been, since its introduction seen as soap for women.

• Lux ads has hosted a bevy of film stars.

AGE:

• mainly attract customers that fall within the age group of 16 to 35.

• One of the latest entrants, Lux crystal shine is mainly targeted the

youth.

INCOME

• price varies from Rs.15 to rs.20

• Target Market Starts From The Lower And Middle Income Group.

FACTORS FOR SEGMENTATION

• In 1916 launched as laundry soap in uk.

• In 1925 extended to toilet soap category.

• Positioned as a beauty soap in 1929.

• HUL has since used successful film actors of the time.

• Lux extended towards soap cake to range of shower gels, liquid

soaps and moisturizing bars in order defeat competition.

• Lux has recently started positioning strategy for e.g. ordinary

woman can relate to the brand.

BRAND POSITIONING

Market Research Report

• Area Of Research:

“Studying about Lux product of Hindustan Unilever Ltd.”

• Period Of The Study: 10-15 Days

• Sample Size: 60 respondents.

• Limitations Of The Study:

- Probable response rate : Fair

- Time Required : Slow

- Cost : High

- Quantity of information : Fair

0

5

10

1520

Lux Lifebuoy Humam Dove Peers Others

Brands

Use of Product

12%

70%

18%

0

10

20

30

40

50

Using by gen Advertisment Word of Mouth

WHICH VARIETY OF SOAP DO YOU USE?WHICH VARIETY OF SOAP DO YOU USE?

HOW DID YOU COME TO KNOW ABOUT LUX PRODUCT?HOW DID YOU COME TO KNOW ABOUT LUX PRODUCT?

13%

87%

0

20

40

60

Weekly Monthly

TIME

HOW OFTEN DO YOU PURCHASE THE PRODUCTHOW OFTEN DO YOU PURCHASE THE PRODUCT

64%

27%9%

0

10

20

30

40

Retailers Retailoutlets

Others

sources of product

FROM WHERE DO YOU PURCHASE THE PRODUCT?FROM WHERE DO YOU PURCHASE THE PRODUCT?

5%

53%

24% 18%

0

10

20

30

40

45Gm 100Gm 120Gm 150Gm

PRICE

WHICH SIZE DO YOU PREFER?WHICH SIZE DO YOU PREFER?

7%

23% 23%

47%

05

1015202530

packaging Assuredquality

Frangance Trust inbrand

WHAT DO YOU LIKE ABOUT THE PRODUCT?WHAT DO YOU LIKE ABOUT THE PRODUCT?

29%26%

18%

13%

8% 6%

0

5

10

15

20

Price Quality Discounts`Specialoffers

Services` Others

Factors

WHAT FACTORS YOU CONSIDER WHILE BUYING THE PRODUCT?WHAT FACTORS YOU CONSIDER WHILE BUYING THE PRODUCT?

20%

80%

0

10

20

30

40

improper Convenient

YES87%

NO13%

REMARKS ABOUT PACKAGINGREMARKS ABOUT PACKAGING IS PRICE AFFORDABLE?IS PRICE AFFORDABLE?

72%

28%

0

20

40

60

lux others

Brand loyalty

IF LUX IS NOT AVAILABLE AT YOUR RETAILER’S OUTLET DO YOUIF LUX IS NOT AVAILABLE AT YOUR RETAILER’S OUTLET DO YOU

SWICH OVER TO OTHER BRAND?SWICH OVER TO OTHER BRAND?

Thank You