Strategic Marketing Project Report

on Lux Soap

PRESENTATION BY:
SHAHBANO KHAN
JAVERIA
ABDULLAH
WALEED
ISMAIL

Contents:

Company Profile UL
Distibution Channel - UL
Product Mix UL
Overview Lux Soap
Marketing Mix
SWOT Analysis
Competitor Analysis
Market Segmentation

Recommendation

Reference

Company Profile - UL

Company Profile - PUL

A 52% owned subsidiary of Anglo Dutch giant Unilever.

Pakistan 1948
Pakistans largest FMCG company
Touching 2 out of 3 Pakistani consumer
20 distinct categories Home and personal care products, food and
beverages.
100 factories Pakistan Manufacturing its diverse product range
Headquarter: Karachi
Market share Toilet soap category 54.3%

Revenue Percentage:

Distribution Channel - PUL

Distribution Channel - PUL

2000+ Suppliers and associates
4000 Redistribution stockists
Covering 1 million retail outlets
Reaching 250 million rural consumers

Product Mix- PUL

The width of the PUL Product mix:

The width of the product mix refers to the number of
different product line the company carries
E.g:

Personal wash
Laundry
Skin care
Oral care
Deodorants
Colour cosmetics
Ayurvedic personal and health care

 Shampoo
Tea
Coffee
Foods
Ice cream
Width = 12

The length of the PUL Product mix:

The Lenght of the product mix refers to the total number of
items in the product mix.
E.g:

Personal wash: Lux, Lifebuoy, Liril, Hamam, Breeze, Dove,

Pears, Rexona
Laundry: Surf excel, Rin, Wheel
Skin care: Fair & Lovely, Ponds, Vaseline, Aviance
Oral care: Pepsodent, Close up
Deodorants: Axe, Rexona
Colour cosmetics: Lakme
Ayurvedic personal and health care: Ayush

 Shampoo: Sunsilk, Clinic

Tea: Broke bond, Lipton.
Coffee: Bru
Foods: Kissan, Annapurna, Knorr
Ice cream: walls
Width = 30

The Depth of the PUL Product mix:

The depth of the product mix refers to the number of variants of each
product offered in the line
E.g: If close up toothpaste comes in three formulation and in three sizes,
close up has a depth of 9 (3*3)

The Consistency of the PUL Product mix:

The consistency of the product mix refers to how closely related the
various product lines are in the use, production requirement,
distribution channel or in any other manner.
PUL Product line are not consistent because of its large width.

Overview : Lux Soap

1916 Laundry soap
1925 Bathroom soap

Pakistan 1952
First brand ambassador: Meera (for 14 years)
Market share is almost equal to Lifebuoy And higher than
Tibet.

Marketing Mix:

Product:
Product Classification:
Tangible
Non durable good
Lux and other soaps fall into the category of
convenience good.

Product Life Cycle:

Maturity Stage

Prominent Variants:

Lux almond
Lux orchid
Lux fruit
Lux saffron
Lux sandalwood
Lux rose
Lux international
Lux chocolate
Lux aromatic extracts
Lux oil and honey glow etc.

Logo:
Labelling:
Lux trade character or logo is present prominently
in the package
Female model
Displayed graphically Key ingredients

Packaging:
Different colors Different variants( Saffron
Saffron variants & Pink Rose extracts etc. )
Package size 100gm, 120gm, 150 gm

Launched Mini Lux 45gm - Rs 5to 20

Price:
Competitive prices: Neither high nor low

Place:
PUL distribution network key strength
(Which helps reach out its product across the length
and width of the vast country)

2000+ Suppliers & Associates

7000 Stockists
Direct coverage in over 1 million retail outlets

Network:
Factory Company warehouses Distributor
Market
Factory Wholesaler & Big retailers (Bulk orders)
30% Sales

Promotion:

Active since 1929

Featured all top actress of their times.

Idea: if it is good enough for a film star, it is good

for me.

First Male Brand Ambassador:

Pakistan Lux 2014 Calender:

Mehwish Hayat and Fahad Mustafa

Sales Promotion:
Lux gold star offer: 22 Carat Gold coin in the Soap
First 10 caller (Extra 30 gm gold)
Lux star bano, Aish karo contest: A special
promotional pack of lux soap Scratch card -50 lucky
winner got the chance to meet Meera

SWOT Analysis

Strengths:
Strong market research (Door to door sampling once
in a year Rural and Urban area.)
Many variants (Almond oil, Orchid extracts, Milk
cream, Fruit extracts, Saffron sandalwood oil and
Honey)
Strong sales and distribution network backed by
PUL
Strong brand image

Dynamically continuous innovations New variants

and innovative promotions (22 carat gold coin
promotion Chance Hai)
Strong brand promotion but relatively lower prices
Winning combination.
Mass appeal/Market presence across all segments (
15% of soap market)

Weakness:
Mainly positioned as beauty soap targeted towards
women, lack unisex appeal
Some variation like the sunscreen, international
variant did not do well in the market

Not much popular in rural areas

Opportunities:
Soap industry is growing by 10% in Pakistan
Beauty segments compounded annual growth rate
(CAGR) is very high
Liquid body wash is currently in growth stage Lux
should come out with more variants in this segment
Large market share Strong hold over the market

Threats:
High internal competition (Pears Beauty segment)
New entrants (Vivel,Vital and Harmony)
Maturity stage threat of slipping down to decline
stage if constant reinvention is not carried out

Competitor Analysis

Internal Competitor:
Lifebuoy: 1895, 18% Market shares

External Competitor:
Safe Guard consumers products limited (P&G):
2nd Largest soap maker after PUL
9.2% Market share
Brands: Camay, Fairy, Ivory

 Colgate:
Brand: Palmolive

ZIL Limited:
1.75% growth in initial five months
Brand: Capri.
Sold in six states

Market segmentation

Market segmentation of Lux

Gender: Female
Age: 16-35
Income: Middle income group (Rs. 35 to 75)
Highest selling beauty soap in urban area (Rural area:
Lifebuoy)
Expensive Affordable,
Target Area: Urban and Sub urban Upper middle
and middle class people

Product Positioning of Lux

Created Good Position Buyers mind Better product
attributes, price and quality
Offering product in a different way
Offering improved quality of the product affordable price
with high branding to position the product as a best
quality beauty soap in buyers mind.
Market share of UL: 54.3%
Market share of LUX: 15%
Better Positioning Market leader of beauty soap

Recommendation:

Recommendation:
Ayurvedic (Herbal) variant
Lux kids special soap
Target rural area
Target male customers

Questions???