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-- an HUL brandan HUL brand

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Contents:Contents:1) Statement by William Hesketh Lever 12) Unilever & HUL at a glance 23) List of HULs famous brands 34) Lux an introduction 45) Origin of Lux 56) Advertising strategy 67) Brand ambassadors of Lux 78) Brand ambassadors of Lux of different countries 89) Product life cycle 910) Introduction stage 1011) Growth stage 1112) Maturity stage 1213) Decline stage 1314) Market captured by Lux & HUL 1415) SWOT analysis 15-1616) Competitors of Lux 17-1817) Conclusion 19

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To make cleanliness commonplace, to lessen

work for women, to foster health and contributeto personal attractiveness, that life may be more

enjoyable and rewarding for the people who use

our products.

William Hesketh Lever

Doing well and doing good.

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Unilever & HULat glanceUnilever & HULat glance HindustanUnilever Ltd. is a well-known and largest FMCG company in India.

HULhas always revamped its products to meet the changing needs of theconsumer without compromising on the quality.

HUL leads the market in the toilet soap category with 54.3% market share. Luxhas inched up to be on par with Lifebuoy in HUL'ssoaps portfolio. TheLux brandnow hasanalmost equalmarketshareas HindustanLever'slargestsellingsoapbrand - Lifebuoy.

Unileverisoneof the worldslargest & leadingMNCsin India. Unilevercommenced theiractivitiesonalargescale by settingup theirfirst factory inNetherlandsin the year1872.

The usageofUnileverproducts by over90% of peoplein Bangladesh standsatestimony to theirsuccessfuloperation. The FMCG category isalwaysabattleground forall thecompeting firmsand the

bathingsoap category is no different. With more firms enteringthe market,maintaining thecustomerbaseis notvery easy. Withinsix months, ITC'ssoapproducts have beenable tocapture 1.75% of the marketshare.

HindustanUnileverLimited (HUL), a52%-owned subsidiary of Anglo-Dutch giantUnilever, has been workingits way into Indiasince 1888. Formerly knownas

HindustanLeverLimited. The Group's principalactivitiesare to manufactureandmarketconsumerproducts. HindustanUnileverLimited (HUL), asubsidiary ofUnilever, isa fast movingconsumergoods (FMCG) company based in India. Thecompany focuseson efficient delivery toconsumers with animproved supplychain, brand buildinginitiativesand innovation, which has helped thecompanytosustainitsleadership positionin theoverall FMCG category in India.

HULisalsooneof thecountry'slargest exporters;it has beenrecognised asaGolden SuperStarTradingHouse by the Governmentof India.

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Listof HULs famous brands:Listof HULs famous brands: The array of productsshow thatthey produce household care, fabric cleaning, skin cleansing, skin care, oral

care, hair care, personal grooming & tea-based beverage productunder following famous brands:

Lux Wheel Lifebuoy Dove Pears Hamam Breeze Liril Vaseline Fair & Lovely Ayush Ponds Close Up Sunsilk Lipton Lipton Taaza Bru Pepsodent All Clear Vim Surf Excel Rexona Lakme Kissan Brooke Bond Knorr Kwality walls

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LUXLUX-- IntroductionIntroduction

Lux stands forpromise of beauty & glamouras one ofIndias mosttrusted personal care brands.

Lux soap was launched inIndia in 1929.

Lux is the largest personal wash brand in thecountry with a valueshare of 15%.

Threein every fiveIndianconsumers enjoy the luxurious bathingpleasure ofLux during thecourse of a year.

It has been winning hearts ofIndianconsumers for last 80 years.

Itisconsideredasreliable & trustworthy.

Itranks firstin the list ofIndias most trustedbrands & the othersareColgate, Rin, ThumsUp, Dettol, Fair& Lovely, Surf, Coca Cola,

Pepsi, Horlicksin the order from second to tenth.

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Originof Lux:Originof Lux: Lux soap waslaunched in India in 1929. Thename "Lux" was chosen astheLatin

word for "light" and because itwassuggestiveof "luxury. Lux soap was first launched intheUK in 1899 as a flaked versionofSunlight soap.

Subsequently itwas launched inthe US in 1916, and marketed as a laundry soap targetedspecifically at'delicates'. Lever Brothers encouraged womento home launder their clotheswithoutfear ofsatins and silks being turned yellow by harsh lyesthatwereoften used insoaps atthetime. The flake-typesoap allowed the manufacturer some leeway from lyebecause itdid notneed to beshaped intotraditional cake-shaped loaves asother soapswere. The resultwas a gentler soap thatdissolved more readily and was advertised assuitable for home laundry use. Lux is currently a productof Unilever.

Lux wasfirst introduced as a toilet soap in 1925 in U.S.A. Produced by LeverBrothers, itarrived inthe UK in 1928, offering people a chanceto pamper themselves for a

modestprice. From the 1930s rightthrough tothe 1970s, Lux soap colours and packaging were altered

several timesto reflect fashiontrends. In 1958 five colours made up the range: pink,white, blue, green and yellow. People enjoyed matching their soap with their bathroomcolours. This updation was becauseof establishmentof HURC in Mumbai & Bangalore

Lux toilet soap was introduced as a bathroom soap intheUS in 1925, and intheUKin 1928 as a brand extensionof Lux soap flakes. Subsequently Lux soap has beenmarketed inseveral forms, including handwash, shower gel and cream bath soap.

Inthe early 1990s, Lux responded tothe growing trend away from traditional soap bars by

launching itsown rangeofshower gels, liquid soaps and moisturising bars. Lux beautyfacial wash, Lux beauty bath and Lux beauty shower were launched in 1992.

In2004, the entire Lux range was relaunched in the UK to include fiveshower gels,three bath products and twonew soap bars. 2005 saw the launch ofthree exciting newvariants with dreamy namessuch as Wine & Roses bath cream, Glowing Touch and

Sparkling Morningshower gels. Lux has recently launched itstwo fruitextractvariants New Lux Strawberry & Cream and

Lux Peach & Cream contain a blend ofsucculentfruits & lusciousChantilly cream. The mostrecentaddition inthe brand is Lux Crystal Shine.

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Advertising Strategy:Advertising Strategy: Lux star traditionstarted in 1934,with actress Leena Chitnis.

Bollywood filmstars also promotes its beauty soap. Har star Lucky star offer.

The beauty soap of film stars.

Lux celebrating range.

Chocolateseduction.

Aromatic glow. Lux whitestar body wash.

SRK-firstIndian male brand ambassador.

Win 22-caratgold coin.

Win a lucky date with Aish.

Present& future plan:

Penetrate in rural segment.

Increase in marketshare.

Trap the untrapped category.

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Brand Ambassadorsof LuxBrand Ambassadorsof Lux

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Brand ambassadorsof Lux forBrand ambassadorsof Lux fordifferentcountries:differentcountries:

Hollywood Dorothy Lamour, JoanCrawford, Laurette Luez, Judy Garland, Cheryl Ladd,Jennifer Lopez, Elizabeth Taylor, Demi Moore, Sarah Jessica Parker,Catherine Zeta-Jones, Rachel Weisz, Anne Hathaway, Marilyn Monroe&Paul Newman.

BollywoodMadhubala, Mala Sinha, Hema Malini, Sridevi, Madhuri Dixit, Juhi Chawla,

Karisma Kapoor, Rani Mukerji, Aishwarya Rai, Amisha Patel, Kareena

Kapoor , Tabu, Priyanka Chopra, Shahrukh Khan.

Pakistan Reema Khan, Meera, Aaminah Haq, Babra sharif, Ali Zafar.

Nepal Jharana Bajracharya

Nigeria

Norway

Genevieve Nnaji, Patti Boulaye.

Iman Ali.

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Product life cycleProduct life cycle

The course of a products sales and profits over its lifetime is called the product lifecycle.

PLC shows the stages that products go through from development to withdrawalfrom the market.

Product Life Cycle (PLC): Each productmay have a different life cycle.

PLC determines revenue earned.

Contributes to strategic marketing planning

To identify when a product needs support, redesign, renovating , withdrawal, etc.

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IntroductionstageIntroductionstage Lux launched the worlds first mass-market beauty soap in the US in 1925 & had bee n

launched in India in 1929.

At that timethere was only one competitor of Lux, which was from its own brand LIFEBUOY.

In the initial stages Lux was introduced in the major cities of INDIA like Kolkata, Mumbai etc.

MARKETING OBJECTIVES - was to create the product awareness and to attract thecustomers towards the product.

The Lux MARKETING STRATEGIES in the initial stages :

Product = They offer only one product in the market. They did not come up with thedifferentiated product.

Price = In the initial stages of the product, they offer the relatively higher pricethan theircompetitor (LIFEBUOY). Because, they want to recover their initial cost of making the product.

Advertising = In the initial stages, they allocate more advertising budget so thatmore andmore customers could be attracted towards the product.

In ads they targeted theearly adopters, who were readiest to buy the product.The firstambassador, Leela Chitnis.

Distribution = was selective and only covers the major cities of INDIA to get recognition inthose cities.Their distribution channel was through: Manufacturer Wholesaler & Retailer

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Growth stageGrowth stage

In the growth stage, their sales rapidly started rising. They have expanded their market to theother cities of INDIA.

MARKETING OBJECTIVES = The marketing objectives ofthe Lux wereto expand theirmarket to theother cities of INDIA.

Another objective was to maximize more market share.

In the growth stage, company had the following MARKETING STRATEGIES :

Product = In the growth stage, the company had offered the same product in themarket.

Price = In this stage, the company had changed their priceto some extent becauseofmaximizing the market share. ( Slightly cutdown the prices )

Advertising = Inthe growth stage, they had increased their advertising budgetas intheinitial stages becauseof attracting thenew customersor to retainthe existing customers.

Sharmila Tagore, Hema Malini, ZeenatAmaan, JuhiChawla, MadhuriDixit,Sridevi.

Distribution = Inthisstage, company had expanded their markettotheother citiesofINDIA. Their distribution channel wasthesame as inthe initial stagesofthe product.

Promotion = Inthe growth stage, the company had also used the differentproportioningstrategiesto attractthenew and the existing customers.

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Maturity stageMaturity stage They modified the productby adding some changes in the product. In this stage, few competitors enter into t he market like ( CINTHOL, FAIRGLOW,

SANTOOR, CHANDRIKA, FIAMA DI WILLS and VIVEL ). The company has expanded their market to almostall the cities of INDIA.

MARKETING OBJECTIVES = The marketing objectiveof Lux is to maximize more profitwhile defending the market share and to expand the market to all the cities of INDIA.

MARKETING STRATEGIES In this stage are based on: Product = The Lux has madethe modification in the productby introducing:

LuxA

lmond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Sandalwood, LuxRose, Lux International, Lux Chocolate, Lux Aromatic Extracts, Lux Oil andHoney etc

Price = The Lux products arenow available at higher prices in the market, the reasonbehind is that the companys marketing objectives is to maximize more profit.

Distribution = Now Lux products are available in almost all the cities of INDIA. Theirdistribution channel is same as in the initial stage.

Advertising = Inthisstage Lux advertising has been reduced tosome extentbecauseofthe more brand awareness inthe mindsof customers.Recently, they haveshown Aishwarya Rai , Kareena Kapoor, Priyanka Chopra &Shah Rukh khan .

PROMOTIONAL OFFERS :Like buy3 get 1 free.

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DeclinestageDeclinestage

Besides of all campaigns for thesales promotionofLux .The reasons for itsdecline are:

1. Currency fluctuations: Unilever products are in over 100 countriesworldwide, As a result, it is exposed to adverse currency fluctuations.

2. SLOWDOWN: In year 2008 - 09 dueto hard economic conditions in INDIAand other countries the sales were highly affected as the consumer startedlooking for some alternate products with a cheaper pricethan Lux.

3. Competition: Lux has been facing competition from HUL itself (Lifebuoy) &from other companies like:-

Godrej Consumer Products : GCPL, Indias second largest soap maker with9.2% market share with leading brands such as CINTHOL, FAIRGLOW &NIKHAR. Fairglow brand, India's first Fairness soap, has created marketing

history as oneofthe most successful innovations.

Wipro : The presenceof Wipro inthetoiletsoap industry can beseenthroughtheir brandssuch asSANTOOR and CHANDRIKA. Inthesouthern marketofIndia, it is a major marketplayer intoiletsoap.

ITC : Itentered thesegment lastyear and has made a strong headway in a shorttime by growing to 1.75% in just five months. With the brands like: Superia,

Fiama Di Wills andVivel.

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Marketcaptured globally by LuxMarketcaptured globally by Lux Asia:33.40%

Latin America:5.30% Africa:2%

North America:22%

East& Central Europe:2.30%

Western Europe:31%

Middle East:3%

Australia& Pacific:1.10%

Marketshareof HULMarketshareof HUL

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SWOT Analysisof LuxSWOT Analysisof Lux STRENGTHS Strong Market Research (door to door sampling is doneonce a year in Urban and

Rural areas) Many variants (Almond Oil, Orchid Extracts, Milk Cream, Fruit Extracts, Saffron,

Sandalwood Oil, and Honey toname a few) Strong sales and distributionnetwork backed by HUL. Strong brand image Positioning focusesonthe attractive beauty segment Dynamically continuous innovationofthe productand brand rejuvenation new

variants (Aromatic Glow and Chocolate Seduction and Lux White Spa body wash) and

innovative promotions (22 caratgold coin promotion Chance Hai) Perceived to have high value for money (strong brand promotion butrelatively lower

price which is a winning combination inthe popular segment) Though it is in popular segment, it is having mass appeal/marketpresence across all

segments (15% ofthesoap market captured by Lux (sales / volume). Unique advantageof having accessto resources and assetsof HUL.

WEAKNESSES Lux is mainly positioned as beauty soap targeted towards women, hence it lacks

unisex appeal. Usage rate/ wear rate is high and is generally mushy and soggy. Some variants likethesunscreen, International variantdid notdo well inthe market . Certain advertisements likethe recentone with Shah Rukh Khan resulted in

controversial interpretationsofthe messageofthe advertisementand lead tosomelossof focus (of messageofthe advertisements).

Stock outproblems - replenishmenttime is high insemi-urban/rural areas. Earlier positioning asthe soap ofthestars hassomewhat alienated the brand from a

portionofthe consumers especially in rural areas.

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OPPORTUNITIES Soap industry growing by 10% in India. Beauty segmentsCompounded Annual Growth Rate (CAGR) is very high. An

indicationofthis isthatFair and Lovelyssegment is increasing ata fastrate - Luxmustreinforce its presence inthe beauty segment.

More promotions like price-offs and samples. Retentivestrategy required asthesoap segment is inthe maturestageof its product

life cycle. Line extension probably with more variants catering tothe beauty segment like

natural, herbal soap etc. Liquid body wash is currently inthe growth stage Lux should comeout with more

variants inthissegment. Level ofservicing is high during sales promotionschemes this could be brought

down. It has a large marketshare and hence has a strong hold over the market.

THREATS New entrants/local competitors/ MNCs would increasethe competition (Camay, P&G). High internal competition Pears also catering the beauty segment (also from HLL

stable). Excessive dependenceon beauty segmentmakes Lux vulnerableto changing

customer tastes. Technological change makesthe existing productsobsolete Lux should focuson

technological innovations like Body Wash. Its inthe maturity stage inthe Product LifeCycle and has a threatofslipping downto

declinestage if constant reinventionofthe brand isnotcarried out.

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Competitorsof LuxCompetitorsof Lux

Godrej Consumer ProductsGCPL, Indiassecond largestsoap maker after Hindustan Unilever Ltd, hasnearly9.2% marketshare. With 11% marketshare in valueterms, it isthesecondlargestsoap maker after Hindustan Unilever. Godrej Consumer Products (GCPL) isa major player inthe Indian FMCG marketwith leadership in personal, hair,household and fabric caresegments. The company isone among the largestmarketer oftoiletsoaps inthe country with leading brandssuch asCINTHOL,FAIRGLOW, NIKHAR, & ALLCARE. Fairglow brand, India's firstFairnesssoap,

has created marketing history asoneofthe mostsuccessful innovations. It is alsothe preferred supplier for contractmanufacturing oftoiletsoaps, someof whicharethe mostwell-known brands inthe country.

WiproInthe Indian market, Wipro is a leader in providing IT solutions and services for

the corporatesegment in India. Wipro also has a profitable presence inniche

marketsegmentsof infrastructure engineering, and consumer products &lighting.Wipro has made a large acquisition intheConsumer Care business. Thepresenceof Wipro inthetoiletsoap industry can beseenthrough their brandssuch asSANTOORand CHANDRIKA. With industry leading organic growthrates and the acquisition, Consumer care business has reached a Revenue runrate in excessof $100 million per quarter.

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Procter & Gamble India

Procter & Gamble India (PGHHCL) was incorporated in 1964 after Procter &Gamble, US, acquired Richardson Vicks, US. Formerly known as RichardsonHindustan (the Indiansubsidiary), itwas later named as P&G. Itchanged itsnameagain in 1998 to Procter & Gamble Hygiene and Health Care inorder to reflectthenature and character ofthe businessofthe company. During 2004-05 the

company has increased its installed capacity of Soaps & Detergents and ToiletPreparations etc by 36500 Tonnes and 263 Tonnes respectively. With thisexpansionthetotal installed capacity of Soaps & Detergents and ToiletPreparations etc has increased to 108500 Tonnes and 5875 Tonnes respectively.

Nirma

Incorporated as a private limited company, Nirma was converted into a deemedpublic company and thento a public limited one in Nov.'93. Nirma has aleadership presence in Detergents, Soaps and Personal Care Products. To have agreater control onthe quality and priceof its raw materials, Nirma undertookbackward integration into manufactureof Industrial Products like Soda Ash, Linear

Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerine andSulphuric Acid. During 1996-97, Nilnita Chemicals, Nirma Detergents, NirmaSoaps and Detergents, and Shiva Soaps and Detergents were

amalgamated with the company. The company created 'Nirma Consumer CareLtd.' - a wholly owned subsidiary on 22nd Aug.'97, which isthesole licenseeofthe brand name'Nirma' within India. Nirma enjoys a shareof6.74% in soaps.

ITC

ITC, the countrys largestcigarette maker, entered thesegment lastyear and hasmade a strong headway in a shorttime. According to AC Nielsen, itsshare has

grown to 1.75% in just five months despitethe factthatmany of its brandssuch asSuperia, Fiama Di Wills and Vivel are currently sold inonly six states.

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Conclusion:Conclusion: Today, HUL isoneof Indias Largestexportersof branded FastMoving Consumer

Goods. It has been recognized by the Governmentof India as a Golden Super StarTrading House.

Itmust follow its currentstrategy in futuretoo.

Lux has high penetration in urban & semi-urban areas. However, ithasonly 19.8%penetration in rural areas.

Itenjoyssound financial position & high profits from thissector.

Customers have 100% faith onthis product.

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