Report+

LUX brings out the star in you!

ACKNOWLEDGEMENT

We would like to thanks Miss Samreen awais khan for assigning such an interesting

project which has really explored our real talent and it helped us to make projects for our

professional life.

It has been really knowledge sharing experience to make this project. We would also

like to thanks Mr. Mudassar and Mr.ramadan the project sells officers LUX Pakistan for

helping us to make us better known what basically marketing mix of LUX is.

1


Table of Content

Topic Page No.

1. Objective of this project……………………………………………….4

2. Methodology of this project……………………………………..........4

3. History of Lux……………………………………………..….……....5

4. Ownership…………………………………………………………....5

5. Traget Customers……………………………………………….……6

6. Product related attributes………………………………………….….6

6.1:AlmondOil………………………………………………………………………………..………6

6.2:CocoaButter……………………………………………………………………………….…….6

6.3:Colorants…………………………………………………………………………...................6

6.4:DistilledWater…………………………………………………………………………….…….6

6.5:Emulsifier …………………………………………………………………………….….….6

6.6:FragranceOil…………………………………………………………………..……….……7

6.7:Glycerin……………………………………………………………………….…………...…7

6.8:SodiumHydroxide..............................................................................................7

6.9:MonoideTahiti……………………………………………………………….……..…..….7

6.10:OliveOil……………………………………………………………………………..…..…7

6.11:VitaminE……………………………………………………………………………....….7

7. Brand Element……………………………………………………….…...8

7.1:Memorability …………………………………………………………………..….…8

7.2:Meaningfulness…………………………………………………………………..…..8

7.3 Likability………………………………………………………………………….…8

7.4:Transferability…………………………………………………………………….…9

7.5:Adaptability……………………………………………………………………….…9

7.6:Protectability………………………………………………………………………...9

8. Brand portfolio………………………………………………………….10

2

http://www.mommamuse.com/tag/sodium-hydroxide/


9.Communication………………………………………………………….10-11

10. Lux Pricing and distribution…………………………………………...11

11. A positioning map of the company…………………………………….12

12. POP’S and POD’s ……………………………………………………..13

12.1 :Point of Purchases………………………………………………………………13

12.2 :Point of displays……………………………………………………………….…..13

13. Competitors of Lux…………………………………………………….14

13.1 Internal Competitor.............................................................................................…...14

13.2 External competitor………………………………….……………………………...14

14. Customer Knowledge Structure………………………………………..15

15. Sources of Brand Equity……………………………………………….15

16. Brand Mantra’s Of LUX……………………………………………….15

17.CBBE Pyramid Model………………………………………………….16

17.1 Resonance…………………………………….……………………………………..17

17.2 Judgment…………………………………….………………………………………17

17.3 Feelings……………………………………….…………………………………….17

17.4 Performance………………………………….……………………………………..17

17.5 Imagery…………………………………..…………………………………………17

17.6 Salience…………………………………………………………………………….18

18. Major Issues……………………………………………………………18

19. SWOT Analysis of LUX………………………………………………19

19.1 Strength……………………………………………………………………………..19

19.2 Weakness……………………………………………………………………………19

19.3 Opportunities………………………………..………………..……………………..20

19.4 Threats…………………………………………………..…..………………………20-21

20. Brand strategies…………………………………………………………21

21. 4 P’s Of LUX…………………………………………………………...21

21.1 Product………………………………………..……………………………………....21

21.2 Price…………………………………………………………………………………..21-22

21.3 Place…………………………………………………………………………………..22

21.4 Promotion……………………………………………………………………………..22

22. Recommendations………………………………………………………..23

23. Conclusion……………………………………………………………….24

24. References………………………………………………………….……25

25. Appendix…………………………………………………………..……26

3


1. Objective of this project

This project is an outcome of an analysis of lux brand by Unilever Pakistan Ltd. The

main purpose of the project is to find what strategies the company uses to market its world

famous beauty soap, LUX, in Pakistan; the positive and negative aspects of those strategies..

The project discusses the process of using market segmentation, target marketing, the

product, pricing, promotional and distribution strategies and a competitive analysis as well as

customer based brand equity of lux.

2. Methodology of this project:

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

strategies of Unilever Pakistan Ltd. Most of the information used in this project is from

primary Sources. The main source of information was the focus group discussion. In addition

information was also collected from websites and collected through the distributors of lux

situated in millat chowk and iqbal stadium.

4


3. History of Lux

Lux soap was first launched in the UK in 1899 as of Sunlight soap. After this it was

launched in the US in 1916, and marketed 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 harsh lyes that were often used in soaps at the time.

Into. . The name "LUX" was chosen as the Latin word for "light" and because it was

suggestive of "LUX."

Lux was introduced as bathroom soap in the US in 1925 and in the UK in 1928 as

a brand extension of LUX soap flakes. Subsequently LUX soap has been marketed in several

forms, including hand wash, shower gel and cream bath soap.

4. Ownership:

Unilever is one of the world’s largest and leading multinational companies; Unilever

commenced their business activities on a larger scale by setting up their first factory in

Netherlands, in the year of 1872. . 90% people are using the products of unilever in Pakistan.

Unilever is providing different types of products in this way :

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

5

http://en.wikipedia.org/wiki/Brand_extension

http://en.wikipedia.org/wiki/Latin

http://en.wikipedia.org/wiki/Lever_Brothers

http://en.wikipedia.org/wiki/Sunlight_soap


5. Target customers

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

Pakistan population. A research carried out by Unilever Pakistan 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.

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 category A, B and C, because they are assumed to be financially well-off

and can afford to buy LUX.

6. Product related attributes:

6.1:AlmondOil

- An excellent skin softener and moisturizer. Almond oil is great for all skin types but

especially beneficial for dry or irritated skin.

6.2:CocoaButter

- Cocoa Butter is absorbed quickly into the skin to soften, lubricated, moisten and nutrients

the skin. Works great to prevent and treat scars, stretch marks, and damage skin.

6.3:Colorants

- We use a combination of micas, oxides, spices, and clays to achieve colors in our products.

6.4:DistilledWater

- We always used distilled for safety and purity.

6


6.5:Emulsifier

- Because lotion is made with mixture of both oil and water, an emulsifier is necessary to

blend and hold the two together. We have chosen a natural self-emulsifier which helps to

provide a natural moisturizing factor found in the skin. Our emulsifier provides a

conditioning and softness to the skin.

6.6:FragranceOil

- Fragrance oils are added in small enough quantities to not be an irritant for most people.

Yet, we add enough to give a light scent which, in your favorite fragrance, you willl have a

hard time resisting the urge to sniff your hand (again and again!).

6.7:Glycerin

- Glycerin is a humectant, meaning it draws moisture to the skin. To moisturize the skin,

keepingit soft. Good stuff.

6.8:SodiumHydroxide

- This is the chemical used to make soap. Without this chemical, there is no soap, period.

Sodium hydroxides causes a chemical reaction called saponification. Once saponification is

complete, the finished product is soap – and there is no lye in the finished product. You will

see sodium hydroxide on our ingredient list, however another way to list it is as a saponified

oil –

6.9:MonoideTahiti

- A moisturizing and naturally fragrant oil, which quickly penetrates the skin acting as a

natural barrier helping prevent dehydration (and wrinkles) of the skin. A wonderfully,

naturally scented oil excellent for all skin types.

6.10:OliveOil

- A moisturizing oil used in soaps – castile soaps are generally 100% olive oil, but there is no

7

http://www.mommamuse.com/tag/sodium-hydroxide/


requirement as to what percentage must be used. It softens skin while attracting moisture to

your skin. Makes for a mild soap which keeps your skin soft, supple and younger looking.

6.11:VitaminE

- A natural skin antioxidant, promoting healthy tissue

7. Brand elements

There are six elements of Lux soap and they are as under.

7.1: Memorability

Lux is easily recognized and pronounciated.

Lux name is very short.

Logo of Lux is very simple and attractive.

Due to these factors Lux brand has strong memorability the in mind of customers.

7.2: Meaningfulness

Lux word is persuasive but not descriptive .Its meaning is light.

7.3: Likability

Lux is more likable among the customers due to the following factors.

Affective advertisements

Popular celebrities\

Features

Freshness

Colors and packaging

Sponsorship and events

Lux campaigns

Suitable pricing

8


7.4: Transferability

Lux is easily transferable from one geographical region to another

7.5: Adaptability

Lux is well flexible brand it accepts changes easily

Available with novel changes after a short period of time and it is the requirement of

Lux brand.

Its ingredients and packaging changes with time to time

7.6: Protectability

It is legally recognized

It has proper licensing

Its patents and copy writes are reserved

Its trade mark is also legally protected

9


8. Brand portfolio

Lux shampoo & conditioner

Lux liquid soap

Lux hairspray

Lux shampoo

Lux Shower jel

Lux hand wash

9. Communications:There are number of Sources available for passing the product message. These are as

follows;

Television

Outdoor (Billboards)

Magazines

Newspapers

Brochures

10


Internet

LUX has been widely advertised in Pakistan ever since the brand was introduced.

Pakistani models including Reema Khan, Meera, Aaminah Haq, Babra sharif and various

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.

10. Lux Pricing and distribution

Unilever Pakistan 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 price 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.

11

http://en.wikipedia.org/wiki/Ali_Zafar

http://en.wikipedia.org/wiki/Lux_Style_Awards

http://en.wikipedia.org/w/index.php?title=Lux_Style_Ki_Duniya&action=edit&redlink=1

http://en.wikipedia.org/wiki/Pakistan

http://en.wikipedia.org/wiki/Babra_sharif

http://en.wikipedia.org/wiki/Aaminah_Haq

http://en.wikipedia.org/wiki/Meera_(actress)

http://en.wikipedia.org/wiki/Reema_Khan


11. A positioning map of the company is

12

Market Share


12. POP’S and POD’s

12.1: Point of PurchasesThe LUX is not given a notable placement on the shelves of different 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.Lux is available in large quantity in metro

super store ,Emart ,Al -fateh ,bombino,city mega mart etc and well decorated in isles.

12.2: Point of displays

Pod’s are playing a major role to leaver up the brand equity of LUX in E-mart LUX is

displayed in proper racks provided by the uniliver and LUX has occupied a complete U-turn

in E-mart. LUX is displayed in proper asiles at Al-Fatah to capture the attention of the

customer. LUX is also showed at the top in the sb and family mart.

13


13. Competitor of LUX

13.1: Internal competitor

Lifebuoy:

Lifebuoy is introduced in 1895 and it is owned by uniliver company .It has 18%

market share in the bathing category. It was around 2002 that the product moved from being

a hard soap to a mild soap that delivered a significantly superior bathing experience. The new

soap had a refreshing fragrance and its overall positioning changed, painting its promise of

health in softer, more versatile and responsible color—for the entire family. The packaging

was also changed: The rugged looking packs were soon replaced with a softer pinkish cover.

This was followed by a series of ads highlighting the soap’s germ-fighting benefits.

Lifebuoy had become a family soap with hygiene as its core promise. Right from the

early days, the brand has preferred effective communication to celebrities. The USP of life

buoy is now a days “ Koi Dar Nahi”

13.2: External Competitor

Hoor beauty Soap

Hoor beauty soap is a local brand it is prepared by Azhar Corp. Its target market is

also females this brand emphasis on it keeps the skin fresh and glowing its brand mantra is “

hoor hi mujhy hoor banaye” this brand is communicating through electronic media,out

door advertising and vehicle advertising. Its brand ambassador is Pakistani film star

Resham .Its distribution through direct channels. They are positioning through small

retailers.Another competitors of LUX brand are Pakeeza,Palmy and Capri. They all are

providing suitable and affordable prices to customers.

14


14. Customer knowledge structure:

We have conducted a survey by using questionnaire techniques . we have compile the

information in this way regarding brand. Consumers of LUX brand are mostly savvy

customer they have a lot of knowledge and awareness about the brand. They know about the

advertisement of LUX with high priced brand ambassadors .They have strong image and

registration about the brand due to its corporate name , logo , attractive packaging , Pop’s and

Pod’s . They also know about the promotional schemes of LUX like LUX style

award.Customers are educated now a day so they also know about the targeting of LUX.

(survey questionnaire are attached end of the report)

15. Sources of Brand equity:

The brand equity of LUX exists due to the following reasons in the mind of consumers

Company repute

Unique features

Packaging

Great awareness and familiarity

Latest advertisements

High standard Retailer e.g E-Mart , Al-Fatah

POP’s and POD’s

Promotions

Concerts of LUX

Celebrity endorsement

16. Brand Mantra’s of LUX

“Khoobsurti ka raz ub ap k pas”

15


“Beauty begins with LUX”

“LUX brings out the star in you!”

17. CBBE Pyramid

16


17.1: Resonance:

Customer feels proud by using LUX

They feel it is special for us

They really love and want LUX

They purchase the brand whenever they go to store

They really like to use LUX

17.2: Judgment:

Customer judgment regarding brand are as an under

Quality is good

Packaging is attractive

Features are outstanding

Decent and attractive of LUX

17.3: Feelings:

Customer gets excited while using LUX

They feel warmth feelings

They feel freshness

They feel they are more beautiful

17.4: Performance:

It smoothen our skin

It fairs face completion

17.5: Imagery:

Customer continuously using LUX whenever goes to store

Brand personality of LUX is very attractive

Customer experience is good with LUX

17


Customer loves that people really who use LUX

Retail store are the best places to buy LUX

17.6: Salience

It satisfy all the needs and wants of female

18. Major issues

For Sales growth they need highly intensive distribution and strong promotions

Uniliver is facing competition from P & G as on the base of different brands market

share

Uniliver has to maintain its difference from other brands as creating unique values

that others are not giving with core product.

Sales growth is possible when product remain at fixed price for a specific time period

and this depend on cheapest raw material handling and its transporting

Latest advertisement of Palmolive ,Capri , palmy and hoor soaps

Huge budget for advertising

Huge investment on packaging

Economic crisis

18


19. SWOT analysis of LUX

19.1:STRENGTHS

Strong Market Research (door to door sampling is done once a year in Urban and

Rural areas)

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

Sandalwood Oil, and Honey to name a few)

Strong sales and distribution network

Strong brand image

Positioning focuses on the attractive beauty segment

Perceived to have high value for money (strong brand promotion but relatively lower

price which is a winning combination in the popular segment)

Though it is in popular segment, it is having mass appeal/market presence across all

segments (43% of the soap market captured by Lux (sales / volume)

Unique advantage of having access to resources

19.2: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

19


Certain advertisements like the recent one with Shah Rukh Khan resulted in

controversial interpretations of the message of the advertisement and lead to some

loss of focus (of message of the advertisements)

Stock out problems - replenishment time is high in semi-urban/rural areas

Earlier positioning as the “soap of the stars” has somewhat alienated the brand from a

portion of the consumers especially in rural areas.

19.3:OPPORTUNITIES

Population growth rate.

High urbanization rate.

High literacy rate.

Soap industry growing 10% in Pakistan

Lux must reinforce its presence in the beauty segment

More promotions like price-offs and samples

Line extension

Liquid body wash is currently in the growth stage – Lux should come out with more

variants in this segment

Level of servicing is high during sales promotion schemes – this could be brought

down

It has a large market share and hence has a strong hold over the market

19.4: THREATS

High inflation rate.

Change in manufacturing technology.

Low purchasing power.

Decrease in GDP growth rate.

Increasing interest rates.

Decreasing investment.

20


Recessionary period in business cycle

Instability In Pakistan

Terrorism in Pakistan

New entrants/local competitors like hoor, palmy, pamolive, Camay and Capri would

increase the competition

Political effects

Legislation effect

High internal competition – Pears, life buoy also catering the beauty segment

Excessive dependence on beauty segment makes Lux vulnerable to changing

customer tastes

It’s in the maturity stage in the Product Life Cycle and has a threat of slipping down

to decline stage if constant reinvention of the brand is not carried out

20. Brand Strategies:

Provide high quality at reasonable prices

Increase market share through different flavors and packaging

Promote the brand with latest advertising by using renowned and high priced

celebrity endorsement

To beat the competition by introducing further products of brand

Leaver up the brand through flanker products

21. 4 P’s of LUX Brand

21.1: ProductLUX is an internationally renowned beauty soap brand of Unilever. Though

manufactured in Pakistan for the local market by Unilever Pakistan 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 Pakistan from imported

raw materials like abroad. Sodium soap, glycerol and different extracts according to flavors,

coming from Unilever plants situated

LUX is offered in Pakistan in six different flavors which are: LUX Energizing Honey,

LUX Golden Glow, LUX Nature Pure, LUX Orchid Touch, LUX Almond Delight and LUX

21


Aqua Sparkle. Taking into account the convenience of its customers, the company

manufactures all flavors of LUX in three different sizes, 40gm, 80gm and 120gm.

21.2: PriceThough Unilever Pakistan 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 Pakistan. A change in price has a high

risk of creating price war among the rivals which will eventually cause a loss of profit. Its

prices are almost equal to its competitor. If we compares LUX’s price with its major

competitor. Company carries out research on competitors’ price and brand loyalty when it

feels extreme necessity of changing price.

21.3: Place

Unilever Pakistan 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 in

Pakistan, where the product goes after they are 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 third party distributors, exclusively dedicated to

Unilever Pakistan Ltd. These distributors then supply the product all over Pakistan 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 Pakistan because of a recent

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

21.4: Promotion:

Unilever is giving more concentration on its promotional activities to market its brand

. It spends almost 20% to 25% of its Net Proceeds from Sales (NPC) of LUX for promotional

activities for LUX. They do not only promote LUX in Pakistan for the beauty conscious

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

world famous male celebrity Shahrukh Khan for their advertising campaign.

Unilever Pakistan 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.

22


22. Recommendations

In this project as a marketing manager (sadia &Ruqia) suggest some

recommendations to Unilever Pakistan Ltd. to adopt more successful operation in Pakistan.

Since a huge portion of the rural poor people is demanding LUX in recent days, Unilever

Pakistan Ltd should expand their target market also towards the rural people. They should

also conduct different promotional activities in rural fairs and socially responsible

promotional activities to attract rural consumers and social awareness .Because LUX has

different skin type soap so now if they provide different types of beauty soaps for male and

female soap under the same brand name i.e. LUX it might increase their sales and

Company should spend 60% budget on promotion and 40% on advertising in order to

leaver up the brand

LUX should not emphasis on beauty segments

Company should increase the number of warehouses for the purpose of in time

delivery

Company should conduct research through focus group to know the new ideas

regarding brand amendments

Company should use more and more print media to market its brand LUX

Company should change its brand slogan “LUX brings star in you “because in this

way customer perceive that the brand is only the choice of stars and for the celebrities

only

23


Fragrance should be changed on the behalf of customers

23. Conclusion

The beauty soap industry of Pakistan consists of a few producers in the industry. The

demand for this product is very much attractive in terms of pricing. Unilever Pakistan is

providing LUX. at a price which is affordable to most of the people in the country. Beauty

soap is an uprising product in Pakistan as a greater portion of the population, both male and

female, are now getting more beauty conscious. As a multinational company Unilever

Pakistan with heavy promotional activities, has been able to penetrate the market.

With six different fragrances, three different sizes, international standard and high

quality design, as a product, LUX has been highly successful over the years. Its distribution

process is highly efficient. Its promotional activities, like the beauty contest has been a

milestone in attracting a huge number of customers. Overall with its marketing activities

LUX has been a successful brand.

The only place where rival companies are progressing is in giving customers

redemption offers. Research revealed that Pakistani customers are highly attracted to this sort

of offers. These offers are not sustainable in the long run but still it takes away a considerable

part of LUX’s sale in the short run.

24


24. References

To check the positioning of LUX brand we visited the METRO,E-Mart,SB and Al-fatah

We also met the distributers of LUX brand Mr. Muddasar at Millat Chowk Office

We conducted one to one meeting with retailers to get information regarding the brand

We filed the survey Questionnaire from the market

Marketing Management by Kotler 12th Edition.

Principle of Marketing by Kotler.

http://www.unilever.pk

http://www.google.com

25

http://www.google.com/

http://www.unilever.pk/


25. Appendix

26


27


ww.docstoc.com/.../brand-audit-of-LUX-by-the-university-of-faisalabad-students-sargodha-road - Cached

28

http://webcache.googleusercontent.com/search?q=cache:JgI5nDW5X_MJ:www.docstoc.com/docs/33727818/brand-audit-of-LUX-by-the-university-of-faisalabad-students-sargodha-road+quality+development+of+lux+soap&cd=7&hl=en&ct=clnk

Documents

Report+