Contents:
Company Profile – HUL Distibution Channel - HUL Product Mix – HUL Overview – Lux Soap Marketing Mix SWOT Analysis Competitor Analysis Market Segmentation
Recommendation Reference
Company Profile - HUL
• A 52% owned subsidiary of Anglo Dutch giant Unilever.
• India – 1888
• India largest FMCG company
• Touching 2 out of 3 Indian consumer
• 20 distinct categories – Home and personal care products, food and beverages.
• HLL – HUL
• 100 factories – India – Manufacturing its diverse product range
• Headquarter: Mumbai
• Market share – Toilet soap category – 54.3%
Distribution Channel - HUL
2000+ Suppliers and associates
4000 Redistribution stockists
Covering 1 million retail outlets
Reaching 250 million rural consumers
The width of the HUL 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 careDeodorantsColour cosmeticsAyurvedic personal and health care
The lenght of the HUL 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, RexonaLaundry: Surf excel, Rin, Wheel Skin care: Fair & Lovely, Ponds, Vaseline, Aviance Oral care: Pepsodent, Close upDeodorants: Axe, RexonaColour cosmetics: LakmeAyurvedic personal and health care: Ayush
Shampoo: Sunsilk, Clinic
Tea: Broke bond, Lipton.Coffee: BruFoods: Kissan, Annapurna, Knorr Ice cream: Kwality walls
Width = 30
The Depth of the HUL 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 HUL 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.
HUL Product line are not consistent because of its large width.
Overview : Lux Soap
1916 – Laundry soap
1925 – Bathroom soap
India – 1929
First brand ambassador: Leela Chitnis (1929)
Market share is almost equal to Lifebuoy
Product:
Product Classification:
TangibleNon durable good
Lux and other soaps fall into the category of convenience good.
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 5
Place:
HUL 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
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 Aishwarya rai.
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 HUL
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 IndiaBeauty segments compounded annual growth rate
(CAGR) is very highLiquid body wash is currently in growth stage – Lux
should come out with more variants in this segmentLarge market share – Strong hold over the market
Threats:
High internal competition (Pears – Beauty segment)
New entrants (Vivel)
Maturity stage – threat of slipping down to decline stage – if constant reinvention is not carried out
Internal Competitor:
Lifebuoy: 1895, 18% Market shares
External Competitor: Godrej consumers products limited (GCPL): 2nd Largest soap maker after HUL9.2% Market shareBrands: Cinthol, Fairglow, Nikhar
Wipro:
Brand: Santoor (No 1 in AP) and Chandrika
ITC:
1.75% growth in initial five months
Brand: Superia, Fiama di wills and Vivel
Sold in six states
Market segmentation of Lux
Gender: FemaleAge: 16-35 Income: Middle income group (Rs. 15 to 20)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 HUL: 54.3% Market share of LUX: 15% Better Positioning – Market leader of beauty soap
References:
www.capitaline.com www.hul.com www.google.com www.wikipedia.com www.mbaparadise.com www.fmcg.com