Launching of A Lux Facewash
Launching of A Lux Facewash
On
LAUNCHING OF LUX FACE WASH
(With reference to course, MARKETING
MANAGEMENT, MGT 514)
Submitted to:
Submitted by:
Dr. GIRISH TANEJA RAJIV GUPTA
ROLL NO: B34
SEC: RR1902
REG NO:
10901946
ACKNOWLEGEMENT
Last but not the least I would like to thank the Almighty
for always helping me
RAJIV GUPTA
Index
Company profile
Business Mission
Market Objective
Situation Analysis
SWOT Analysis
Marketing Strategy
Marketing Mix
Implementation, Evaluation and Control
Conclusion
LUX
Company Profile
Since 1929, Lux in step with the changing trends and evolving beauty needs of
the consumers, offers an exciting range of soaps and Body Washes with unique
elements to make bathing time more pleasurable. One can choose from a range
of skincare benefits like firming, fairness and moisturising.
Lux stands for the promise of beauty and glamour as one of India's most trusted
personal care brands. Lux Believes in passion for beauty .It continues to be a
favourite with generations of users for the experience of a sensuous and
luxurious bath. Lux believes that femininity shouldn’t be denied. Since its
launch in India in the year 1929, Lux has offered a range of soaps in different
sensuous colours and world class fragrances. Lux is a beauty soap of film stars;
Lux recognized the need for a compelling message about beauty that would
resonate with women of today.
• From the 1930s right through to the 1970s, Lux soap colours and
packaging were altered several times to reflect fashion trends. In 1958
five colours made up the range: pink, white, blue, green and yellow.
People enjoyed matching their soap with their bathroom colours.
• In the early 1990s, Lux responded to the growing trend away from
traditional soap bars by launching its own range of shower gels, liquid
soaps and moisturising bars. Lux beauty facial wash, Lux beauty bath and
Lux beauty shower were launched in 1992.
The name Lux means ‘light’ in Latin; however the name was chosen for its play
on the word ‘luxury’.
Business Mission
Lux is a leading toiletry brand of Unilever round the globe. With its un matched
quality and affordable price, the company is able to maintain its top position in
cosmetic industry. Lux is committed towards providing a good experience to its
customers with its long lasting fragrance and freshness. Now the company’s
mission is to launch a new product under its brand name i.e. LUX FACE
WASH for its urban and semi- urban female customers of age group 15-35.
Primarily the company will focus only on the female customers rather than for
both the genders.
2. The company will also launch the face wash with different ingredients
like with lemon extracts with aloe vera extracts and honey extracts etc.
Lux mission is to capture the Indian face wash market share by more than 18%
in the next 3 years by using its quality and pricing strategy. As the company is
coming up with a new product, it can become a brand leader in that product
category in the years to come.
The company’s ultimate mission is to provide a good quality face wash to its
target customers with a fairly competitive price than its competitors. The
company is already famous for its soaps, shampoos, shower gels and other
cosmetic items. These products are purchased by the people of almost all
income class. So if the company is charging high price for its face wash then it
will dilute its previous strategy of providing quality product at an affordable
price besides it will not be affordable by lower income class people. But in the
market, face wash are available from the price range of Rs. 60-300 which is for
both low income class people and high income class people. Lux’s mission is to
come up with a price that can satisfy the need of both types of customers with
maintaining its brand value.
Besides the company also aims at making the face wash easily available to its
target customers by its efficient distribution channel.
MARKETING OBJECTIVE
1. The company’s marketing objective is to capture the 18% of the face
wash market in coming 3 years.
3. The company would also like in creating a brand positioning in the mind
of the customers.
Lux is already a reliable brand among the people but that does not guarantee the
success of the new launch face wash. It has to be up to the mark and must be
competent with the products of the competitors in both the terms i.e. quality and
price.
Objective Metric: Capture 18% of the face wash market share in three years
Lux is having a good brand positioning in the mind of customers as its product
like soaps, shampoos, shower gels etc have already created a strong brand
image in the mind of customers and it also have a good market share in these
product category but in order to capture the market by its new launch face wash,
Lux has to come up with new ideas.
Objective Metric: Enter the rural market post three years of the launch.
The company after analysing the situation of its face wash in the urban and semi
urban market in the three years from its launch, it will enter in the rural market
creating the value of its product among the rural market.
Situation analysis
Trends
In a market where social acceptance and self-denial were the biggest barriers to
acceptance of cosmetics in India, Lux was the first brand that took the onus of
educating the Indian woman and breaking her myths about beauty and beauty
products. In 1981, Lux launched an ad campaign to help the Indian woman
discover not just the fine art of makeup but also the beauty that she possessed.
They use fair degree of all the communication vehicles across the board be it
print, television or radio, along with fashion events like Lux India Fashion
Week where the communication strategy is quite aggressive.
Industry Analysis
Our country India, with a people of more than billion, is a country of
dissimilarity. Our country’s urban or metropolitan populace is the major source
for demand of several beauty products. The more cosmetic utilization by Indian
women brought more competitors to Indian beauty sector.
Despite market crash, India remains one of the rapidly developing cosmetic
markets around the world, growing rate at 13% per year and worth at $6.3
billion. As the middle-class customer base, the market is touching closely four
times sooner than the $52 billion worth of established cosmetic markets and two
times as fast as the $270 billion worldwide market, according to new report by
marketing research organization Kline & Co. Presently, the market is bringing
in cosmetics in addition to toiletries and transitional raw resources value of
$120 million. The beautification market currently having $60 million of the
total market, at the same time as skin care market having around $180 millions.
The Indian beautification sector has witnessed fast development in the recent
two years, increasing at a Compound Annual Growth Rate(CAGR) of about
7.5% between 2006 to 2008,with recovering buying ability and growing fashion
realization, the market is expected to continue the growth drive (with addition
of subsidiary slowdown due to financial slowdown) during our prediction era
(2009-2012). It is planned to develop at a CAGR of about 7% during the
estimated era, says "Indian Cosmetic Sector Analysis (2009-2012)", a new
research details by RNCOS, In future Indian cosmetic market segments are
expected to record CAGR of just about 13% and 20% correspondingly till 2012.
According to growth rate, the market provides wide opportunities to local and
global players. Even with two times growth rate, the market penetration of
beautification products and toiletries products in our country is low. This low
market penetration for beautification and personal care commodities in India
gives an opportunity for additional important growth down the road in India of
1.2 billion populations.
Competitors
Competitors of Lux like Ponds, L’Oreal, Garnier and Lakme etc are competing
at the upper (premium) segment while Ayur, Clean and Clear, Himalaya etc are
competing at the lower segment. Besides these there are also other small players
dominating the rural market where these big players are not able to reach.
The companies like L’Oreal, Garnier, Ponds, Lakme have very strong brand
positioning. It will not be that easy for Lux to enter the target market of these
companies.
But since Lux is already a established brand so, it will not be that difficult for
the company to create its dominance in the lower market segment. The
company can also use its wide distribution channel to reach the market where
the other players lack.
Customer Profile
Lux will basically focus on the urban and semi- urban women of age group15-
35. This will include all the females from students to house wives to working
women. The company will primarily focus only on the female customer rather
than the male customers in its initial years. Since the students and house wives
cannot afford the premium segment product, Lux will target them as it main
customer in the initial year of its launch.
SWOT Analysis
The Strength, Weakness, Opportunity and Threat (SWOT) analysis provides a
snapshot of Lux’s internal strength and weakness and external opportunities and
threats.
Strengths
Weakness
Opportunities
Threats
Marketing Strategy
POSITIONING STATEMENT
We all like to look gorgeous and enjoy that confidence which makes us feel like
anything’s possible. And that's just what the Lux range offers you on a daily
basis – at a price you can afford. This is the positioning statement of Lux which
is based on the quality and affordability.
SEGMENTATION
Geographic
Behavioral
Demographics
• Age: 15 to 35
They targeted age 15 to 35, because they are the all time customers the
cosmetic industry
• Education: Students or graduates.
• Sex: female.
Marketing Mix
Product
Product Category:
Core benefit: Core benefit of LUX FACE WASH is easy to use, feel fresh for
the longer time, improves the confidence.
Potential product: Introducing the face wash for different skin types, like for
dry skin, oily skin and for rough skin.
Product Classification
Product Differentiation
Form: By offering the Lux face wash in various size and shape to attract
customers and giving more choices for customer. Give products in more variety
like face wash with honey extracts, lemon extracts, aloe vera etc.
Upper Market Stretch: Lux face wash is initially launched for the middle
income class customers. The company can come up with some other face wash
product to cover the upper class of market.
Price
Setting the Price
Promotional Pricing: Lux can use promotional pricing strategy like discounted
price at special events like women day, valentine day for college students.
Responding to Customer’s Pricing: The major competitors are Lakme, Ayur,
Ponds etc. if the competitors changes the price means the company has to
analyze the market situation and why the competitor changed the price
according to competitor’s price to sell the product.
Differentiated Price: Lux company can offer time pricing like special
discounts on occasions and image pricing. They can set the price according to
the quality and quantity of the product.
Promotion
Advertising and Sales Promotion
Advertising
Lux uses various medium to sell the products. Mediums are television,
magazines, events and internet. Lux organizes fashion event in that event,
company advertise their products. In television media, lux advertise as
commercial for lux in that, company advertises their products. Lux also releases
magazines there also they are promoting their products.
Lux sponsors the event film fare award, fashion week. Hence in those event
film stars and models are participating and from that company easily gets
promotion of their products.
Internet medium
The company has its own website for the promotion of its product in the global
market.
Sales Promotion
Lux offers sales promotion to increase the sales for particular time period.
Company offers rebates and discounts on the specific products which have low
sales volume.
Brand Ambassador
Place
There is a significant change in market distributional channel of cosmetic
products.
• Super market
• Shopping malls
• Departmental stores
These stores are opening their shops in smaller towns and cities and these shops
offer extensive range of products and frequently promotional offers.
• Drug stores
• Cosmetic soaps
• Beauty saloons
• Retail stores
Lux Company will also measure and analyze the customer’s attitude towards
competing brand and products.
With Brand awareness Lux will determine the effectiveness and efficiency of
the message and media.
Finally Lux will use customer satisfaction studies to gauge market reaction.
There is a Chairman in the upper part of the organization who will take
decision and pass them to the lower part of the organization.
There is a Chief Marketing Officer who will handle overall responsibility for
all of the company marketing activities.
There are Board of Directors in the company that will handle the problems of
their clients and pass the problem to the chairman of the company.
There is a Financial Manager who will handle all the problems related with the
money. He will give the details of all the expenditures, revenue and losses to the
upper part of the organization.
Financial Projections
Objective Metric: Sales of Rs. 200, 00000 be the end of first year and sales of
Rs. 400, 00000 by the end of the second year. The gross will be margin higher
than 60% and positive cash flow yearly.
Rs. In Crore
Revenues 1st year 2nd year 3rd year 4th year 5th year
Face wash 2 4 5 5 5.5
Implementation Timetable
First year
• The company will take over the urban and semi-urban market.
Second year
Summary
The face wash is the product of Lux which is well known brand in the cosmetic
market. The product is designed to enhance the beauty of the teenage and career
oriented females. As such it is created clear position in the market, this shows
that Lux has clearly understand its customers and has delivered differentiated
product range to meet consumer needs and wants. To introduce the new range to
market, Lux face wash put well plan marketing mix, with the scope of changing
according to consumer behavior and market scenario. The marketing mix is the
balanced combination of 4p’s. Lux face wash has a lot of scope to change and
transform their product for better result, to face the challenge.