ASSIGNMENT ON MARKETING PLAN OF LUX FACEWASH

SUBMITTED TO: MR ASHWANI

SUBMITTED BY: MEENAL KHANNA REG NO 11204640 SECTION: Q1E14

I. EXECUTIVE SUMMARY
The Indian FMCG sector is the fourth largest sector in the economy with an estimated size of Rs.1,300 billion. The sector has shown an average annual growth of about 11% per annum over the last decade. The sector is characterized by strong presence of global businesses, intense competition between organized and unorganized players, well established distribution network and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. Currently the Indian skin care and cosmetics market is valued at $274 million and is dominated by HUL, Colgate Palmolive, Gillette India and Godrej. The major player in this segment is dominated by Hindustan unilever by with the market share of 54%. Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of two out of three Indians. HUL iconic brand LUX worth $1billon present in many countries across the world. The name LUX was chosen as a play on the word "luxury." Lux believes in passion for beauty as it in step with the changing trends and evolving beauty needs of the consumers, offers an exciting range of soaps, body washes and deodorants with unique elements to make bathing time more pleasurable. One can choose from a range of skincare benefits like firming, fairness and moisturizing. Hindustan unilever factual sheet:Lux has offered a range of soaps in different colors and world class fragrances. Now the company mission is to enter into new product variant under the same umbrella brand LUX i:e Lux Face wash for its customers within the age group of 16-35, with different extracts like lemon, honey, aloe vera, etc in order to provide varieties to the ultimate customers. The company will launch the face wash for all skin categories from dry, normal to oily skin. HUL making India only the country where the worlds largest selling soap brand Lux is being launched as face wash. Lux brand is very strong in the Indian market and it is associated with beauty and fragrance making it a logical move. Its aggression is far more in the personal care portfolio that contributes market share of 54%. It wants to capture Indian market share by more than 18% in the next 3 years. As according to the data of times of India the face wash market grows 10-fold to Rs 1000cr in 5 years. Now I would like to through some light on financial performance or results of Hindustan unilever ltd which are as follows:2012-2013 Result at Glance Comparable audited results (in crores) for the 12 month period from April 2012 to March 31, 2013 compared to April 2011 to March 31, 2012.

So above figures give the view that HUL has grown tremendously with its luxurious brand and moreover segment wise sales are more in soaps and detergents which now saturated in the market, so in order to expand the growth of HUL and its premium brands new product development is essential.

SITUATION ANALYSIS
This stage informs us about where we stand today. It generates ultimately the problems and possibilities encountered by the existing product/brand and innovation planned. Basically to know the current market situation. It is necessary to gather enough information about the external company environment in order to form a business and market picture of current and future pressure and trends. A) Category/competitor definition:- Currently head to head competition is going between FMCG companies. So before launching a new product various key essentials should be taken into consideration like product quality, price, packaging, brand image of that product and marketing strategy the competitors are using. The main competitors of Lux face wash will be :Himalaya, Garnier, Dove, Lakme, Ponds, Nivea and Everyuth. B) Category analysis:- It identifies the factors that can be used to access the attractiveness of the product category in which the product competes. Attractiveness might occur when there is high disposable income, people are shifting from product to brand users to lifestyle, growth rate is high, etc.

Aggregate market factors Category Size:- The number of individual in a market who are potential buyers or sellers of a product or service. Companies are interested in knowing the market size before launching a new product or service in an area. So the category size for the Lux face wash will be urban and semi urban female customers within the age group of 16-35. Category Growth:- As in FY13 company achieved the strong growth across all segments as strong innovations helped it to further strengthen its portfolio and brands. The growth in the personal care segment contributing 28% revenue and moreover it has increased the pace of the new launches and achieve higher growth, so this category of Lux i:e face wash will also gain relative growth in the market due to its existing iconic brand LUX. We should know the product market relationship of new product in order to understand its growth options and their relative attractiveness. In other words to add a product variant under existing brand name. For this matrix has to be made which is shown below:-

ANSOFFS PRODUCT MATRIX Existing Products Existing Markets New Markets Market Penetration New Products Product Development

Market Development

Diversification

From the above matrix we can analyze that the Lux wash will be the product development means new product in existing market in order to gain more sales, brand loyalty, customer base and increase our market share. Basically we are leveraging our strengths by developing a new product targeted to the existing customers. Stages in the Product Life Cycle:A new product processes through a sequence of stages from introduction to growth, maturity and decline. This sequence is known as product life cycle and is associated with the changes in market situation.

The product life cycle of LUX is maturity stage, this is the reason that new product development is being done in order to revive the brand Lux once again in the form on new product variant i:e LUX FACE WASH.

The Product Life cycle of new Lux wash will be:This will be projected or proposed PLC of Lux face wash one not actual as we are drafting plan.

This pattern of product life cycle is known as scalloped pattern which means sales pass through the succession of life cycles based on the discovery of new product characteristics, uses or users. Seasonality : In the business of personal care segment the seasonality is there and that reason the Lux facewash will be coming with different extracts and for all skin types to capture the market share in all seasons.

Profits: It will definitely make profits in the initial stage as it has strong brand image in the existing market and with the passage of time it will reach to rural market also which will help the HUL to capture the untapped market. So profits and growth will be there.

II) Category Factors: Category factors include porter five forces model which is as follows:-

This is the proposed porter model for Lux Face Wash Threats of new entrants (medium): As the major players of face wash are already existing like nivea, ponds, lakme, pears, Himalaya which are strong in this category, so threat regarding new entrants is medium. Bargaining powers of buyers(high): Who are buyer i.e consumers, consumers are every time very price sensitive because they always go for the cheaper price product . Competitors are producing wide variety of product so their will more chance of consumers to switch other product. Consumers always concentrate on value for money. Bargaining power of suppliers (low): HUL has more than 100 manufacturing units in India, as there are no of suppliers available so there will be lesser bargaining power of suppliers. Threats of substitutes products(high): There are mainly two threat to Lux face wash i:e other already existing major player of face wash like pears, nivea, dove and soaps of various premium brand category which can be use as face wash. As urban area people are doing the same. Degree of rivalry (high): LUX Soap Faces very huge competition in the Indian economy not only from the regional but also from the brand dove, ponds, lakme which will have greater impact on their sales which lead to decline in their profit. Even its face stiff competition from the global brand such as pears is emerging day by day.

III) Environmental Factors: There are various environmental factors which can affect the new product. For this we should do PEST analysis. Political Factors: The political environment in India is changing day by day and they were entertaining new entrants by giving concession on sales tax . As the government is the only political body which decides the duties, regulations, etc which affect the growth of the company. Economic Factors: it include factors like inflation, disposable income of the consumer, spending pattern, rising cost of inputs, exchange rates which have an impact on the launch of new product. Like rupee depreciation may hit the margins of the company. High inflation reduces the purchasing power of the consumer which restricts them to purchase new or premium brand. Social Factors: it include factors like lifestyle, values and demographics. Changing in the habit of the consumer to buy the product also affect. With increase in the income of the people there is increase in the need of personal care products. Technological Factors: Technology play an vital role in the launch of new product in the market. Because it is the advanced machines or technology with the help of which we design the new product, measure its quality, packaging and shape of the product is being done. In order to analyze the business situation we should do SWOT ANALYSIS which is as follows:

SWOT OF HINDUSTAN UNILEVER LIMITED (HUL)

STRENGTHS No1 Company in FMCG sector. Strong Brand Image. Wide Product Range High Market Share Large Distribution Network. OPPORTUNITIES Tap the rural market Expand beyond FMCG i:e non consumer goods. Mergers and acquisition to strengthen the brand.

WEAKNESSES All products are not in growing stage. Poor product line of R&D.

THREATS Intense and increasing competition among other FMCG companies like P&G, etc. Products at maturation stage Strong private labels/brands

SWOT ANALYSIS OF LUX

STRENGTHS Strong awareness of the brand. Market presence across all the segments. Strong and innovative brand promotion. Many variants(almond oil, fruit extracts, tec) OPPORTUNITIES Strong hold over the marketholding large market share of Lux brand. It should come out with more variants as lux body wash is at growing stage.

WEAKNESSES Lack unisex appleal, as it positioned towards women only. Not much popular in rural market.

THREATS High internal competitionpears(beauty segment) It is in the maturity stage of PLC. New entrants with new product innovation .

BCG MATRIX :-

LUX FACE WASH ( projected)

Explanation:By seeing the above matrix we can say that the new product of Lux i:e face wash will come under CASH COWS which means they have lower cost position in relation to the competitors. The experience is on account of large market share. As the market grown slowly, no major investment is required. The cash generated by cash cows supports innovations and new product development taking place within stars.

C) Competitor Analysis:Competitors of Lux like Ponds, Dove , Garnier and Lakme etc are competing at the upper (premium) segment while Everyuth, 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 Dove, Garnier, Ponds, Lakme have very strong brand positioning. It will not be that easy for Lux to enter the target market of these companies .Since Lux is already a established brand so, it will not be that difficult for the company to create its dominance in the market segment. The company can also use its wide distribution channel to reach the market where the other players lack. OBJECTIVE: Capture 18% of the face wash market share in two years Lux having a good brand positioning in the mind of customers as its product like soaps, body wash 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. Enter the rural market post two years of the launch. The company after analysing the situation of its face wash in the urban and semi urban market in the one years from its launch, it will enter in the rural market creating the value of its product among the rural market.. 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.

COMPETITIVE STRATEGY LUX being an FMCG industry will have a worldwide strategic scope for the future. However in order to survive in this competitive world LUX should focus on both differentiation and also to practice cost leadership strategy to gain more market share in this industry. In order to differentiate LUX product with the other competitors by charging low price to the initial customers but it will depend on the competitiveness to attract more customers simply by showing their price difference in the supermarkets which will increase their sales at lesser margins of profit. Another factor LUX should also focus on overall cost leadership from the competitors this because having premium price charge to a particular product will attract more consumers to buy it and it in biggest challenge for LUX to charge attractive pricing strategies to gain overall cost leadership. All this will lead to create more brand awareness of the product. MARKETING MIX Product Product Category: Core benefit: LUX FACE WASH is easy to use, feel fresh for the longer time, improves the confidence. Expected product: The longer lasting experience Augmented product: By introducing some kind of fragrance in the face wash and making the skin glow and shine which when compared with competitors product, definitely it will exceed customer expectations. Potential product: Introducing the face wash for different skin types, like for dry skin, oily skin and for rough skin. . When we classify according to consumer good classification, Lux face wash comes under convenience goods, because people buy the face wash with minimum effort. And we can say that Lux face wash is staple goods, because consumer buys face wash on a regular basis. 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. Features: We can differentiate the product through features of the product by giving more features to customers like fragrance, long lasting experience, shine on the skin etc.

Price Selecting the prices: Companys pricing strategy should be according to the strategy of its competitors. Promotional Pricing: Lux can use promotional pricing strategy like discounted price at special events like women day, valentine day for college students. Responding to Customers 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 competitors price to sell the product. 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. Website 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 Lux has bollywood actress as a brand ambassador like Deepika padokoune at present. Place There is a significant change in market distributional channel of cosmetic products. Distribution places are: 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.

D) Customer analysis Lux will basically focus on the urban and semi- urban women of age group16-35. 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. III) OBJECTIVE Corporate objective: To increase Profitability of the product. This is will be done by introducing new Face wash in LUX itself to boost sale in order to increase profit. Marketing objective: Introducing some attractive prices for an upcoming product and also to introduce some low cost operation in order to grab lower income group Consumers.

IV) PRODUCT AND BRAND STRATEGY Customer target:- The company will primarily target on the urban and semi-urban female customer at initial stage of launch. Gradually it will reach to rural segment. Company will target metropolitan cities and town because of population, consumer knowledge about the product is considerable and towns are upcoming business places. Competitor target:- Some competitors target upper premium segment of the market like Dove, Nivea,etc and there are also small players which dominate the rural market, so it will somewhat difficult for the Lux Face Wash to enter into these target area of the competitor. Product features:- Maintains freshness, develops beauty, increase confidence, good quality ingredients, atmosphere friendly packaging. Product positioning:- We all like to look gorgeous and enjoy that confidence which makes us feel like anythings 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. V) SUPPORTING MARKETING PROGRAMS:For expanding its sales again we should follow Mobile media to increase sales of the product with usage of this peoples will have an closer look for the introduction of new product such as by introducing LUX face wash so peoples were get aware of new product of the LUX by

introducing some new product in the same market consumers will have more awareness of the brand. I am using this media because most of the peoples have closer look for the same product by adding some attractive features on the current product. However, in order to promote new product in the market i.e LUX face wash so to create more awareness of the new product will be provided free face wash for the small number of peoples to create brand awareness and by also giving free samples of the product. Sales promotion should also be considered a major part of the promotional mix it should be done during the whole year. This will all lead to increase in sales.

DISTRIBUTION CHANNEL:- Once process of manufacturing is completed there should be an appropriate action for the channel of distribution. It is the most important marketing tool for distribution of the product. Therefore channel of distribution should control from different hub. There has to be at least five distribution centres on the different part of zones to supply the product in the local market to the supermarket. MARKET RESEARCH:- The company will identify the specific features and benefits the target market segment value. The company will also take feedback from the market, conduct surveys and focus groups which will help the company to come up with further innovative product. The Company will also measure and analyze the customers 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. VI) FINANCIAL DOCUMENT:- (PROJECTED) Objective : Sales of Rs. 200, 00000 be the end of first year and sales of Rs. 400, 00000 by the end of the VII) MONITOR AND CONTROL:_ Benchmarking: It is the most important and process to take control over the plans by comparing its performances of business to the other competitors performance which will have a greater impact on the improvement of the companies process if they are lacking in some areas.Periodic Control: It is also an important factor to be considered while exercising on plan for their marketing audit timely. Company should not always depend upon outside auditor they should gain control over their plan from internal auditor of the company. Some other measures:-

Weekly flow of bookings against planned capacity. Customer awareness of advertising messages measured by research surveys VIII) CONCLUSION The face wash is the product of Lux which is well known brand. The product is designed to enhance the beauty of 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

REFERENCES http://articles.economictimes.indiatimes.com/2013-06-05/news/39764666_1_dove-premiumbrands http://www.mbaskool.com/business-articles/marketing/1506-an-analysis-on-lux-beautysoap.html http://www.managementparadise.com/forums/marketing-management/139305-luxcomprehensive-study.html http://www.unilever.com/aboutus/introductiontounilever/ http://www.ukessays.com/essays/marketing/situational-and-environmental-analysis-of-luxsoap-marketing-essay.php https://www.google.co.in/search?q=product+life+cycle+example&newwindow=1&safe=off &espv=210&es_sm=122&tbm=isch&tbo=u&source=univ&sa=X&ei=iWIBU8HsLcGSrgfR 24G4Bg&ved=0CD8QsAQ https://www.google.co.in/search?newwindow=1&safe=off&espv=210&es_sm=122&tbm=isc h&sa=1&q=bcg+matrix&oq=BCG&gs_l=img.3.0.0l10.17317.20289.0.22444.28.11.0.0.0.4.28 0.1348.2j2j4.8.0....0...1c.1.35.img..24.4.945.7efwcGpJXE8 https://www.google.co.in/search?newwindow=1&safe=off&espv=210&es_sm=122&tbm=isc h&sa=1&q=pest+analysis&oq=PEST&gs_l=img.1.6.0l10.17698.20072.0.22946.12.8.0.0.0.0.2 69.974.1j0j4.5.0....0...1c.1.35.img..8.4.741.ZqqeCRPReqA http://www.investopedia.com/terms/b/brand-extension.asp https://www.google.co.in/search?q=scalloped+pattern+in+plc&newwindow=1&safe=off&es pv=210&es_sm=122&tbm=isch&tbo=u&source=univ&sa=X&ei=oGMBU7OnMMOrge5lYDwDQ&ved=0CEwQsAQ http://www.quickmba.com/marketing/product/lifecycle/

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Date of Allotment : _____________________ Date of submission : ___________________

Students Roll No._______________________ Section No. : _________________________ Declaration: I declare that this assignment is my individual work. I have not copied from any other students work or from any other source except where due acknowledgment is made explicitly in the text, nor has any part been written for me by another person. Students Signature : _____________ Evaluators comments: _____________________________________________________________________ Marks obtained : ___________ out of ______________________ Content of Homework should start from this page only:

There is a significant change in market distributional channel of cosmetic products. Distribution places are: Super market Shopping malls ER 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.

Other places for distribution are: Drug stores Cosmetic soaps Beauty saloons Retail stores

Lux is an important toiletry brand of HUL. HUL having 3000 distributors around the country is a very strong distribution channel in India.