Sunlight Flakes

Product Life Cycle

Introduction
1890s- Lever brothers, although already selling
nearly 40 000 tons of Sunlight soap a year and
starts expanding into Europe, America and the
British colonies with factories, export businesses
and plantations; still wasnt contented of the
product they have that time. External factors such
as marketplace trends (customer wants and
expectations) made them realize that theres still
some room for improvement for their product. Up
to the end of the 19th century, washing clothes at
home usually entailed the tedious task of cutting
chips off of large hunks of laundry soap to use in
creating sudsy water. At that time, what the
customers want is a laundry soap that would be easier to use. A Monsieur Charpy employed at
Lever in England developed a technology that allowed production of a very thin sheet of soap
that then could be flaked.
1899 It was during 1899 when Lever Brothers introduced a new type of product, Sunlight
Flakes a domestic brand in the United Kingdom, The Sunlight Flakes is basically formed from
using scrapes or flakes coming from the former product Sunlight soap, and this makes
housework easier than with the traditional hard soap bars.
Growth
1900 The name changed from Sunlight Flakes to Lux in 1900, a Latin word for light and
suggestive of luxury. As a trade name, Lux had multiple advantages. The name is short and
easy to remember; in Latin it means "light" (and so is related to Sunlight); and by association it
suggests luxury. The Lux trademark was registered in the U.S. in 1900.
1906 The soap flakes began to be imported to the U.S. and manufactured at a new Lever
Brothers plant in Cambridge, Massachusetts in 1907. The product was not promoted heavily at
first, and sales were modest.
Maturity
1925 Lux toilet soap was launched in the United States in 1925 and in the United Kingdom in
1928 Subsequently, Lux soap has been marketed in several forms, including hand wash,
shower gel and cream bath soap

Product Design
Formulation

Lux Soap Bar Silky Touch

The list below displays ingredients in descending order, with those present in highest
quantities coming first. Please note: This is the latest formulation present on the market.
It may not exactly match the product label. If the information is not what you require or
does not correspond with the product you have bought, please contact our consumer
careline for more details.

Ingredients

Functions

Sodium Tallowate

Surfactant

Aqua

Solvent

Sodium Palm Kernelate

Surfactant

Glycerin

Humectant

Helianthus Annuus

Skin Conditioning Agent

Parfum

Fragrance

Sorbitol

Humectant

Prunus Persica

Botanicals

Sine Adipe Lac

Skin Conditioning Agent

Lactic Acid

Humectant

Bisabolol

Skin Conditioning Agent

Tallow Acid

Surfactant

Ingredients

Functions

Palm Kernel Acid

Surfactant

Propylene Glycol

Solvent

PEG-40 Hydrogenated Castor Oil

Solubiliser

Trideceth-9

Emulsifier

Pentylene Glycol

Solvent

Sodium Chloride

Viscosity Controlling Agent

Tetrasodium EDTA

Sequestrant

Etidronic Acid

Sequestrant

Sodium Sulfate

Bulking Agent

Citric Acid

Additive

Ascorbic Acid

Additive

Alpha-Isomethyl Ionone

Fragrance

Benzyl Salicylate

Fragrance

Butylphenyl Methylpropional

Fragrance

Citronellol

Fragrance

Coumarin

Fragrance

Geraniol

Fragrance

Limonene

Fragrance

Linalool

Fragrance

Ingredients

Functions

CI 14700

Colourant

CI 15510

Colourant

CI 77891

Colourant

Packaging (Benchmark, CAD or Reengineering?)

Order winners
Lux is famous for its superior fragrances and luxurious products, leading to its number one
branded spot as the best-selling soap bar in the world. An iconic brand that has over 90 years of
heritage including some of the worlds most beautiful stars as its ambassadors like Audrey
Hepburn and Elizabeth Taylor. Lux continues to be successful through its history of positive
association with suppliers; providing quality raw materials and driving its vision of entering even
more key beauty markets worldwide. It also continues to work with regional stars and leading
ladies of today.
Advertisement
600 million women all over the world regularly use Luxs superior and trusted products and this
is partially due to Luxs keen engagement with female celebrity endorsements as a method of
promoting the brand. It is thought that over 400 world famous actresses have had the pleasure of
being the face of Lux at some point over its global journey. The brand endures all beauty brand
competition through its outstanding vibe of femininity.
Variety
Lux soap comes in a variety of forms, flakes, bars and liquids. Originally, Lux made Laundry
Flakes -- a thin sheet of soap film was cut into small flakes. They called these Sunlight Flakes,
but changed the name in the 1900s to Lux, which means light. Lux flakes were made to wash
clothes, but were so gentle women soon began using them as dish soap, hair soap and other soap
uses. Lever Brothers developed a bar soap form of the Lux Flakes called Lux Toilet Form. This
became well-known hand soap because of its gentleness.
Product Safety
Lux soap products are gentle and do not irritate normal skin. According to the Unilever Corp., it
applies high standards checked by in-house safety specialists before bringing a product to
market. Unilever has an established Safety and Environmental Assurance Center that ensures
safety of the environment, people and production. Lux soap is formulated for use with children
under age 3, the elderly and other vulnerable members of the population. All soap formulations
are designed and tested for human and environmental use, according to Unilever Corp.
Affordability
Lux, when it was introduced in the United States in 1925, gave people an affordable option to
expensive French milled soaps. Lux is also sold in China at an affordable price for consumers,
according to China Radio International

Product Design (All)

Product Life Cycle (All)
Process Design (Current Product)
Supply Chain Management (Current Product)
The Unilever company has segmented structure of supply chain management. The purchasing,
production control and distribution departments have responsibility for material management.
SITARA CHEMICALS is the supplier of local raw material of soda ash, caustic soda etc.
Supplier selection is based on price, quality and delivery.
SAFETY STOCK
2 to 3 weeks for basic (imported) material
2 weeks for packaging material
LEAD TIME
13- 20 weeks
FORECASTING
Demand Forecasting
A forecast is the prediction of future events used for the planning purposes.
Forecasting Techniques
There the three forecasting techniques are available for the purpose of the forecasting of the
demand, which are as under.

Judgmental Method.

Causal Method.

Time Series Method.

The usage of these techniques depends upon the availability of the data about the past.
Forecasting at Unilever
The forecasting technique, which is being followed by Unilever, is the qualitative technique.
Sales Force Estimate
Sales force estimate of forecasts compiled by the members of the companys sales force (their
dealers in each region) about the future demand of the product. They are using this technique
because they believe that their estimates are correct since the dealers are much near to the
market. Marketing Department is actually involved much in forecasting. They observe the trend
of the market and they set their target of sale then they tell to the production that what is their
target then production department make productions according to the target set by marketing
department.

Time Series
Demand for the future periods is also determined by the time series method. Historical data about
the past demand is the basis for the time series. The data is used for the demand projection for
the coming periods.
Marketing Research
Marketing research is also conducted by the firm. Data obtained is used to determine the
customer demand pattern, and trends.
Effective Capacity
It is the maximum output that a process or firm can economically sustain under normal
conditions. When operating close to peak capacity, a firm can make minimal profits or even lose
money despite high sales levels.
Operations manager must examine the three dimensions of capacity before making capacity
decisions:

Sizing capacity cushions

Timing and sizing expansion
Linking capacity and other operating decisions

The capacity cushion is the amount of reserve capacity that a firm maintains to handle sudden
increases in demand or temporary loses of production capacity it measures the amount by which
the average utilization falls below 100 percent.
CAPACITY CUSHION = 100% - UTILIZATION RATE (%)
Another issue of capacity strategy is when to expand and by how much there are two extreme
strategies:
The Expansionist Strategy, which involves large infrequent jumps in capacity. In this strategy
organization remains ahead-of-demand.
The Wait and See Strategy could be to follow the leader, expanding when others do. Management
may choose one of these two strategies or one of closely linked to strategies operate between
these extremes. Capacity decision should be considered throughout the organization. When
managers make decisions about location, resource flexibility and inventory, they must consider
the impact on capacity cushions.
Capacity cushion buffer the organization against uncertainty as do resource flexibility, inventory
and longer customer lead times. If a system is well balanced and a change is made in some other
decision area, then the capacity cushion may need changes to compensate.
The categories and sizes of the soaps manufactured are given below:
Hard Soap
LIFEBUOY( Red & White) 140gms.
95gms.
TOILET SOAPS
LUX 140gms

PURPLE &
GREEN 95gms
WHITE
LIFEBUOY GOLD
Pink & White 140gms
95gms
BREEZE 85gms
LIRIL FRESH 140gms
RAIN FRESH 95gms
Main point about the capacity are given below

Capacity is measured in terms of output.

Measuring unit is per ton
Sizing capacity cushions are used for the capacity
Planned lead-time for changing a dice is 8 hours.
4 lines are available for the hard soap (lifebuoy).
Capacity of per line is 210 tablets / min.
Shift production is 40 tons / shift
Daily production is 120-tons/ day with 3 daily shifts.
For toilet soaps 3 lines and 5 machines are available.
Capacity for toilet soaps is 190/ min while the average capacity is 180/ min.
Annual production capacity for life buoy is 30000 tons to 35000 tons.
Utilization = Avg. Capacity/ Capacity
Utilization for toilet soap is 95%
Utilization for hard soap is 97% Effective capacity
Utilization for toilet soap is 90% Peak Capacity
Utilization for hard soap is 93%

Cost Department
This department provides very useful services to the company and is responsible for costing of
the products. This department does the yield calculations of the followings:

Soapery fatty acids

Crude glycerin
Refined glycerin
Edibles

For the calculation of yield, these elements are taken into consideration:

Storage loss/gain
Bleaching loss
Packing loss/gain
Un-accounted loss
Storage Loss/Gain

When oil and fats are received by the material store, sample is taken for measuring percentage of
Free Fatty Acids (FFA) and moisture. All these materials are received by the stores and then
issued to production department.
At the quarter end, cost department do the stock taking of all the tanks of oil and fats and also
draw a sample for determining moisture. Now the cost department see that what is the difference
between the physical n=and book stock. This deference will be the loss or gain and charged to
the production account.
Bleaching Loss/Gain
For the purpose of bleaching the Activated Earth is used. The Activated Earth absorbs some
amount of tallow. This absorption is called bleaching loss. Cost department calculates this loss.
Packing Loss/Gain
When the finished products are packed some packing loss or gain took place at this stage. Some
products are packed above the standard weight and some less. Packing loss or gain is also
determined.
Un-Accounted Loss
Some losses are not seen in manufacturing process, these are called Un-accounted losses.
Reports of Cost Department
Cost department looks into the yield and performance of the factory with the help of various
reports. These are following:
1.
2.
3.
4.

Daily stock report

Production accounts
Daily production report
Power & Steam production report

1. Daily Stock Report

This report tells that how much raw material is transferred to plant, what is the weight of
activated earth used, how much fats are spoon-fed, soap cleaned, lye transfer to glycerin section,
lye treated and refined glycerin effected into drums. With the help of these information, this
department takes care of yield.
2. Production accounts of the products
Cost department makes production accounts of all products with the help of followings:

Raw material cost

chemicals
Packing material
Variable direct material

Raw material cost

Value of material consumed is taken from consumption schedule and is charged to production
accounts after making adjustment of opening and closing stock.
Chemicals

Cost of chemicals and taken from consumption schedule and prorated on products pack wise and
in these cases whose closing stocks are chemical mixed value is charged to production accounts
after adjustment in opening and closing stock.
Packing material
Packing material but is taken from consumption schedule and then total cost is charged to
production accounts of the products.
Variable direct material
It is just as packing material but at present crude glycerin stock has accumulated hence we have
to keep variable chemicals value equivalent to its weight in stocks.
Steam and power are taken from variable direct schedule in total against their location but same
case with crude glycerin, which has been explained, in variable direct chemicals.
3. Power & Steam production report
Steam
Weekly steam production report is received and from these quarter reports are prepared. Meter
reading of all steam main meter and sub-meter are done at quarter end. Cost of steam is
calculated and transferred to all the production departments where steam is used. Cost of burners
used in factory is subtracted from total Sui gas bill.
Power
Meter reading of WAPDA main meter, and own generator and sub-meter in the factory are done
at quarter end. Power is allocated on all factory location on the basis of sub-meter; the technical
management gives the standard bases. The cost of power is changed to production accounts.
4. Daily production report
The reports of daily production are submitted by the production department to cost department.
This report helps in watching what is the production of certain product on certain day, and how
many transferred to warehouse and what is the present balance on department floor.
Cost control documents preparation
Following documents are prepared for cost control purpose.
Standard yield vs. Actual yield
Standard chemical valuation vs. Actual chemical which is used in production
Standard stem & power vs. Actual steam & power
Standard man hours vs. Actual man hours
Calculation of variable cost of sales
Cost department prepares daily, monthly and annual cost reports. These reports are used by the
management for control purpose whether the cost is according to the standards is not. The area of
difference is pointed out and a better control is exerted for the future. It is also important because
if a company is able to lower its production it works more than to increase the market share. It is
easy for a company to lower its cost because it is in its own control while the market is beyond
the control of management.

In Lever Brother the cost of sales is calculated in a very simple way according to the standards of
accounting.
The report starts with the opening stock of Material, Steam/Power and Distribution. In these
opening stocks the cost of oil and fats which comes from oil & fat consumption report, the
chemical cost which is obtained form chemical consumption report, cost of packing material
obtained of packing material consumption report, cost of steam/power obtained from
steam/power consumption report, for that day production is added and it gives variable cost of
production. From this variable cost of production the closing stocks of material, steam/power and
distribution that day is deducted which gives total cost of sales.
DISTRIBUTION PROCEDURE OR SUPPLY CHAIN NETWORK
First of all production is transferred to distribution warehouse by the production department.
Distribution department has two warehouses, which are capacity wise 700+150 tons (for soap
and personal products) and 500+200 tons (for cooking oil. Distribution department arranges the
dispatch plan that is provided by the consumer services head office. Therefore products are
dispatched according to the dispatch plan. Company has various sales depots located in different
cities throughout the country. Such as:
Faisalabad
Karachi
Wazirabad
Lahore
Rahim Yar Khan (central)
Rahim Yar Khan (south)
Dera Ismail Khan
Multan
Distribution department sends products directly to distributors or to sales depots as per
instruction of sales department head office. Sales department makes sales contracts with different
parties and supply by advising distribution in Rahim Yar Khan Factory.
All sales depots are controlled by head office. Sales department send plans for despatch to these
depots which take necessary action according to plan.
Rahim Yar Khan South depot covers the area of Baluchistan and Sind while Central covers the
area of Punjab and NWFP. There is another depot named over flow depot in Rahim Yar Khan.
When there is shortage of space in factory warehouse, production is transferred to this depot.
Distribution department Rahim Yar Khan Factory sends despatch plans to over flow depots. This
depot arranges the supply accordingly. For all the despatches a despatch advice is prepared in
which the full detail of the products are maintained. Five copies of despatch advice are prepared.
One copy is sent to consignee through transporter.
One copy of D.A is sent to customer service head office.
One copy is sent to accounts department.
One is for distribution department Rahim Yar Khan
One copy is given to transporter that is called acknowledgement.
DISTRIBUTION CHANNELS

Lever Brother Pakistan Ltd. (Unilever) has a centralized distribution system in which the
products are distributed from one warehouse to the selected distributor of the company, and then
the distributor make the product available to the wholesalers and at the end the product is
transformed to the retailers to be purchased by the final customer.
The company had direct relations only with the distributors for making the product available to
the target market. It deals with the distributors on net and advance payment bases and does not
give any credit facility to them. However the company provides different commissions
incentives. There are many certified distributors of LBPL operating in almost all major areas of
the country.
Sometimes when the company introduces the same product line in different innovation style then
it uses the following channel of distribution. The company has specifically directed its
distributors to provide that innovative products to retailers skipping out the wholesalers in the
channel. The basic reason for doing this was to eliminate the wholesaler commission so that the
price can be placed at relatively lower level.
Channel is like this
Manufacturer (LBPL) Company warehouse
Consumer Retailer Distributor
In short the intense coverage of market is the basic aim of LBPL distribution policy.
QUALITY CONTROL
Quality is the use of techniques and activities to achieve, sustain and improve quality. It involves
integrating the following related techniques and activities:
1. Specification of what are needed.
2. Design of the product or service to meet the specifications.
3. Production or installation to meet the full intent of the specification.
4. Inspection to determine conformance to the specification.
5. Review of usage to provide information for the revision of specification if needed.
6. Utilization of these activities provides the customer with the best product or service at lowest
cost. The aim should be continuous quality improvement.
OBJECTIVES
OFI Opportunity For Improvement
Always looking for improvement.
The continuous improvement of all services through total involvement of all employees.
The developing and the strengthening of partnership with external and internal customers and
suppliers.
Providing innovative and higher quality products and services to achieve total customer
satisfaction by understanding their requirements and anticipating their future expectations or
needs.
FUNCTIONS

 Monitoring annual targets for quality improvements in all areas.

Creating a culture of customer focus striving to become the lowest cost producer through
agreed annual cost reduction program.
Value people by understanding and drawing upon their strength i.e. abilities and knowledge and
make efforts for their training and development.
STAGES
RAW MATERIAL:
When raw material is received the quality of raw material is inspected according to the standards.
According to these standards if the personnel of receiving department will inspect according to
the standards. If there are a lot of 500 and they choose 13 samples from the whole lot then they
select the sample from the upper and lower and right and left side of the whole packet. It means
that they select the sample by way of diversifying the area. If the 2 units of the sample are
rejected then the whole lot will be rejected and if the lot is rejected then they call back the
vendors and vendor check that lot again. If the lot is very much needed by the production
department then they place a written request. The 100% inspection is done on it. In this case,
they call the vendors or their inspectors and they check it on 100% basis. But this happens in
very rare cases.
On the other hand if the lot is accepted then it is remarked as GRL (good received lot) and sent to
the store. While four copies of GRL are made and sent to the following four departments:
1. Purchase Department
2. Quality Control Department
3. Store
4. For computer entry
DURING THE PROCESS:
When the product is in-line then quality inspector check it at every stage of process. If these
inspectors will sign it for next process then product will go for next process. If they do not sign it
then the work will stop. Then for the accepted and rejected production, the quality inspector will
give report. This report has also included the sign of supervisor of process area. So that analyzing
the rejection and acceptance %age for next rectification and improvement.
Then report will pass to the production manager so on this base they can make the weakly and
monthly report. And it will pass to the top management. In this inspection is done at every stage
and will pass towards the top management. The ISO has given them standard for the whole
process. It also includes the initial cost but the running cost is more safe and effective because
the chances of rejection are reduced. We can say that the chances of rejection will be controlled.
In this way the quality level is much improved and it reduces the customer complaints. Monthly
charts are also made and management also takes correction actions.
If there is a need of corrective action then they will request. The immediate action will be taken
on that form and until the corrective action will not be taken they production level will be ceased.
Quality control department has given their dimensions. And if there is any deviation from these
dimensions then even the MD of the company cannot start the production. And charts are also
following these dimensions everywhere in the production area.

UNILEVER DIGITAL COMMUNICATION FOR SUPPLY CHAIN

Unilever, speaking at the recent Melcrum Digital Communication Summit in London. His
session, Connecting employees to the heart of Unilevers Sustainable Living Plan provided
fantastic insight into a behavioural change management strategy to put sustainability in the
spotlight across the entire organisation the way employees work, the value chain and even the
way consumers use Unilever brands.
Here are a few points from the very informative session

Align internal/external - A significant part of an IC strategy in todays digital world

should be aligning internal communications with external. Unilever did this by creating
integrated campaigns that targeted both internal and external stakeholders to share the
progress the business was making, generate solutions and invite interested parties to help
shape Unilevers plans. One tactic used was to create a 24-hour web jam forum with a
variety of live events, discussion and online participation that was open to both external
and internal participants.

Focus on content first, channel second Focus first on the content what content is
needed for the messaging? How does it need to be localised or segmented to the
audiences that will be receiving it? THEN look at what is the right channel to
communicate the message. When generating content, Neil noted the three Ps that
interest employees: People (what are others doing?), Product (for example, here, how are
they sustainable) and Participation (how can I participate?).

Create a user journey overview: Plan the entire user journey across all the channels you
will be using to communicate so you can ensure consistent messaging is going out.
Ensure local teams get the help they need to minimise the effort to implement the content.
This can include supplying localised by language.

Employee generated content is powerful - User generated content is VERY engaging.

Especially in the form of storytelling, which we as humans respond to and helps us
understand the message. Unilever opened up two-way channels to give employees many
ways to tell their stories. Everyone was invited to submit sustainability heroes in their
workplace, participate in local events and post their photos from the day. Plus, existing
channels were socialized such as adding forum chat into SharePoint.

SOCIAL MEDIA: Connecting with Partners and Consumers the new-fashioned way

Supply Chain Challenges Because of the relative economic instability, the typical trend
analysis and projection models are not meeting business requirements. Simply said,
predictive analytics, by definition, do not function well in times that are unpredictable.
When you cant predict the future with some level of reliability, it is even more important
that the business knows exactly what is going on in real time or near real time. With this
in mind, we can think of two areas of importance where social media might provide value

to improving supply chain performance and risk avoidance: Monitoring both planned and
actual consumer behavior (Im gonna buy vs. I just bought) is critical. What value does a
social media solution bring in comparison to POS information Brand reputation is always
critical, but even more so now with top-tier CPG brands losing market share to less costly
private label products. It is critical to have immediate responses to customer feedback,
issues, concerns, and complaints. Is there a role for social media here Are there any
privacy issues around the commercial utilization of social media information gathering
and how can they be minimized Supply chain professionals are concerned with the
customer population as opposed to a 1
sample. What are the current and
projected representative demographics of those participating in the area of social media

Supply Chain Challenges Increasing supply chain responsiveness leading to a more

customer-driven process: The ability to treat inventory in transit as available for the
safety stock calculations and have the ability to make mid-course changes to shipments.
Third-party logistics outsourcing. Re-negotiating partner agreements. Innovate with the
tools you have or take those same activities and hand them off to a 3PL, and let them do
the innovating. The risk of becoming too reliant on outsourcing is allowing ourselves to
be less alert and aware of changes. When contracting with a 3PL, we expect them to
provide expertise in areas of importing and exporting for example -- specifically in
regulatory matters, such as the Transportation Safety Administration appose new cargo
screening regulations and 10+2 regulations on shipment documentation. There is a need
to keep up to date on the latest regulations affecting international trade.
http://logipi.com/public/item/244464C-Level involvement in supply chain: There is much
more attention on the C-suitewith the chief operating officer, your chief executive
officertheres more recognition on their part of the impact of logistics and supply
chain, whether its managing the inventory, managing the sourcing, managing the
transportation. Its now more and more that the C-suite executives are starting to really
get the impact of supply chain.

Leadership Impact of Social Media Innovation Ahead of Competition Out of Price Wars
Differentiation Mission & Vision Direction Focus Flexibility Engagement Execution
Framework Delivery to Goals Accountability Ownership RO Strategic Plan Metrics for
Accountability Feedback Achievement Targets Guidance Net Promoter Social Solution
Suites Marketplace Message Communication Memorable & Impact Value Influence
Market

What tools will drive your success Social networks Video sharing Photo sharing Micro
blogging Link sharing Social calendaring

Unilever always focuses on Brand reputation because it is always critical, but even more
so now with top-tier CPG brands losing market share to less costly private label products.
It is critical to have immediate responses to customer feedback, issues, concerns, and
complaints in that case Unilever always try to be best in providing services to customers

SWOT Analysis
SWOT Analysis for LUX:
The SWOT analysis for Lux helps identify the external environment faced by Lux, and the
opportunities and threats that it presents.
Strengths
Lux possesses a very strong network of market research. Door to door surveying and
sampling is done annually in rural as well as urban areas selectively.
Lux has a very wide range of products to offer.
The parent company of Lux has helped in establishing a strong supply and distribution
network. Besides, it also has access to the resources of the parent company of Unilever.
Lux possesses a very strong brand image in the market.
The focus of Lux is going strong on beauty segment.
Lux is a dynamic brand and is undergoes changes as per the changes in demand and
trends, which is evident from the launch of the new range of body washes Magical
Spell, Scarlet Blossom, Strawberry & cream and Peach and cream have been launched
with the tag line of the secret to liquid silk skin.
The brand has innovative sales promotions tactics that spread across different forms of
media print, electronic and social.
The brand is known to deliver value-for-money in the eyes of the consumers.
It has a broad market presence and mass appeal, being the market leader in so many
countries. As per the BCG matrix, developed by the Boston Consulting Group, Lux can
be put into the STAR category for high market growth and high market share.
Weaknesses
Lux lacks a unisex appeal as it has essentially been portrayed as a womens beauty soap
and has a lot of feminine appeal.
The wear rate of the soap is very high. It gets dissolved pretty fast and gets mushy and
soggy quickly.
Certain variants of the soap, like the Haute Pink, Sunscreen, etc did not do so well in the
market as some of its other variants have.
Some of its advertisements have been quite controversial, specially the one with Shah
Rukh Khan in the bath tub, and the one of Haute Pink soap with the model in the bath tub
flying up in the air in a hot air balloon.
The stock replenishment in semi-urban areas and rural areas is quite long, despite having
such a wide distributor network. This leads to stock out in these areas.
Opportunities
The industry today is growing at a rate of more than 10% per annum.
The compounded annual growth rate, better known as CAGR is also rising at a steep
pace. This is evident from the performance of Fair and Lovely in its segment. So, Lux can
yield great benefits by reinforcing itself in the beauty segment.

Promotions strategies like kiosks, price offs, sample distributions, etc. are essential with
competitors like ITC, etc. catching up fast.
The soap, as mentioned above, is in the maturity stage of its life cycle. So it is essential
that a retentive strategy be adopted so that this can be sustained.
A Lux Kids Special soap would also help the brand greatly, as this segment has been
running dry for quite some time now. In this way, brand loyalty could be caught young!
The brand extension products of Lux the body washes, with its new range launched
recently, is in the growth stage of its life cycle. They can pick up fast pace is positioned
and marketed properly. Active marketing of these body washes is going on in the social
media.
During the sales promotions schemes, the level of servicing goes very high and this needs
to be brought down.
Lux has only near about 20% penetration in rural markets. Lux holds great scope if it taps
the rural markets.
Threats
Number of competitors is rising ITC, P&G, etc are fast catching up.
High internal competition also exists for the soap.
Lux seems overly relied on the beauty segment, so in case the consumer trends or
preferences change, then Lux stands to be highly vulnerable.
More focus needs to be put on the newer technology currently body washes being the
latest technology. This can already be seen in the market, but it needs to be enforced
further.
If constant reinvention is not there, then Lux can slip down from the maturity stage it
currently is in and get into a declining phase.
Thus, Lux is a soap that so many generations grew up using, so much so that, today the term
soap and Lux are used interchangeably in so many households. However, it never takes
much time for a bubble to break and yet it could be impossible to break a strong bubble. With
appropriate marketing strategies and developments, Lux could not only retain its alpha position
but also climb further up the ladder before any of the competitors got to catch up or come close
to it.

OUR VISION
Every day, our products touch the lives of over 160 million people whether that's through feeling
great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by
enjoying a great cup of tea, satisfying meal or healthy snack.

UNILEVER WORKS TO CREATE A BETTER FUTURE EVERYDAY.

The company helps people feel good, look good, and get more out of life with brands and
services that are good for them and good for others.

The company inspires people to take small everyday actions that can add up to a big
difference for the world.

The company develops new ways of doing business that allows business growth whilst
reducing the operations environmental impact.

SMALL ACTIONS, BIG DIFFERENCE

Weve always believed in the power of our brands to improve the quality of peoples
lives and in doing the right thing. But today, with the scale of the challenges the world
faces, its easy to believe that our individual actions are too small to make a difference.
Because of the sheer range of our portfolio, our global reach and scale, we can give
people the confidence that their small actions, together with those of millions of others
who buy our brands every day, can make a big difference.
For example, together we are already saving over 3 million lives by encouraging hand
hygiene, improving the oral health of tens of millions of people by creating a toothbrush
that costs only 10 Rupees, and supporting millions of farmers and their families by
purchasing tea from sustainably approved sources.
Our small actions really do add up to creating a better future every day.

A BETTER FUTURE FOR THE PLANET

As our business grows, so do our responsibilities. We recognise that global challenges
such as climate change concern us all. Considering the wider impact of our actions is
embedded in our values and is a fundamental part of who we are.

Purpose & principles

Our corporate purpose states that to succeed requires "the highest standards
of corporate behaviour towards everyone we work with, the communities we
touch, and the environment on which we have an impact."

Passion for excellence

We commit to exceptional standards of performance and productivity. We share a passion for
excellence.

Teamwork
Teamwork is the heart of our relationship. WE are all talented individuals who achieve more by working
together.

Respect for each other

Respect for each other is a deeply held value. We encourage openness while upholding the dignity,
worth and self-esteem of every individual.

Continuous learning
Continuous learning is a battle cry. We seek and provide opportunities to learn, develop and grow to
become the best that we can be.

Working with others

We want to work with suppliers who have values similar to our own and work to the same standards
we do. Our Business partner code, aligned to our own Code of business principles, comprises ten
principles covering business integrity and responsibilities relating to employees, consumers and the
environment.

Integrity
Integrity is the cornerstone of our business. We conduct our internal and external affairs within a strict
code of business principles and fairness.

Balanced life
We live a balanced life. Our work allows us to have the time, energy and resources to pursue a joyful
and fulfilling life our family, friends and co-workers.

Social responsibility
We have a social responsibility to the Filipino society. We ensure the safety of our workers and
partners. We care for the environment and develop the communities we live in.