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Marketing

Plan of Lux

Term paper on
Marketing Plan of Lux.

Submitted by
Name

ID

Md. Shahinul Islam

102011032

Md. Tasrif- Ur- Rahman

102011114

Dilruba Yeasmen

102011171

Sanjida Begum

102011183

Shaila Ferdous

102011197

Submitted To
Course instructor: Mohammad Sakhawat H Bhuiyan
Course code: Bus-314
Sec-03

Date of Submission: 1st August, 2012.

Acknowledgement
At first, we would like to thank the almighty Allah for his grace in accomplishing our term paper
timely. Our course teacher Mohammad Sakhawat H Bhuiyan played the vital role by providing
us the guidelines of preparing this term paper and presentation. We express our profound
indebtedness and gratitude to him for his valuable advice that helped immensely in preparing this
term paper.
By providing us the opportunity of preparing this term paper, he has enabled us to relate the
academic knowledge of marketing management with the practical scenario. We would also like
to thank Faisal Ahmed for his help. Our special thanks go to our parents, sister for their
encouragement.

1st August, 2012


Mohammad Sakhawat H Bhuiyan
Department of USB
University of Liberal Arts Bangladesh
Dear Sir

Subject: Request for accepting our term paper.

We are requesting you to accept our term paper on marketing plan of Lux. We prepared this term
paper in consideration of your all instruction.

We tried our best to present this term paper in a manner which you taught us in the class. While
we started to prepare this term paper the knowledge of Marketing Management helps us a lot. In
this term paper we tried to make a proper marketing plan of Lux.

Sir, if you have any confusion or any question regarding this term paper please contact at the
following mobile number or Emil.

Mobile No: 01721658714, E-mail address: Tasrif.rahman.std@ulab.edu.bd.

Sincerely,

Md. Shahinul Islam

102011032

Md. Tasrif- Ur- Rahman

102011114

Dilruba Yeasmen

102011171

Sanjida Begum

102011183

Shaila Ferdous

102011197

Table of contents
Chapter
1
1.1
1.2
1.3
1.4
1.5
2
2.1
2.2
2.3
2.4
3
3.1
3.2
3.3
3.4

Title
Executive Summary
Introduction
Unilever at a glance
Objectives of the report
Scope of the study
Methodology of the study
Limitations of the study
The company
History of the company
Mission of the company
Vision of the company
Service offering
About product
Product introduction
Product category
Product types

Page No
Vii
1
1
1
1
2
2
2
2
3
3
4
5
5
5
5

Corporate connection of
marketing plan

Environment analyzing &


forecasting

4.1

Internal environment

4.2

External environment

4.3

Competitive analysis

4.5

Market trend & potential

4.6

SWOT analysis of lux

Segmentation & targeting

10

Objectives of Lux

12

Marketing Strategies

12

7.1

Marketing position of Lux

13

7.2

Product management of
Lux

13

7.3

Pricing

14

7.4

Distribution

14

7.5

Marketing communication

15

Action programmes

16

Financial projection

17

10

Implementation control

19

11

Conclusion

20

12

Bibliographies

21

Executive summary

Unilever is a multinational consumer product manufacturing giant operating in over hundred


countries all around the world. Unilevers one of the most popular brand is LUX. And lux
fulfills the corporate connection of Unilever. Unilever follows the government rules &
regulations & lux is sold according to the socio-culture of our country. Lux is segmented
according to the geographical locations of our country. Targeted customers are the urban and sub
urban upper middle class and middle class people. There are other competitor of lux but among
of them luxs market share is high. Market trends & market potential is satisfactory of lux. And
the main objective of lux is to satisfy the customer. Lux marketing strategies is good. Lux
positioning strategy, product development, pricing, distribution, marketing communication or
promotion activities is done nicely. So lux position is high, product is best, price is affordable &
promotional activities are really very good than others. So day by day lux is creating a special
image in the customers mind & they are capturing the market in a large number. The total
marketing plan will be implemented by different departments. And the financial projection of lux
is good now. Because it is now on maturity stage. But at the last stage of maturity their total sells
will be equal to total profit. And that will be their breakeven point. Now the sales of lux are
really very good. So the profit is high. But after the maturity stage this product may be destroyed
or this product may be re-launched again in a new feather according to the customers demand.
Though Unilever companies strategy is good but Unilever Bangladesh should undertake further
steps such as- moving towards the rural and poorer segment, attract children by making a special
product for kids and other innovative promotional activities to retain its command in the
industry.

1) Introduction

1.1) Unilever At a glance:


Unilever is one of the worlds 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. Operating in Bangladesh for over the last four decades the company is trying to
significantly contribute towards the augmentation of the standard of living by bringing world
class high quality products at the door step of their customers. Unilever Bangladesh Limited, a
fast moving consumer goods company, engages in the manufacture and distribution of home care
products, personal care products, and foods. The company was formerly known as Lever
Brothers Bangladesh Ltd. and changed its name in December 2004. Unilever Bangladesh
Limited was founded in 1964 and is based in Dhaka, Bangladesh. Unilever Bangladesh Limited
is a subsidiary of The Unilever Group. The usage of Unilever products by over 90% of the
people in Bangladesh stands a testimony to their successful operation. . Their array of products
show that they produce household care, fabric cleaning, skin cleansing, skin care, oral care, hair
care, personal grooming, and tea based beverage products under worldwide famous brand names
Wheel, LUX, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Lipton, Lipton Taaza,
Pepsodent, All Clear, Vim,Surf Excel, and Rexona.
1.2) Objective of this report:
This report is an outcome of an analysis of marketing Plan used by Unilever Bangladesh Ltd.
The main purpose of the report is to find the planning what the company uses to market its world
famous beauty soap, LUX, in Bangladesh. The positive and negative aspects of those strategies.
The report further analyzes the position of Unilever Bangladesh Ltd. in the toiletry industry in
comparison to its competitors. The report discusses the corporate connection, process of using
market segmentation, target marketing, the product, pricing, promotional and distribution
strategies and a competitive analysis action activities and implementation control.
1.3) Scope of the study:
The geographical scope of the study was restricted to the Bangladesh due to time and resource
constraints. The study is being exploratory in nature.

1.4) Methodology of the study:


For accessibility and availability of information we have chosen to work on the marketing plan
of Unilever Bangladesh Ltd. As the company operates in the market with a huge number of
products in different industries, we have decided to focus on one of their world wide successful
brands, LUX. Most of the information used in this report is from secondary sources. The main
source of information was the focus group discussion. In addition information was also collected
from websites.
1.5) Limitations of the study:
Every attempt will be taken to obtain the meaningful & error free result but as nothing in this
world is 100% perfect. We believe that there will still the chances for error because of the
following limitations

Their product website is not updated.

As the research was groping in nature, it was not possible to study the accurate
phenomenon of the fact.

The knowledge of report writing is limited.

2) The Company

2.1) History of the Company:


In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight
Soap his revolutionary new product that helped popularize cleanliness and hygiene in Victorian
England. It was 'to make cleanliness commonplace; to lessen work for women; to foster health
and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the
people who use this companys products'.
This was long before the phrase 'Corporate Mission' had been invented, but these ideas have
stayed at the heart of our business. Even their language and the notion of only women doing
housework has become outdated.
Although Unilever wasn't formed until 1930, the companies that joined forces to create the
business we know today were already well established before the start of the 20th century.

Unilever's founding companies produced products made of oils and fats, principally soap and
margarine. At the beginning of the 20th century their expansion nearly outstrips the supply of
raw materials. Tough economic conditions and the First World War make trading difficult for
everyone, so many businesses form trade associations to protect their shared interests. In 1990s
the business expands into Central and Eastern Europe and further sharpens its focus on fewer
product categories, leading to the sale or withdrawal of two-thirds of its brands. In the 21st
century the decade starts with the launch of Path to Growth, a five-year strategic plan, and in
2004 further sharpens its focus on the needs of 21st century consumers with its Vitality mission.
In 2009, Unilever announces its new corporate vision working to create a better future every
day with brands that help people look good, feel good and get more out of life.
In a history that now crosses three centuries, Unilever's success has been influenced by the major
events of the day economic boom, depression, world wars, changing consumer lifestyles and
advances in technology. And throughout we've created products that help people get more out of
life cutting the time spent on household chores, improving nutrition, enabling people to enjoy
food and take care of their homes, their clothes and themselves.
2.2) Mission of the company:
Unilever recognizes that the world in which they operate is changing. Consumers are
increasingly bringing their views as citizens into their buying decisions, demanding more from
the companies behind the brands. They want companies and brands they trust. Unilever
embraces these new expectations. Our heritage of good governance, product quality and long
experience of working with communities gives them a strong base. They aim to build on this by
taking the next step in transparency and accountability. They will stand visibly as Unilever,
behind their products and everything they do, everywhere.
2.3) Vision of this company:
They have always believed in the power of their brands to improve the quality of peoples lives
and in doing the right thing. As their business grows, responsibilities also increase. They
recognize that global challenges such as climate change.
The four pillars of vision set out the long term direction for the company where they want to go
and how they are going to get there -- Work to create a better future every day
Help people feel good, look good and get more out of life with brands and services that
are good for them and good for others.
Inspire people to take small everyday actions that can add up to a big difference for the
world.
Develop new ways of doing business that will allow them to double the size of company
while reducing environmental impact.

2.4) Service offering:

Food : knorr

Taaza

Home Care: Wheel

Vim

Personal Care: AXE

Dove

Lifebuoy

Ponds

Surf excel

Clear

Close up

Fair & Lovely

Lux

Pepsodent

Rexona

Sunsilk

Vaseline

Pure it

3) About Product
3.1) Product introduction:
Everything from look and feel to fragrances of Lux is a delight to the female senses. Lux has
been associated with beauty since 1924. Over the years, Lux has covered various aspects of
beauty and stardom. But now Lux feels that women have forgotten that beauty should be fun.
And looking great is an integral part of being a woman. Lux is here to remind, encourage, inspire
women and have fun with them. Because of deep down, every woman wants to feel like a
fortune. On this note, Lux is celebrating the feminity and playfulness to remind women to enjoy
absolutely everything about becoming and being beautiful.
3.2) Product category:
LUX and other soaps fall into the category of Convenience Good. LUX falls under the category
of toiletry product as a beauty soap.
3.3) Product types:

Lux Strawberry and Cream: Every woman wants to be indulged! Use Lux Strawberry
and Cream to fill your skin smooth and silky. Lovingly created with a sumptuous mix of
luscious strawberries and moisturizing cream extracts that leaves your skin soft.

Lux Peach and Cream: No women can resist the pleasure of being pampered. Use Lux
Peach and Cream, lovingly created with the blend of juicy peach and moisturizing cream
extracts, for a velvety, soft skin. Just gorgeous!

Aqua Sparkle: Wake up to a body that looks fresh and full of life. Lux Aqua Sparkle,
with refreshing mineral salts and seaweed extracts, is the best kept secret to help renew
your skin from bored to full of life! There wont be dull days!

Lux Purple Lotus & Cream: New Lux purple lotus & cream, truly makes your skin
softer than a petal. Since bathing is a daily ritual, it's very important to use the right kind
of soap that moisturizes your skin and leaves you feeling your gorgeous best!

Lux Fresh Splash: A new summer variant Lux Fresh Splash has also been added to the
portfolio of Lux along with this re-launch. Lux is now in a new shape, new packaging
and improved fragrance. For the first time, Lux is enriched with Silk Protein Extract
which provides soft & smooth skin. And with all these changes, Lux is now the Best Ever
Lux!

3.4) Corporate Connection of marketing plan


Unilever Bangladesh Limited, a fast moving consumer goods company, engages in the
manufacture and distribution of home care products, personal care products, and foods. It offers
household care, fabric cleaning, skin cleansing, skin care, oral care, hair care, and personal
grooming products, as well as tea based beverages. Their mission & vision is to build their
business by focusing on their brands & to fulfill the customer satisfaction. They know that
customer wants a healthy lifestyle & they want more variety & quality product. So to satisfy the
customer they have launched Lux. Because Lux will be able to satisfy the customer needs &
wants. They want to capture more market share to delight the consumer of Lux. They provide
better quality product in between reasonable price. Their mission & vision support the corporate
connection of marketing plan of Lux.
4) Environmental Analysis and Forecasting
4.1) Internal environment:
Internal environment of lux consist of employees and resources. Lux has a large group of
employees they are closely binding like a grand family. Lux is an established product so it has a
huge amount of resources.
4.2) External environment:
External environment is so much important for any organization. From external environment
they can find out their threat and also take opportunities to meet the market need.
Diagram of Lux- Basic Elements of External Environment

Mainly two types of business element in external environment:

1. Directly interacting forces.


Competitors
Suppliers
Buyers
Owners
2. Indirectly interacting forces.
Government/Political
Economic
Technology
Socio culture
Legal
But among of them major external environment factors are:
Social
Political &
Economic trend

Social: Unilever sells lux by maintaining the social or socio cultural environment of the
country. They dont use anything which can hurt the culture of our country. Because of
this they are selling Lux nicely.
Political or Government: They follow the government rules & regulations. So they
dont face any kind of problem. According to government rules they pay taxes. But
sometimes due to political instability they have some problem in business environment.
For the next six month political instability can be happened. So they need to take
appropriate steps for this. If they do their product development, promotional activities &
others now then they will be able to sell lux nicely.
Economic Trends: According to the purchasing power of people lux is sold. Unilever
knows that Bangladesh economy is growing economy. According to that thing they have
set the price of lux.

4.3) Competitive Analysis:


The beauty soap industry has a few major producers of which Unilever holds market share of
slightly less than 50%. Other competing brands like Tibbet, Aromatic, Meril, Lilly, Lifebuoy and
Keya have started to have strong consumer base, but LUXs product features, distribution and
promotional activities have created high brand loyalty for which it is still the market leader.
4.4) Market trends & potential:
Lux market trends & potential is really very good. So Unilever tried to maintain the lux trend &
potential. They follow a structured price strategy and follow the need of the customer & maintain
a consistency in branding. They know that if they are able to maintain their market trend &
potential then other competitors cant hamper them.
4.5) SOWT Analysis of Lux:
SWOT analysis is an important step in planning and its value is often underestimated despite the
simplicity in creation. The role of SWOT analysis is to take the information from the
environmental analysis and separate it into internal issues (strengths and weaknesses) and
external issues (opportunities and threats).
STRENGTHS
Strong Market Research (door to door
sampling is done once a year in Urban
and Rural areas).

WEAKNESSES
Usage rate/ wear rate is high and is
generally mushy and wet.
Lux is mainly positioned as beauty

Many variants.

soap targeted towards women, hence it

Strong sales and distribution network.

lacks liberal appeal.

Strong brand image.


Positioning focuses on the attractive
beauty segment.
Strong brand promotion but relatively
lower price which is a winning
combination in the popular segment.

Stock out problems - replacement time


is high in semi-urban/rural areas.

OPPORTUNITIES

THREATS

Beauty segments Compounded Annual

High internal competition.

Growth Rate (CAGR) is very high. Lux

New entrants or local competitors.

must reinforce its presence in the

Excessive dependence on beauty

beauty segment.

segment makes Lux vulnerable to

Retentive strategy required as the soap


segment is in the mature stage of its product

changing customer tastes.


Technological change makes the

life cycle.

existing products out of date. Lux should

Liquid body wash is currently in the

focus on technological innovations like Body

growth stage so Lux should come out with

Wash.

more variants in this segment.


Line extension probably with more variants
catering to the beauty segment like natural,
herbal soap etc

5) Segmenting & Targeting


5.1) Segmentation:

Types of Soap
P
R

High

Beauty soap
Dove
Imperial

Healthy soap
Fa
Farmesi

Medium

Lux

Savlon
Lifebuoy

I
C
e

From the above diagram we can easily understand that Lux follow a segment which capturing
the beauty soap category and price is average. So the target customers are who those are beauty

conscious and can pay medium price for a better soap. For this it holds a slogan to the women
declare your beauty.
Urban and sub urban middle class, and rural poor people are the largest part of Bangladesh
population. A research carried out by Unilever Bangladesh 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.

Urban Rich

Urban and Sub


Urban Upper
Middle and Middle
Class

Rural Poor
Market Segments
5.2) Targeting:
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 socio economic clusters
(SEC) they target category B and C, because they are assumed to be financially well-off and can
afford to buy LUX.

Socio Economic Clusters


A
B
C
D
Income
High Income Upper
Mid
Lower Middle
Middle Level Level
Income
Income
Income
Educated
Educated
Education High Level of Educated
Education
Slightly Less
Slightly
Slightly Less
than Cluster A Less than than Cluster C
Cluster B

E
Low
Income
Very Low
Level
of
Literacy

Socio economic clusters segmentation

6) Objectives of Lux

Establish a strong brand image and consumer loyalty.


Maintain positive strong growth.
Decrease consumer acquisition cost by almost 1.5% per year.
Easiest and availability of the product to the target consumer.

7) Marketing strategies
Marketing strategy is a process that can allow an organization to concentrate its limited resources
on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.
Unilever can do their marketing strategies for Lux in the following process.
7.1) Market position of Lux:
Unilever Bangladesh Ltd can be 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.
Since in the beauty soap industry all products are of same price. But Unilever cannot provide its
consumers with better price but it is in a great position in reference with its packaging,
fragrances and product designing, in comparison to its competitors. The pricing of LUX is same

but consumers rate it as the product which gives them the highest quality. This positioning
created a strong customer loyalty for LUX, for which it will be the market leader in the industry.

The positioning map of the company is shown to describe LUXs position in the consumers mind
on two dimensions. That is price and quality.

7.2) Product Management of LUX:


Everything from look and feel to fragrances of Lux is a delight to the female senses. Over the
years, Lux has covered various aspects of beauty and stardom. But now Lux feels that women
have forgotten that beauty should be fun and looking great is an integral part of being a woman.
Lux is here to remind, encourage, inspire women and have fun with them. Because deep down,
every woman wants to feel like a fortune. On this note, Lux is celebrating the feminity and
playfulness to remind women to enjoy absolutely everything about becoming and being
beautiful. So lux offers many different colors and fragrances products like Lux Strawberry and
Cream, Lux Peach and Cream, Aqua Sparkle, Lux Purple Lotus & Cream. These create a
different personality to hold the market position and maximum market share. Branding is an
important matter for every product. Branding for Lux can help to achieve the first objective of
the Lux marketing plan. It also reinforces the second objective.

7.3) Pricing:
Though Unilever Bangladesh 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 Bangladesh. 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. Lux basically follows the risk free pricing. Table compares
Luxs price with its major competitor. Company carries out research on competitors price and
brand loyalty when it feels extreme necessity of changing price. The brand loyalty test is an
exploratory research which is known as Brand Health Check-Up (BHCU). Sometimes it follows
promotional pricing by which consumer get one free through buy one. For capture more market
share manager can follow product line strategy to reach more customers from higher level to
lower level. Also can follow value pricing.
Brand
Price(100gm)
Lux
26
Aromatic
26
keya
26
Sandalina
29
Comparative scenario of soaps price
7.4) Distribution:
Unilever Bangladesh 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, one in
each division of Bangladesh, where the product goes after they are manufactured at Kalurghat
factory. Table shows the location of its six warehouses in Bangladesh. 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


Bangladesh Ltd. These distributors then supply the product all over Bangladesh 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 Bangladesh because of a recent increase
in demand of its product to all segments of the population.
Division
Dhaka
Chittagong
Sylhet
Rajshahi
Khulna
Barisal

Location of Warehouse
Dhaka City
Kalurghat Heavy I/A
Sylhet City
Rajshahi City
Khulna City
Barisal City

7.5) Marketing Communication:


Unilever Bangladesh can undertake huge promotional activities to promote LUX which has
topped the beauty soap industry of Bangladesh. It spends almost 20% to 25% of its Net Proceeds
from Sales (NPC) of LUX for promotional activities for LUX. The promotion mix is classified as
follows:
Advertising: Its certain annual promotional campaigns like LUX Channel i
Superstar and LUX Channel i Annual Cinema Awards has made the product a part of
the glamour world. Since the 1930s, over 400 of the worlds most stunning and
sensuous women have been proudly associated with Lux advertisements. They do not
only promote LUX in Bangladesh for the beauty conscious females, it also promotes
the brand for males and the company proved that, by including world famous male
and female celebrities internationally Shahrukh Khan, Aishwarya Rai, Katrina Kaif
for their advertising campaign. They give advertise through-----Transit, Electronic
Media, Print Media, Direct. For effective advertising have to decide media chart and
the type, tone, appeal and order of presentation of advertising.
Sales Promotion: Sales promotion, a key ingredient in marketing campaigns,
consists of a collection of incentive tools, mostly short term, designed to stimulate
quicker or greater purchase of particular products or services by consumers or the
trade. Whereas advertising offers a reason to buy, sales promotion offers an incentive
to buy.
Public Relations: Not only must the company relate constructively to customers,
suppliers and dealers, it must also relate to a large number of interested publics. A
public is any group that has an actual or potential interest in or impact on a
companys ability to achieve its objectives. PR involves a variety of programs
designed to promote or protect a companys image or its individual products.
They can perform the following functions--- Press relations
Product Publicity

Corporate Communications
Counseling
Direct Marketing: Unilever Bangladesh 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. Till now direct marketing activities of LUX is in well concern among
people in Bangladesh.

7.6) Market Research:


After successfully doing the above statements it is important to do market research. Because if it
is done then they will be able to know the customers problem and according to that they can
improve the product quality. And if they improve the product quality then they will be able to
sell their product in a huge number and be able to satisfy the customer. As Unilever is a big
company so if they do market research then they will be able to know the consumer need &
according to their need they can supply the product within a reasonable price.

8) Action programs
Unilever Bangladesh Ltd has a very well-structured organization. Every department of it does its
job very efficiently. The marketing plan which we have made will be implemented and
accomplished by different departments. First of all the plan will have to be approved by the top
level executives. The strategies regarding the product, its promotional activities, price
setting all will be done by the marketing department. They can set the time of advertisement
of lux. In rainy season they dont need to do billboard advertisement. They can do this kind of
advertisement in summer or winter season. For advertisement it can follow the media chart
which is shown below. Whatever advertisement given is not so much important; important is the
timing of advertisement. For Lux middle of any popular television program advertise may be
more effective than middle of an unexciting talk show. As it is a beauty soap, the appeal of
advertisement bearing emotion which consist romance not family ties. If in the future company
wants to offer unisex Lux soap, in advertisement they can show the family ties as well. Lux is
now in maturity stage so reminder advertising is most appropriate at this stage.

Media
Chart
MeMMMM

Six Seasons
Media Type
Radio
Television
A level
Television
B level
Billboard
News paper
English
News paper
Bangle

Summer

Rainy

Autumn

Late Autumn

Winter

Spring

The job of designing the product, manufacturing and packaging will be accomplished by the
production department. They can add more fragrances in lux. Finance department will be
responsible for budgeting and financing the product. They need to set a specific budget so that
they will be able to earn profit. Like other brands of the company, a brand manager
needs to administer overall activities of the product. If it is done then they will be able to
capture most of the market share.

9) Financial projection
Lux is doing their business nicely. Their financial projection is given below.
Sells
Super
markets
others
Total sells

Next
three Next
month
month
3100000
5025000
5200000
8300000

8578000
13603000

six Next
one After
one After
two
year
year
year
7700000
59200000
79852000
10520000
18220000

75605000
134805000

91250000
171102000

Cost
of
production
Direct cost
Indirect cost
Total cost

Next
three
month
2600000
4100000
6700000

Profit

Next
three Next
month
month
1600000
1890000

Total profit

Next
six Next
one
month
year
4922000
7161000
6791000
8873000
11713000
16034000

After
one
year
51605000
68920000
120525000

After
two
year
70630000
85020000
155650000

six Next
one After
one After
two
year
year
year
2186000
14280000
15452000

In the above chart we see that profit of lux is increasing. It is our assumed profit. If this condition
exists then lux will be able to earn profit. But now lux is in the maturity stage. After 10 years
new competitor will enter into the market & then their sells will be declined. If they want to exist
in the market then they need to kill the new competitor. But in this world no product can exist
forever. So on the last stage of their maturity may be their total sells will be equal to total profit
& that will be their breakeven point. And on the decline stage the product may be declined. But
if they want to save lux then they need to re-launch the lux in a new way & in a new image on
the decline stage.

The above diagram is the diagram of product life cycle. Now lux is in the maturity stage. On the
decline stage they can destroy the product or they can re-launch lux in a new way & image.

10) Implementation Control

10.1) Sales objective:


Their sales objective will be to sell Lux as much as possible. Because if they sell Lux then they
will be able to earn a huge amount of profit.
10.2) Sales forecast:
Lux feels that the sales forecast is conservative. It will steadily increase sells as the advertising
budget allows. As this Lux will be available in both super markets & other stores, so in the
following table we can see its sales forecast.
Sales
Super
markets
others
Total sales

2012
18000000

2013
20000000

2014
25000000

2015
30000000

2016
30000000

20000000
38000000

22000000
42000000

30000000
55000000

40000000
70000000

50000000
80000000

We assume that now Lux position is good. And hopefully next year their sells will be increasing.
But when their sells started to decline then proper promotional activities will be pushed to
increase the sells.

10.3) Expenditure against budget:


The expense forecast will be used as a tool to keep the department on target & provide indicators
when correction & modification are needed for the proper implementation of the marketing task.
Now the marketing expense is limited for Lux because it is on maturity stage. But after the
maturity stage marketing expense will be increased as promotional activities will be increased.
10.4) Periodic evaluation of all marketing objectives:
After that it is important to evaluate the marketing objectives time to time. If it is done then it
will be better for them. Because of this they will be able to identify the problem & solve the
problem.

10.5) Readjustment to the marketing plan:


If any activities didnt done in the marketing plan then those activities must be readjusted to the
marketing plan. If it is done then unilever will be able to sell Lux in a large number.

11) Conclusion
Unilever is a multinational consumer product manufacturing and operating hundred countries all
around the globe. Unilever is one of the most popular brand is LUX. Marketing plan of Lux
support the corporate view. They segments LUX market according to geographical locations. It
further differentiates these segments into Socio Economic Cluster SEC. Tactical marketing tools
are extensively used by the company to market LUX. Though LUX is produced in Bangladesh,
Unilever Bangladesh maintains the same standard all around the globe. The product is available
in different fragrances under three different sizes. Since the demand for beauty soap market is to
a great extent oligopolistic, variations in price lead to price war which can eventually break down
The Companys market share. Thus Unilever cannot provide a better price than its competitors
but the price is affordable by most of the people. Unilever Bangladesh has outsourced its
distribution channels to third party distributors which allow them to distribute LUX in massive
bulks amounting to around ten million pieces. It undertakes the largest promotional activities in
the beauty soap industry. Other competing brands like Tibbet, Aromatic and Keya have started
to have a strong consumer base but LUX s product features distribution and promotional
activities have created high brand loyalty for which it is still in the market leader. Unilever with
the aid of its heavy promotional activities has been able to penetrate the market but the other
producers in the industry are posing a threat towards Unilevers market share as they have
moved towards the rural masses of the population. Therefore Unilever Bangladesh should
undertake further steps such as- moving towards the rural and poorer segment, attract
children by making a special product for kids and other innovative promotional activities
to retain its command in the industry.

12) Bibliographies
http://l.yimg.com/t/movies/glamsham/20100303/06/20100302-1600001_1267597529_large.jpg viewed on 27th July, 2012.
http://www.fundinguniverse.com/company-histories/Lever-Brothers-company-companyHistory.html viewed on 28th July, 2012.
http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=51886
625 viewed on 29th July, 2012.
http://en.wikipedia.org/wiki/Lux_%28soap%29 viewed on 30th July, 2012.
http://www.google.com/search?pq=lux+beauty+soap++lotus+of+bangladesh&hl=en&ds=i&cp=8&gs_id=ad&xhr=t&um viewed on 31st July,
2012.

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