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Plan of Lux
Term paper on
Marketing Plan of Lux.
Submitted by
Name
ID
102011032
102011114
Dilruba Yeasmen
102011171
Sanjida Begum
102011183
Shaila Ferdous
102011197
Submitted To
Course instructor: Mohammad Sakhawat H Bhuiyan
Course code: Bus-314
Sec-03
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.
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.
Sincerely,
102011032
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
4.1
Internal environment
4.2
External environment
4.3
Competitive analysis
4.5
4.6
10
Objectives of Lux
12
Marketing Strategies
12
7.1
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
1) Introduction
As the research was groping in nature, it was not possible to study the accurate
phenomenon of the fact.
2) The Company
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.
Food : knorr
Taaza
Vim
Dove
Lifebuoy
Ponds
Surf excel
Clear
Close up
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!
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.
WEAKNESSES
Usage rate/ wear rate is high and is
generally mushy and wet.
Lux is mainly positioned as beauty
Many variants.
OPPORTUNITIES
THREATS
beauty segment.
life cycle.
Wash.
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
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.
E
Low
Income
Very Low
Level
of
Literacy
6) Objectives of Lux
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.
7.3) 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.
Location of Warehouse
Dhaka City
Kalurghat Heavy I/A
Sylhet City
Rajshahi City
Khulna City
Barisal City
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.
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.
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.
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.