PROJECT ON MARKET SEGMENTATION,

CONSUMER BEHAVIOR, PRODUCT POLICY

POSITIONING
OF
LUX SOAP

Submitted to:

Submitted by

Dr.Reeti Agarwal

Ashutosh Srivastava (JIML-10-032)

Abhishek shukla
(JIML-10-03)
Ashima Saxena (JIML-10-FS-005)
Deepti Mahawar (JIML-10-R-001)
Mamta Agarwal (JIML-10-R-003)

ACKNOWLEDGEMNT

Perseverance Inspiration and motivation have always played a key

role in the success of any venture. So hereby, it is our pleasure to
record thanks and gratitude to the people involved.
Firstly, we thank DR. REETI AGARAWAL for her continuous
support in the project.
DR. REETI AGARWAL was always there to listen and to give
advice. She is responsible for involving us in the project on Soap
Industry in the first place. She showed us different ways to
approach a research problem and the need to be persistent to
accomplish any goal. Without her encouragement and constant
guidance we could not able to finish the project. She was always
there to meet and talk about any query.
Last, but not least, we would like to thank all class mates and
hostel mates who support us throughout the project.
ASHUTOSH K.SRIVASTAVA
ABHISHEK K. SUKLA
ASHIMA SAXENA
MAMTA AGARWAL
DEEPTI MAHAWAR

COMPANY PROFILE- HUL

1 A 52 % Owned Subsidiary of Anglo Dutch giant Uniliver
2 Indias largest FMCG company
3 Touching 2 out of 3 Indian consumer
4 20 distinct categories- Home and personal care products,
food and beverages
5 HLL-HUL
6 100 factories in India-manufacturing its diverse product
range
7 Headquarter-Mumbai
8 Market share-toilet soap category-54.3 %
9 With over 7 brandsLux,Lifebuoy,Hamam,Dove,Rexona,Breeze and Pears
DISTRIBUTION CHANNEL-HUL

2000 + Suppliers and associates

4000 redistribution stockiest
Covering 1 million retail outlets
Reaching 250 million rural consumers

OVERVIEW: LUX SOAP

1916-Laundry soap
1925-Bathroom soap
1929-Launch in India
First brand Ambassador-Leena Chitins(1929)
Current brand Ambassador-Asin Thottumkal in India(17- sep
-2010)

Lux stands for promise of beauty and glamour as one of the

Indias most trusted personal care brands with value share 15
%
LUXURY

FACTORS THAT WILL AFFECT PURCHASING OF LUX

SOAP:Factors that will affect purchasing of Lux soap are followings1-CULTURAL FACTORS: Purchasing of Lux soap affect from movie star because
people think that if it is good enough for a film star, it is good
for me.
Purchasing of Lux soap affect from income of people. Rural
people will not purchase Lux generally due to its high price.
Generally use in Asia like India and Pakistan
2-SOCIAL FACTORS: Purchasing of Lux soap affect from family purchasing. if
my family and siblings use Lux soap since years than I
will definitely purchase Lux soap.
If my friend group uses Lux soap then I will definitely use
Lux soap.
Many people think that to use Lux is state symbol so they
will use Lux soap.
3-PERSONAL FACTORS: Generally purchasing of Lux soap is done for age group 1550+ so for baby there is no Lux soap so people may be move
to other brand during soaping.
Lux is beauty soap so for personality grooming people will
purchase Lux soap.
Generally people with good occupation will purchase Lux
because its price is suitable for high income group people.

4-PSCHYCOLOGICAL FACTORS: Lux purchasing will be definitely affected from

pschycological factors like motivation, perception.
For example in tension or stress condition you can
purchase any soap rather than Lux.
Motivational speeches of celebrities also influence
purchasing of Lux.
5-SITUATIONAL FACTORS: Situational factors like mood of consumer, time, and term
and conditions money also affect purchasing of LUX.
For example1-Due to lack of time people can purchase any soap rather
than Lux.
2-Due to penetration of new soap of other brand in lower
price in market people can also switch to that soap rather than
buying Lux soap.
3-Mood of consumer also affects purchasing. If consumer
decided to use soap due to its more qualities than Lux, then it
will affect purchasing of Lux.
4-Term and condition also affect purchasing of LUX.When
one Lux or another product is free on purchasing of Lux, then
definitely people will purchase more Lux soap.
5-Cost of product also affect purchasing. Due to its high cost
rural poor people doesnt like to buy Lux soap.

Market segmentation . A market segment is a sub-set of a market made up of

people or organizations with one or more characteristics
that cause them to demand similar product and/or
services based on qualities of those products such as
price or function. A true market segment meets all of the
following criteria: it is distinct from other segments
(different

segments

have

different

needs),

it

is

homogeneous within the segment (exhibits common

needs); it responds similarly to a market stimulus, and it
can

be

reached

by

market

intervention.

The term is also used when consumers with identical

product and/or service needs are divided up into groups
so they can be charged different amounts. The people in
a given segment are supposed to be similar in terms of
criteria by which they are segmented and different from
other segments in terms of these criteria. These can
broadly be viewed as 'positive' and 'negative' applications
of the same idea, splitting up the market into smaller
groups.

Qs. On the basis of the different buying roles enumerate which

role will be played by which member of your family?
Ans. The different buying roles and those buying role takers have
been stated as follows:
1. Initiator Give idea of buying. Initiator can be any one according
to the needs and desires. If for instance Lux soap has to be
purchased then father or mother, any one can be the initiator for
that purchase.
2. Influencer Who influence buying idea. This role is most of the
times occupied by mother and children who will influence the
decision either by spreading their own knowledge regarding
that

product

or

through

their

various

sources

like

advertisements, neighbors or society etc.

3. Decider This role is played by the father who is the only one
earning in the family. Therefore, the payment is made by him
and he is considered as decider.
4. Buyer- This role is fulfilled by anyone who goes to market to
buy Lux product. This shows that father, mother, sibling and
myself are the buyers.
5-User This role is again occupied by everyone as because
everyone at home is the user of the Lux product

Qs.What kind of buying behavior wills your purchase of that

particular product exhibit?
There are different kinds of buying behavior. According to the
brand which we have chosen that is Lux the buying behavior
exhibited is habitual buying behavior. There is no much
difference between the products of this brand and the products of
other brands as well as the buyer involvement are low as because
the purchase is not much expensive and frequently found in
everywhere and Lux soap loving individuals habits to buy Lux
soap every time. Therefore Lux comes under this kind of buying
behavior.

Qs.Analyse what categories of product mix analysis for the

company you had undertaken?
Lux and other soaps fall into the category of convenience goods
. They are compared with other products in the category on
the basis of suitability, quality, price
PRODUCT MIX; -A product mix (or product assortment) consists
of all the product lines and items that a particular seller offers for
sale.
A companys product mix has four important dimensions:
width, length, depth, and consistency.
Product mix width refers to the number of different product
lines the company carries

Product mix length refers to the total number of items the

company carries within its product lines.

Product line depth refers to the number of

versions offered of each product in the line.
Consistency of the product mix refers to how closely relate
the various product lines are in end use, production
requirements, distribution channels, or some other way.
PRODUCT LINE:- A product line is a group of products that are
closely related because they function in a similar manner, are sold to

the same customer groups, are marketed through the same types of
outlets, or fall within given price ranges

PRODUCT MIX-HUL-Company carries a number of different product line

1. PERSONAL WASH
1-Lux
2-Lifebuoy
3-Liril
4-Hamam
5-Breeze
6-Dove
7-Pears
8- Rexona
2. LAUNDRY
1-Surf excel
2-Wheel
3-Rin
4-Sunlight
3. SKIN CARE
1-Fair & lovely
2-Ponds
3-Vaseline
4-Aviance
4. HAIRCARE
1-Sunsilk naturals
2-Clinic
5. DEODRANTS
1-Axe

2-Rexona
6. ORAL CARE
1-Pepsodent
2-Closeup
6. COSMETICS
1-Lakme
7. AYURVEDIC PERSONAL ANDHEALTH CARE
1-Ayush
8. TEA
1-Brookbond
2-Lipton
9. COFFEE
1- Bru
10.FOODS
1. Kissan
2. Annapurna
3. Knorr
11.ICE CREAM
1-Kwality walls
WIDTH 12
LENTH 31
DEPTH Suppose LUX has 9
variants(almond,orchid,fruit,saffron,sandalwood,international,chocolate,aro
matic extracts, oil and honey glow)and 3 different size(100
gram,120gram,150 gram) then PRODUCT DEPTH 9 327
CONSISTENCY LUXs product lines are consistent insofar as they
are consumer products that go through the same distribution
channels. The lines are less consistent insofar as they perform
different functions for buyers. So overall Consistency is HIGH

PRODUCT LIFE CYCLE INTRODUCTION OF PRODUCT LIFE CYCLE:PLC shows the stages that products go through from development to
withdrawal from the market.

Each product may have a different product cycle.

PLC determines revenue earned.
PLC contributes to strategic marketing planning.
To identify when a product needs support, redesign, renovating,
withdrawal etc.

INTRODUCTION STAGE OF PLC OF LUX SOAP:-

In initial stages LUX was introduced in the major cities of India like
Calcutta, Mumbai etc.
Marketing objectives:- to create the product awareness and to attract the
customer towards the product.
LUX MARKETING STRATEGIES IN INTIAL STAGE:PRODUCT-They offer only one product in the market. They did not come
up with the differentiated product.
PRICE-In the initial stages of the product; they offer the relatively higher
price than their competitor (lifebuoy) because they want to recover their
initial cost of making the product.
ADVERTISING-In the initial stages, they allocate more advertising budget
so that more and more customers could be attracted towards the product.
First ambassador was Leela Chitnis.
DISTRIBUTION-It was selective and only covers the major cities of India
to get recognition in those cities.
Their distribution through-MANUFACTURER-WHOLESALERRETAILER.
SALES-low sales
COSTS-High cost per customer

PROFITS-Negative
MARKET STRATEGIES-Create product awareness in major cities of
India
PRODUCT SRTATEGY-Offer a basic product
PRICE STRATEGY- Use cost plus
DISTRIBUTION STRATEGY-Build selective distribution
ADVERTISING STRATEGY-Build product awareness

GROWTH STAGE:In the growth stage, their sales rapidly started rising.
MARKETING OBJECTIVESThey have expanded their market to their other cities of India.
To maximize more market share
MARKETING STRATIGIESPRODUCT-In the growth stage, the company had offered the same product
in the market.
PRICE-In this stage, company had reduced their price to some extent
Because of maximizing the market share.
ADVERTISING-In the growth stage, they had increased their advertising
budget as in the initial stages because of attracting the new customers or to
retain the existing customers.
Sharmila Tagore,Hema Malini,Zeenat Amaan,Juhi Chawala,Madhuri
Dixit,Sridevi.
DISTRIBUTION-In this stage, company had expanded their market to
other cities of India. Distribution channel was same as in the initial stage.
PROMOTION-In the growth stage company had also used the different
proportioning strategies to attract the new and existing customers.

SALES-Rapidly rising sales

COSTS-Average cost per customer
PROFITS-Rising profits
MARKETING OBJECTIVES-Maximize market share
PRODUCT STRATEGY-Offer product extension services
PRICE STRATEGY-Price to penetrate market
DISTRIBUTION STRATEGY-Build intensive distribution
ADVERTISING STRATEGY-Build awareness and interest in mass
market.

MATURE STAGE:They modified the product by adding some changes in the product.
In this stage few competitors enter into the market like CINTHOL,
FAIRGLOW, SANTOOR, FIAMA DI WILLS, and VIVEL.
MARKETING OBJECTIVES-To maximize more profit while defending
the market share and to expand the market to all the cities of India.
MARKETING STRATIGIESPRODUCT-The LUX has made the modification in the product by
introducing LUX almonds, LUX fruit, LUX saffron, LUXsandalwood etc.
PRICE-The LUX products are now available at higher prices in the market
to gain maximum profit.
DISTRIBUTION-Available in all cities of India.
ADVERTISING-LUX advertising has been reduced to some extent because
of the more brand awareness in the minds of the customers.
Recently they have shown Aishwarya Rai, Kareena Kapoor, Abhishek
Bachhan, Asin etc.
PROMOTIONAL OFFERS-Buy 3, get one free
SALES-Peak sales
COSTS-Low cost per customer

PRODUCT STRATEGY-Diversify brands and models

PRICE STRATEGY-Price to match or best competitors
DISTRIBUTION STRTEGY- Build more intensive distribution
ADVERTISING STRATEGY-Stress brand differences and benefits.

DECLINE STAGEBesides of all the campaigns for sales promotion of LUX, the reasons for its
decline are1-CURRENCY FLUCTUATIONS-Unilever products are in over 100
countries; as a result it is exposed to adverse currency fluctuations like
fluctuations due to euro exchange rate.
2-SLOW DOWN-Due to economic crisis in 2008-09, customers started
looking products cheaper than LUX.
3-COMPETITION-LUX has been facing competition from HUL itself
(LIFEBOUY) and from other companies like Godrej products (like
CINTHOL, FAIR GLOW), WIPRO like SANTOOR, ITC like Superia, vivel
etc.
SALES-Declining sales
COSTS-Low cost per customer
PROFITS-Declining profits.
MARKETING OBJECTIVES-Reduce expenditure
PRODUCT STRATEGY-Phase out weak items

PRICE STRATEGY-Cut price

DISTRIBUTION STRATEGY-Go selective phase out unprofitable outlets.
ADVERTISING STRATEGY-Reduce to level needed to retain hard core
loyal customers

PRODUCT CATEGORY AND BRAND

LUX soap comes under HUL BRANDS and BATHING SOAP

category

HUL BRANDS in bathing soap category areLUX,

DOVE
LIFEBOUY
HAMAM
PEARS
LIRIL
BREEZE
REXONA

BASES OF SEGMENTATION USED FOR LUX SOAP:Demographic segmentation:

Age: 15-50+
Gender: female, Male

Family size: 2, 3-4, 5+

Income: Rs.10, 000+
Target Area: Higher income group
Behavioral segmentation
Benefits: Quality,
Fragrance & Skincare.
User status : Regular user

Pschyco graphic segmentation

Social class: Middle &
Upper class.
Lifestyle: OutdoorOriented, House-wife
Geographic segmentation
World region: Asia
Country: India, Pakistan
Cities: All cities of India& Pakistan
Target Area: Urban &
Semi Urban
Qs-LEVEL OF MARKET SEGMENTATION USED BY LUX
Level of market segmentation used is micromarketing wherein HUL
uses segment marketing for its products. The different kinds of
product produced by HUL are directed towards different market
segments like soap with varying size and price to meet customer
requirements.

Qs-PATTERN OF MARKET SELECTION THE COMPANY HAS ADOPTED:-

Lux is not an highly expensive but an affordable product. That is why the
company targets urban and suburban, upper middle and middle class people
who are the second highest population of segment category

HUL has adopted Selective specialization and full market coverage

strategies.

1-SELECTIVE SPECIALIZATION STRATEGY- This is a multiplesegment strategy, also known as a differentiated strategy. Different
marketing mixes are offered to different segments. The product itself may or
may not be different - in many cases only the promotional message or
distribution channels vary .

2-FULL MARKET COVERAGE STRATEGY:- Firms tries to serve all customer

groups with all product that they need. Under this strategy, particularly
HUL has adopted DIFFERENTIATED MARKETING STRATEGY in
which firms operates in different segments and designs different product for
different segments.

 EXAMPLEHUL launched the SUNLIGHT (Yellow),WHEEL(Green),RIN(Blue),and

SURF ULTRA(White) detergents powders for different market segments.

POSITIONING THE HUL HAS ADOPTED:POSITIONING:- It is the art of designing companys offering & image so
that they occupy a meaningful /distinct competitive position in the target
customers mind.
LUX POSITIONING: Lux wanted to ensure that the brand be positioned as premium but also
did not wanted to compromise on the share. Thus born international
Lux which is the premium variant and the affordable segment was
catered by Lux beauty soap. Earlier the brand uses the positioning
Beauty soap of film stars.

RELATIONSHIP BETWEEN LUX POSITIONING & ITS

PUNCHLINE
Lux international has moved from being a soap brand to a skin care
brand according to the tagline Not just soap, its skincare.Lux has
also launched strawberry and cream and peaches and cream soaps..

The USP of the product of the company:1-Lux is a brand that appreciates beauty and glamour.
2-Lux is a beauty soap of the film stars,
3-A delight to the senses.
4-Lux celebrates the indulgent ritual of beautification.
5-Lux is always reliable and trustworthy